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News Article | February 22, 2017
Site: www.nature.com

All animal procedures adhered to the laws governing animal experimentation issued by the German Government. For all experiments, we used 3- to 12-week-old C57Bl/6 (n = 3), Chattm2(cre)Lowl (n = 34; ChAT:Cre, JAX 006410, The Jackson Laboratory), and Tg(Pcp2-cre)1Amc (n = 5; Pcp2, JAX 006207) mice of either sex. The transgenic lines were cross-bred with the Cre-dependent red fluorescence reporter line Gt(ROSA)26Sortm9(CAG-tdTomato)Hze (Ai9tdTomato, JAX 007905) for a subset of experiments. Owing to the explanatory nature of our study, we did not use randomization and blinding. No statistical methods were used to predetermine sample size. Animals were housed under a standard 12-h day–night rhythm. For recordings, animals were dark-adapted for ≥ 1 h, then anaesthetized with isoflurane (Baxter) and killed by cervical dislocation. The eyes were removed and hemisected in carboxygenated (95% O , 5% CO ) artificial cerebral spinal fluid (ACSF) solution containing (in mM): 125 NaCl, 2.5 KCl, 2 CaCl , 1 MgCl , 1.25 NaH PO , 26 NaHCO , 20 glucose, and 0.5 l-glutamine (pH 7.4). Then, the tissue was moved to the recording chamber of the microscope, where it was continuously perfused with carboxygenated ACSF at ~37 °C. The ACSF contained ~0.1 μM sulforhodamine-101 (SR101, Invitrogen) to reveal blood vessels and any damaged cells in the red fluorescence channel. All procedures were carried out under very dim red (>650 nm) light. A volume of 1 μl of the viral construct (AAV9.hSyn.iGluSnFR.WPRE.SV40 or AAV9.CAG.Flex.iGluSnFR.WPRE.SV40 (AAV9.iGluSnFR) or AAV9.Syn.Flex.GCaMP6f.WPRE.SV40, Penn Vector Core) was injected into the vitreous humour of 3- to 8-week-old mice anaesthetized with 10% ketamine (Bela-Pharm GmbH & Co. KG) and 2% xylazine (Rompun, Bayer Vital GmbH) in 0.9% NaCl (Fresenius). For the injections, we used a micromanipulator (World Precision Instruments) and a Hamilton injection system (syringe: 7634-01, needles: 207434, point style 3, length 51 mm, Hamilton Messtechnik GmbH). Owing to the fixed angle of the injection needle (15°), the virus was applied to the ventronasal retina. Imaging experiments were performed 3–4 weeks after injection. Sharp electrodes were pulled on a P-1000 micropipette puller (Sutter Instruments) with resistances >100 MΩ. Single cells in the inner nuclear layer were dye-filled with 10 mM Alexa Fluor 555 (Life Technologies) in a 200 mM potassium gluconate (Sigma-Aldrich) solution using the buzz function (50-ms pulse) of the MultiClamp 700B software (Molecular Devices). Pipettes were carefully retracted as soon as the cell began to fill. Approximately 20 min were allowed for the dye to diffuse throughout the cell before imaging started. After recording, an image stack was acquired to document the cell’s morphology, which was then traced semi-automatically using the Simple Neurite Tracer plugin implemented in Fiji (https://imagej.net/Simple_Neurite_Tracer). All drugs were bath applied for at least 10 min before recordings. The following drug concentrations were used (in μM): 10 gabazine (Tocris Bioscience)50, 75 TPMPA (Tocris Bioscience)50, 50 l-AP4 (l-(+)-2-amino-4-phosphonobutyric acid, Tocris Bioscience) and 0.5 strychnine (Sigma-Aldrich)51. Drug solutions were carboxygenated and warmed to ~37 °C before application. Pharmacological experiments were exclusively performed in the On and Off ChAT-immunoreactive bands, which are labelled in red fluorescence in ChAT:Cre × Ai9tdTomato crossbred animals. We used a MOM-type two-photon microscope (designed by W. Denk, MPI, Heidelberg; purchased from Sutter Instruments/Science Products). The design and procedures have been described previously52. In brief, the system was equipped with a mode-locked Ti:Sapphire laser (MaiTai-HP DeepSee, Newport Spectra-Physics), two fluorescence detection channels for iGluSnFR or GCaMP6f (HQ 510/84, AHF/Chroma) and SR101/tdTomato (HQ 630/60, AHF), and a water immersion objective (W Plan-Apochromat 20×/1.0 DIC M27, Zeiss). The laser was tuned to 927 nm for imaging iGluSnFR, GCaMP6f or SR101, and to 1,000 nm for imaging tdTomato. For image acquisition, we used custom-made software (ScanM by M. Müller and T.E.) running under IGOR Pro 6.3 for Windows (Wavemetrics), taking time-lapsed 64 × 16 pixel image scans (at 31.25 Hz) for glutamate and 32 × 32 pixel image scans (at 15.625 Hz) for calcium imaging. For visualizing morphology, 512 × 512 pixel images were acquired. For light stimulation, we focused a DLP projector (K11, Acer) through the objective, fitted with band-pass-filtered light-emitting diodes (LEDs) (green, 578 BP 10; and blue, HC 405 BP 10, AHF/Croma) to match the spectral sensitivity of mouse M- and S-opsins. LEDs were synchronized with the microscope’s scan retrace. Stimulator intensity (as photoisomerization rate, 103 P* per s per cone) was calibrated as described previously52 to range from 0.6 and 0.7 (black image) to 18.8 and 20.3 for M- and S-opsins, respectively. Owing to technical limitations, intensity modulations were weakly rectified below 20% brightness. An additional, steady illumination component of ~104 P* per s per cone was present during the recordings because of two-photon excitation of photopigments (for detailed discussion, see refs 52 and 53). The light stimulus was centred before every experiment, such that its centre corresponded to the centre of the recording field. For all experiments, the tissue was kept at a constant mean stimulator intensity level for at least 15 s after the laser scanning started and before light stimuli were presented. Because the stimulus was projected though the objective lens, the stimulus projection plane shifted when focusing at different IPL levels. We therefore quantified the resulting blur of the stimulus at the level of photoreceptor outer segments. We found that a vertical shift of the imaging plane by 50 μm blurred the image only slightly (2% change in pixel width), indicating that different IPL levels (total IPL thickness = 41.6 ± 4.8 μm, mean ± s.d., n = 20 scans) can be imaged without substantial change in stimulus quality. Four types of light stimuli were used (Fig. 1): (i) full-field (600 × 800 μm) and (ii) local (100 μm in diameter) chirp stimuli consisting of a bright step and two sinusoidal intensity modulations, one with increasing frequency (0.5–8 Hz) and one with increasing contrast; (iii) 1-Hz light flashes (500 μm in diameter, 50% duty cycle); and (iv) binary dense noise (20 × 15 matrix of 20 × 20 μm pixels; each pixel displayed an independent, balanced random sequence at 5 Hz for 5 min) for space–time receptive field mapping. In a subset of experiments, we used three additional stimuli: (v) a ring noise stimulus (10 annuli with increasing diameter, each annulus 25 μm wide), with each ring’s intensity determined independently by a balanced 68-s random sequence at 60 Hz repeated four times; (vi) a surround chirp stimulus (annulus; full-field chirp sparing the central 100 μm corresponding to the local chirp); and (vii) a spot noise stimulus (100 or 500 μm in diameter; intensity modulation like ring noise) flickering at 60 Hz. For all drug experiments, we showed in addition: (viii) a stimulus consisting of alternating 2-s full-field and local light flashes (500 and 100 μm in diameter, respectively). All stimuli were achromatic, with matched photo-isomerization rates for mouse M- and S-opsins. For each scan field, we used the relative positions of the inner (ganglion cell layer) and outer (inner nuclear layer) blood vessel plexus to estimate IPL depth. To relate these blood vessel plexi to the ChAT bands, we performed separate experiments in ChAT:Cre × Ai9tdTomato mice. High-resolution stacks throughout the inner retina were recorded in the ventronasal retina. The stacks were then first corrected for warping of the IPL using custom-written scripts in IGOR Pro. In brief, a raster of markers (7 × 7) was projected in the x–y plane of the stack and for each marker the z positions of the On ChAT band were manually determined. The point raster was used to calculate a smoothed surface, which provided a z offset correction for each pixel beam in the stack. For each corrected stack, the z profiles of tdTomato and SR101 labelling were extracted by manually drawing ROIs in regions where only blood vessel plexi or the ChAT bands were visible. The two profiles were then matched such that 0 corresponded to the inner vessel peak and 1 corresponded to the outer vessel peak. We averaged the profiles of n = 9 stacks from three mice and determined the IPL depth of the On and Off ChAT bands to be 0.48 ± 0.011 and 0.77 ± 0.014 AU (mean ± s.d.), respectively. The s.d. corresponds to an error of 0.45 and 0.63 μm for the On and Off ChAT bands, respectively. In the following, recording depths relative to blood vessel plexi were transformed into IPL depths relative to ChAT bands for all scan fields (Fig. 1b), with 0 corresponding to the On ChAT band and 1 corresponding to the Off ChAT band. Data analysis was performed using Matlab 2014b/2015a (Mathworks Inc.) and IGOR Pro. Data were organized in a custom written schema using the DataJoint for Matlab framework (github.com/datajoint/datajoint-matlab)54. Regions-of-interest (ROIs) were defined automatically by a custom correlation-based algorithm in IGOR Pro. First, the activity stack in response to the dense noise stimulus (64 × 16 × 10,000 pixels) was de-trended by high-pass filtering the trace of each individual pixel above ~0.1 Hz. For the 100 best-responding pixels in each recording field (highest s.d. over time), the trace of each pixel was correlated with the trace of every other pixel in the field. Then, the correlation coefficient (ρ) was plotted against the distance between the two pixels and the average across ROIs was computed (Extended Data Fig. 1a). A scan field-specific correlation threshold (ρ ) was determined by fitting an exponential between the smallest distance and 5 μm (Extended Data Fig. 1b). ρ was defined as the correlation coefficient at λ, where λ is the exponential decay constant (space constant; Extended Data Fig. 1b). Next, we grouped neighbouring pixels with ρ > ρ into one ROI (Extended Data Fig. 1c–e). To match ROI sizes with the sizes of BC axon terminals, we restricted ROI diameters (estimated as effective diameter of area-equivalent circle) to range between 0.75 and 4 μm (Extended Data Fig. 1b, g). For validation, the number of ROIs covering single axon terminals was quantified manually for n = 31 terminals from n = 5 GCaMP6-expressing BCs (Extended Data Figs 1g, 2a–c). The glutamate (or calcium) traces for each ROI were extracted (as ΔF/F) using the image analysis toolbox SARFIA for IGOR Pro55 and resampled at 500 Hz. A stimulus time marker embedded in the recorded data served to align the traces relative to the visual stimulus with 2 ms precision. For this, the timing for each ROI was corrected for sub-frame time-offsets related to the scanning. Stimulus-aligned traces for each ROI were imported into Matlab for further analysis. For the chirp and step stimuli, we down-sampled to 64 Hz for further processing, subtracted the baseline (median of first 20–64 samples), computed the median activity r(t) across stimulus repetitions (5 repetitions for chirp, >30 repetitions for step) and normalized it such that . For dye-injected BCs, axon terminals were labelled manually using the image analysis toolbox SARFIA for IGOR Pro. Then, ROIs were estimated as described above and assigned to the reconstructed cell, if at least two pixels overlapped with the cell´s axon terminals. We mapped the receptive field from the dense noise stimulus and the response kernel to the ring noise stimulus by computing the glutamate/calcium transient-triggered average. To this end, we used Matlab’s findpeaks function to detect the times t at which transients occurred. We set the minimum peak height to 1 s.d., where the s.d. was robustly estimated using: We then computed the glutamate/calcium transient-triggered average stimulus, weighting each sample by the steepness of the transient: Here, is the stimulus, τ is the time lag and M is the number of glutamate/calcium events. For the receptive field from the dense noise stimulus, we smoothed this raw receptive field estimate using a 3 × 3-pixel Gaussian window for each time lag separately and used singular value decomposition (SVD) to extract temporal and spatial receptive field kernels. To extract the receptive field’s position and scale, we fitted it with a 2D Gaussian function using Matlab’s lsqcurvefit. Receptive field quality (Qi ) was measured as one minus the fraction of residual variance not explained by the Gaussian fit , Response quality index. To measure how well a cell responded to a stimulus (local and full-field chirp, flashes), we computed the signal-to-noise ratio where C is the T by R response matrix (time samples by stimulus repetitions), while and denote the mean and variance across the indicated dimension, respectively2. For further analysis, we used only cells that responded well to the local chirp stimulus (Qi  > 0.3) and resulted in good receptive fields (Qi  > 0.2). Polarity index. To distinguish between On and Off BCs, we calculated the polarity index (POi) from the step response to local and full-field chirp, respectively, as where b = 2 s (62 samples). For cells responding solely during the On-phase of a step of light POi = 1, while for cells only responding during the step’s Off-phase POi = −1. Opposite polarity index. The number of opposite polarity events (OPi) was estimated from individual trials of local and full-field chirp step responses (first 6 s) using IGOR Pro’s FindPeak function. Specifically, we counted the number of events that occurred during the first 2 s after the step onset and offset for Off and On BCs, respectively. For each trial the total number of events was divided by the number of stimulus trials. If OPi = 1, there was on average one opposite polarity event per trial. High frequency index. The high frequency index (HFi) was used to quantify spiking (compare with ref. 28) and was calculated from responses to individual trials of the local and full-field chirps. For the first 6 s of each trial, the frequency spectrum was calculated by fast Fourier transform (FFT) and spectra were averaged across trials for individual ROIs. Then, HFi = log(F /F ), where F and F are the mean power between 0.5–1 Hz and 2–16 Hz, respectively. Response transience index. The step response (first 6 s) of local and full-field chirps was used to calculate the response transience (RTi). Traces were up-sampled to 500 Hz and the response transience was calculated as where α = 400 ms is the read-out time following the peak response t . For a transient cell with complete decay back to baseline RTi = 1, whereas for a sustained cell with no decay RTi = 0. Response plateau index. Local and full-field chirp responses were up-sampled to 500 Hz and the plateau index (RPi) was determined as: with the read-out time α = 2 s. A cell showing a sustained plateau has an RPi = 1, while for a transient cell RPi = 0. Tonic release index. Local chirp frequency and contrast responses were up-sampled to 500 Hz and the baseline (response to 50% contrast step) was subtracted. Then, the glutamate traces were separated into responses above (r ) and below (r ) baseline and the tonic release index (TRi) was determined as: For a cell with no tonic release TRi = 0, whereas for a cell with maximal tonic release TRi = 1. Response delay. The response delay (t ) was defined as the time from stimulus onset/offset until response onset and was calculated from the up-sampled local chirp step response. Response onset (t ) and delay (t ) were defined as and , respectively. We used sparse principal component analysis, as implemented in the SpaSM toolbox by K. Sjöstrang et al. (http://www2.imm.dtu.dk/projects/spasm/), to extract sparse response features from the mean responses across trials to the full-field (12 features) and local chirp (6 features), and the step stimulus (6 features) (as described in ref. 2; see Extended Data Fig. 4b). Before clustering, we standardized each feature separately across the population of cells. BC-terminal volume profiles were obtained from electron microscopic reconstructions of the inner retina6, 10. To isolate synaptic terminals, we removed those parts of the volume profiles that probably corresponded to axons. We estimated the median axon density for each type from the upper 0.06 units of the IPL and subtracted twice that estimate from the profiles, clipping at zero. Profiles were smoothed with a Gaussian kernel (s.d. = 0.14 units IPL depth) to account for jitter in depth measurements of two-photon data. For the GluMI cell, we assumed the average profile of CBC types 1 and 2. We used a modified mixture of Gaussian model56 to incorporate the prior knowledge from the anatomical BC profiles. For each ROI i with IPL depth , we define a prior over anatomical types c as Where IPL(d,c) is the IPL terminal density profile as a function of depth and anatomical cell type. For example, all ROIs of a scan field taken at an IPL depth of 1.7 were likely to be sorted into clusters for CBC types 1 and 2, while a scan field taken at a depth of 0 received a bias for CBC types 5–7 (Extended Data Fig. 4a). The parameters of the mixture of Gaussian model are estimated as usual, with the exception of estimating the posterior over clusters. Here, the mixing coefficients are replaced by the prior over anatomical types, resulting in a modified update formula for the posterior: All other updates remain the same as for the standard mixture of Gaussians algorithm57. We constrained the covariance matrix for each component to be diagonal, resulting in 48 parameters per component (24 for the mean, 24 for the variances). We further regularized the covariance matrix by adding a constant (10−5) to the diagonal. The clustering was based on a subset (~83%) of the data (the first 11,101 recorded cells). The remaining ROIs were then automatically allocated to the established clustering (n = 2,210 ROIs). For each pair of clusters, we computed the direction in feature space that optimally separated the clusters , where are the cluster means in feature space and is the pooled covariance matrix. We projected all data on this axis and standardized the projected data according to cluster 1 (that is, subtracted the projected mean of cluster 1 and divided by its s.d.). We computed d′ as a measure of the separation between the clusters: , where are the means of the two clusters in the projected, normalized space. We also performed a more constrained clustering in which we divided the IPL into five portions without overlap based on stratification profiles. We then clustered each zone independently using a standard mixture of Gaussian approach and a cluster number determined by the number of BC types expected in each portion. The correlation between the cluster means of our clustering and the more constrained clustering was 0.97 for the full-field chirp traces, indicating high agreement. Field entropy. Field entropy (S ) was used as a measure of cluster heterogeneity within single recording fields and was defined as  , where i is the number of clusters in one recording field and p corresponds to the number of ROIs assigned to the ith cluster. S  = 0 if all ROIs of one recording field are assigned to one cluster and S increases if ROIs are equally distributed across multiple clusters. In general, high field-entropy indicates high cluster heterogeneity within a single field. Analysis of response diversity. To investigate the similarity of local and full-field chirp responses across clusters (Fig. 3), we determined the linear correlation coefficient between any two cluster pairs. The analysis was performed on cluster means. For every cluster, correlation coefficients were averaged across clusters with the same and opposite response polarity, respectively. We used principal component analysis (using Matlab’s pca function) to obtain a 2D embedding of the mean cluster responses. The principal component analysis was computed on all 14 local and 14 full-field cluster means. If not stated otherwise, the non-parametric Wilcoxon signed-rank test was used for statistical testing. Pharmacology. To analyse drug-induced effects on BC clusters (Fig. 4, Extended Data Figs 7, 8), response traces and receptive fields of ROIs in one recording field belonging to the same cluster were averaged if there were at least 5 ROIs assigned to this cluster. Spatial receptive fields were aligned relative to the pixel with the highest s.d. before averaging. Centre-surround properties. To estimate the signal-to-noise ratio of ring maps of single ROIs, we extracted temporal centre and surround kernels and normalized the respective kernel to the s.d. of its baseline (first 50 samples). For further analysis, we included only ROIs with |Peak | > 12 s.d. and |Peak | > 7 s.d. Ring maps of individual ROIs were then aligned relative to its peak centre activation and averaged across ROIs assigned to one cluster. To isolate the BC surround, the centre rings (first two rings) were cut and the surround time and space components were extracted by singular value decomposition (SVD). The surround space component was then extrapolated across the centre by fitting a Gaussian and an extrapolated surround map was generated. To isolate the BC centre, the estimated surround map was subtracted from the average map and centre time and space components were extracted by SVD. The estimated centre and surround maps were summed to obtain a complete description of the centre–surround structure of BC receptive fields. Across clusters, the estimated centre–surround maps captured 92.5 ± 1.9% of the variance of the original map. Owing to the low signal-to-noise ratio, the temporal centre–surround properties of individual ROIs were extracted as described above using the centre and surround space kernels obtained from the respective cluster average. The 1D Gaussian fits of centre and surround space activation were used to calculate centre and surround ratios (CSRs) for various stimulus sizes. Specifically, the CSR was defined as where S corresponds to the stimulus radius and ranged from 10 to 500 μm, with a step size dx of 1 μm. Time kernels for different stimulus sizes were generated by linearly mixing centre and surround time kernels, weighted by the respective CSR. BC spectra. The temporal spectra of BC clusters were calculated by Fourier transform of the time kernels estimated for a local (100 μm in diameter) and full-field (500 μm in diameter) light stimulus (see centre–surround properties). Owing to the lower SNR of time kernels estimated for the full-field stimulus, kernels were cut 100 ms before and at the time point of response, still capturing 86.7 ± 14.7% of the variance of the original kernel. The centre of mass (Centroid) was used to characterize spectra of different stimulus sizes and was determined as where x(n) corresponds to the magnitude and f(n) represents the centre frequency of the nth bin. Surround chirp and spot noise data. To investigate the effects of surround-only activation and stimulus size on temporal encoding properties across BC clusters, response traces and estimated kernels of ROIs in one recording field belonging to the same cluster were averaged if there were at least five ROIs assigned to this cluster. The spectra for kernels estimated from local and full-field spot noise stimuli were calculated as described above. Time kernel correlation. To analyse the similarity of temporal kernels estimated for a specific stimulus size (Fig. 5i, j), we computed the linear correlation coefficient of each kernel pair from clusters with the same response polarity. We then calculated the average correlation coefficient for every cluster (Fig. 5i) and across all cluster averages (Fig. 5j). Data (original data and clustering results) as well as Matlab code are available from http://www.retinal-functomics.org.


News Article | March 2, 2017
Site: www.prweb.com

Brella Productions starts its fourth year of sponsoring Meeting Professionals International Chicago Area Chapter (MPI-CAC) events with NEXT’17, the organization’s networking, education, experience, and technology conference. The day-long symposium for meeting planners, event producers, and marketing professionals will include educational breakout sessions and an opening keynote address from Kelly Leonard. Leonard is the Executive Director of The Second City Works and former Associate Producer of The Second City. NEXT’17 will serve as the beginning of some exciting firsts for both MPI-CAC and Brella. For the first time, MPI-CAC will be presenting NEXT’17 in partnership with the International Live Events Association (ILEA). ILEA is a global association that represents creative event professionals, and will contribute innovative ideation and new educational experiences to ILEA members and NEXT attendees. Brella will co-produce the NEXT’17 conference with AV Chicago. Brella will deliver the creative support, including the conference’s overall look and feel, as well as presentation templates for the breakouts and keynote sessions. AV Chicago will provide the AV gear and technological support. Andrew Brode, President of AV Chicago, and Brella’s Event Operations Manager, Cary Williams, are both MPI-CAC gala committee members. “We’re delighted to be partnering with MPI-CAC and AV Chicago,” stated Williams. “MPI-CAC is an amazing association for meeting planners and suppliers. By having events such as NEXT’17, MPI-CAC continues to hold up the standard for education and planning strategies in the event industry. I’m excited to showcase Brella’s design and event departments to all of the MPI members, while helping this influential conference run more smoothly.” MPI-CAC’s NEXT’17 will take place at the Holiday Inn in Merchandise Mart, downtown Chicago.


News Article | February 22, 2017
Site: globenewswire.com

Today, February 22nd, 2017, Medical Prognosis Institute A/S held an Extraordinary Shareholders' Meeting. A summary of the resolutions follows below. All resolutions were passed with the required majority. Further information regarding the guidelines approved by the Extraordinary Shareholders' Meeting can be found in the notice to convene extraordinary general meeting regarding adoption of guidelines regarding the application of incentive schemes to the Board of Directors and the executive management on February 7th, 2017, and in the complete proposals for the Extraordinary Shareholders' Meeting. Approval of guidelines regarding the application of incentive schemes to the board of directors and the executive management of the company. The guidelines were approved unanimously by all votes represented at the general meeting. This information is information that Medical Prognosis Institute A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on February 22nd 2017. About MPI's multiple biomarker called Drug Response Predictor - DRP(TM) MPI's DRP(TM) is a tool for developing tumor-derived genetic signatures to predict which cancer patients are high likely to respond to a given anti-cancer product. The DRP(TM) has been tested in 37 trials, where 29 trials showed that drug-specific DRP(TM) Biomarkers could predict which patients responded well to the treatment. The DRP(TM) platform has amongst others been externally validated and published in collaboration with leading statisticians at the MD Anderson Cancer Center. The DRP(TM) method can be used to design the Clinical Development Plan, i.e. to select which indications are relevant for a given   anti-cancer drug.  In addition to this, the individual genetic patterns of patients can be analyzed as part of a screening procedure for a clinical trial to ensure inclusion of patients with a high likelihood of response to the drug. DRP(TM) builds on comparison between sensitive and resistant human cancer cell lines, including genomic information from cell lines combined with clinical tumor biology and clinical correlates in a systems biology network. The DRP(TM) is a Big Data tool based on messenger RNA. The DRP(TM) platform can be used in all cancer types, and has been patented for more than 70 anti-cancer drugs in the US. About MPI Medical Prognosis Institis a publicly traded international company specialized in improving cancer patients lives by developing Personalized Medicine using its unique DRP(TM) technology. MPI's exceptional opportunity to personalize cancer treatment - begins with Breast Cancer moving on to Multiple Myeloma and Prostate Cancer as the first steps. MPI's DRP(TM) tool has shown its ability to separate patients who benefit and who do not benefit from a specific cancer treatment. This has been shown in as many as 29 out of 37 trials, and covers more than 80 anti-cancer treatments in a wide range of cancer indications. MPI has built a significant large database with over 1,000 screened breast cancer patients and is building up a database in Multiple Myeloma to be followed by Prostate cancer in collaboration with oncologists and hematologists throughout Denmark. For further information, please contact: CEO, Peter Buhl Jensen, Adjunct Professor, MD, Ph.D.                              Ulla Hald Buhl, IR & Communication E-mail: pbj@medical-prognosis.com                                                            E-mail: uhb@medical-prognosis.com Telephone: +45 21 60 89 22                                                                         Telephone +45 21 70 10 49


News Article | February 22, 2017
Site: globenewswire.com

Today, February 22nd, 2017, Medical Prognosis Institute A/S held an Extraordinary Shareholders' Meeting. A summary of the resolutions follows below. All resolutions were passed with the required majority. Further information regarding the guidelines approved by the Extraordinary Shareholders' Meeting can be found in the notice to convene extraordinary general meeting regarding adoption of guidelines regarding the application of incentive schemes to the Board of Directors and the executive management on February 7th, 2017, and in the complete proposals for the Extraordinary Shareholders' Meeting. Approval of guidelines regarding the application of incentive schemes to the board of directors and the executive management of the company. The guidelines were approved unanimously by all votes represented at the general meeting. This information is information that Medical Prognosis Institute A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on February 22nd 2017. About MPI's multiple biomarker called Drug Response Predictor - DRP(TM) MPI's DRP(TM) is a tool for developing tumor-derived genetic signatures to predict which cancer patients are high likely to respond to a given anti-cancer product. The DRP(TM) has been tested in 37 trials, where 29 trials showed that drug-specific DRP(TM) Biomarkers could predict which patients responded well to the treatment. The DRP(TM) platform has amongst others been externally validated and published in collaboration with leading statisticians at the MD Anderson Cancer Center. The DRP(TM) method can be used to design the Clinical Development Plan, i.e. to select which indications are relevant for a given   anti-cancer drug.  In addition to this, the individual genetic patterns of patients can be analyzed as part of a screening procedure for a clinical trial to ensure inclusion of patients with a high likelihood of response to the drug. DRP(TM) builds on comparison between sensitive and resistant human cancer cell lines, including genomic information from cell lines combined with clinical tumor biology and clinical correlates in a systems biology network. The DRP(TM) is a Big Data tool based on messenger RNA. The DRP(TM) platform can be used in all cancer types, and has been patented for more than 70 anti-cancer drugs in the US. About MPI Medical Prognosis Institis a publicly traded international company specialized in improving cancer patients lives by developing Personalized Medicine using its unique DRP(TM) technology. MPI's exceptional opportunity to personalize cancer treatment - begins with Breast Cancer moving on to Multiple Myeloma and Prostate Cancer as the first steps. MPI's DRP(TM) tool has shown its ability to separate patients who benefit and who do not benefit from a specific cancer treatment. This has been shown in as many as 29 out of 37 trials, and covers more than 80 anti-cancer treatments in a wide range of cancer indications. MPI has built a significant large database with over 1,000 screened breast cancer patients and is building up a database in Multiple Myeloma to be followed by Prostate cancer in collaboration with oncologists and hematologists throughout Denmark. For further information, please contact: CEO, Peter Buhl Jensen, Adjunct Professor, MD, Ph.D.                              Ulla Hald Buhl, IR & Communication E-mail: pbj@medical-prognosis.com                                                            E-mail: uhb@medical-prognosis.com Telephone: +45 21 60 89 22                                                                         Telephone +45 21 70 10 49


News Article | February 22, 2017
Site: globenewswire.com

Today, February 22nd, 2017, Medical Prognosis Institute A/S held an Extraordinary Shareholders' Meeting. A summary of the resolutions follows below. All resolutions were passed with the required majority. Further information regarding the guidelines approved by the Extraordinary Shareholders' Meeting can be found in the notice to convene extraordinary general meeting regarding adoption of guidelines regarding the application of incentive schemes to the Board of Directors and the executive management on February 7th, 2017, and in the complete proposals for the Extraordinary Shareholders' Meeting. Approval of guidelines regarding the application of incentive schemes to the board of directors and the executive management of the company. The guidelines were approved unanimously by all votes represented at the general meeting. This information is information that Medical Prognosis Institute A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on February 22nd 2017. About MPI's multiple biomarker called Drug Response Predictor - DRP(TM) MPI's DRP(TM) is a tool for developing tumor-derived genetic signatures to predict which cancer patients are high likely to respond to a given anti-cancer product. The DRP(TM) has been tested in 37 trials, where 29 trials showed that drug-specific DRP(TM) Biomarkers could predict which patients responded well to the treatment. The DRP(TM) platform has amongst others been externally validated and published in collaboration with leading statisticians at the MD Anderson Cancer Center. The DRP(TM) method can be used to design the Clinical Development Plan, i.e. to select which indications are relevant for a given   anti-cancer drug.  In addition to this, the individual genetic patterns of patients can be analyzed as part of a screening procedure for a clinical trial to ensure inclusion of patients with a high likelihood of response to the drug. DRP(TM) builds on comparison between sensitive and resistant human cancer cell lines, including genomic information from cell lines combined with clinical tumor biology and clinical correlates in a systems biology network. The DRP(TM) is a Big Data tool based on messenger RNA. The DRP(TM) platform can be used in all cancer types, and has been patented for more than 70 anti-cancer drugs in the US. About MPI Medical Prognosis Institis a publicly traded international company specialized in improving cancer patients lives by developing Personalized Medicine using its unique DRP(TM) technology. MPI's exceptional opportunity to personalize cancer treatment - begins with Breast Cancer moving on to Multiple Myeloma and Prostate Cancer as the first steps. MPI's DRP(TM) tool has shown its ability to separate patients who benefit and who do not benefit from a specific cancer treatment. This has been shown in as many as 29 out of 37 trials, and covers more than 80 anti-cancer treatments in a wide range of cancer indications. MPI has built a significant large database with over 1,000 screened breast cancer patients and is building up a database in Multiple Myeloma to be followed by Prostate cancer in collaboration with oncologists and hematologists throughout Denmark. For further information, please contact: CEO, Peter Buhl Jensen, Adjunct Professor, MD, Ph.D.                              Ulla Hald Buhl, IR & Communication E-mail: pbj@medical-prognosis.com                                                            E-mail: uhb@medical-prognosis.com Telephone: +45 21 60 89 22                                                                         Telephone +45 21 70 10 49


News Article | February 24, 2017
Site: globenewswire.com

Today, February 24th, 2017, Medical Prognosis Institute A/S held an Extraordinary Shareholders' Meeting to re-establish a previously granted warrant program. A summary of the resolutions follows below. All resolutions were passed with the required majority. Further information regarding the guidelines approved by the Extraordinary Shareholders' Meeting can be found in the notice to convene extraordinary general meeting regarding Grant of warrants to members of the board of directors and members of the executive management on February 7th, 2017, and in the complete proposals for the Extraordinary Shareholders' Meeting. Grant of warrants to members of the board of directors and members of the executive management of the Company under the warrant terms contained in appendix 3 and 4 to the articles of association. The grant of warrants were approved unanimously by all votes represented at the general meeting. This information is information that Medical Prognosis Institute A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on February 24th 2017. About MPI's multiple biomarker called Drug Response Predictor - DRP(TM) MPI's DRP(TM) is a tool for developing tumor-derived genetic signatures to predict which cancer patients are high likely to respond to a given anti-cancer product. The DRP(TM) has been tested in 37 trials, where 29 trials showed that drug-specific DRP(TM) Biomarkers could predict which patients responded well to the treatment. The DRP(TM) platform has amongst others been externally validated and published in collaboration with leading statisticians at the MD Anderson Cancer Center. The DRP(TM) method can be used to design the Clinical Development Plan, i.e. to select which indications are relevant for a given   anti-cancer drug.  In addition to this, the individual genetic patterns of patients can be analyzed as part of a screening procedure for a clinical trial to ensure inclusion of patients with a high likelihood of response to the drug. DRP(TM) builds on comparison between sensitive and resistant human cancer cell lines, including genomic information from cell lines combined with clinical tumor biology and clinical correlates in a systems biology network. The DRP(TM) is a Big Data tool based on messenger RNA. The DRP(TM) platform can be used in all cancer types, and has been patented for more than 70 anti-cancer drugs in the US. About MPI Medical Prognosis Institute is a publicly traded international company specialized in improving cancer patients lives by developing Personalized Medicine using its unique DRP(TM) technology. MPI's exceptional opportunity to personalize cancer treatment - begins with Breast Cancer moving on to Multiple Myeloma and Prostate Cancer as the first steps. MPI's DRP(TM) tool has shown its ability to separate patients who benefit and who do not benefit from a specific cancer treatment. This has been shown in as many as 29 out of 37 trials, and covers more than 80 anti-cancer treatments in a wide range of cancer indications. MPI has built a significant large database with over 1,000 screened breast cancer patients and is building up a database in Multiple Myeloma to be followed by Prostate cancer in collaboration with oncologists and hematologists throughout Denmark. For further information, please contact: CEO, Peter Buhl Jensen, Adjunct Professor, MD, Ph.D.                              Ulla Hald Buhl, IR & Communication E-mail: pbj@medical-prognosis.com                                                             E-mail: uhb@medical-prognosis.com Telephone: +45 21 60 89 22                                                                         Telephone +45 21 70 10 49


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 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.


ATLANTA--(BUSINESS WIRE)--Stibo Systems, the global leader in multidomain Master Data Management (MDM) solutions, today announced that it has been named a Top Ten Best in Class Provider for Product Information Management (PIM) in Consumer Goods Technology (CGT) Magazine 2017 Readers’ Choice Award. Determined by consumer goods influencers and business-decision makers, this is the fourth time Stibo Systems has been recognized by CGT for its innovative technology and its ability to help manufacturers drive their digital transformation. Omnichannel consumer expectations and industry regulations are forcing manufacturers to manage data in an entirely new way. The ability to consistently publish accurate product information, labeling data and digital assets is proving vital to maintaining brand consistency and consumer transparency. Simply having clean and centralized data is not enough as CG companies must accomplish this while maintaining compliance regarding sourcing, ingredients, labeling and packaging, as well as accountability in the event of a product recall. Using Stibo Systems’ Master Data Management solution STEP, CG manufacturers can improve profitability, performance and more effectively manage your global brands. “In these modern times, you can’t run a successful, competitive consumer goods business without forging a solid foundation in technology. And you can’t build that foundation without enlisting help from reliable technology and service partners,” said Ali Orr of CGT. “From ERP to Retail Execution and every function in between, CGT’s 17th annual Readers’ Choice Survey shines a spotlight on the industry’s preferred solution and service providers. The resulting Top Providers lists in 15 mission-critical categories can serve as a valuable investment guide for your company’s future business and IT decisions.” Each year, CGT Magazine surveys some of the most progressive business leaders and consumer good professionals across businesses to identify their most valued solution and service providers across a number of categories. The Readers’ Choice winners are those organizations with the best overall scores for the solutions and/or services they offer to consumer goods organizations. “Being recognized as a 2017 CGT Readers’ Choice winner is especially rewarding because the best overall scores are determined by responses from hundreds of executives and employees who work with these tools daily,” said Todd Callen, EVP of North America, Stibo Systems. “Publishing data and digital assets across online and offline channels is now a necessity for proper omnichannel brand management, but having clean and centralized data is not enough. STEP helps CG companies accomplish this by creating a single repository for all critical data, ensuring synchronization of proper systems across the organization while applying end-to-end process discipline to ensure traceability for compliance.” Tweet this: “News @StiboSystems named best in class #PIM provider in @CGTMagazine annual Reader’s Choice Award. #MPI #MDM #masterdatamanagement #productinformationmanagement” About Stibo Systems Stibo Systems is the global leader in multidomain Master Data Management (MDM) solutions. Industry leaders rely on Stibo Systems to provide cross-channel consistency by linking product and customer data, suppliers and other organizational assets. This enables businesses to make more effective decisions, improve sales and build shareholder value. During the last 30 years, Stibo Systems has helped hundreds of companies to develop a trusted source of operational information. A privately held subsidiary of the Stibo A/S group, which was originally founded in 1794, Stibo Systems’ corporate headquarters is located in Aarhus, Denmark. For more information, visit www.stibosystems.com.


News Article | February 22, 2017
Site: www.marketwired.com

WINNIPEG, MB--(Marketwired - February 22, 2017) - MADD Canada and Manitoba Public Insurance (MPI) are teaming up to educate Manitoba students about the dangers and consequences of impaired driving with a dynamic new educational film. MADD Canada's 2016-2017 School Assembly Program, titled In the Blink of an Eye, is touring schools around the province from February to June. A special screening is being held for students and staff at River East Collegiate in Winnipeg on February 23 to highlight the program and its delivery around the province. Media are welcome to attend the screening and speak with special guests, students and staff. In the Blink of an Eye tells the story of best friends Gabby and Sarah. One night, as the girls prepare to go to a party, they are joined by Sarah's boyfriend Dylan, and his friend Asif. Sarah drinks and smokes pot with Dylan and Asif, while Gabby declines. Dylan, anxious to get to the party, decides to drive rather than wait for a cab. His friends strongly object. A very upset Sarah calls 911 to report Dylan. Even though Gabby, Asif and Sarah all do the right thing, a tragic twist of fate ends a friendship and ruins many lives. The fictional story is followed by the powerful real-life accounts of three victims of impaired driving. Road crashes are the number one cause of death among young people in Canada, and alcohol and/or drugs are involved in more than 50% of those crashes. Every year, MADD Canada produces a new film to educate young people about the risks of impaired driving and empower them to make safe and responsible choices. MPI's support is critical in delivering the sober driving message to thousands of Manitoba students each year. As a Provincial Sponsor of the 2016-2017 School Assembly Program, MPI is directly sponsoring 109 presentations of In the Blink of an Eye at schools throughout the province this year, including 24 in northern Manitoba. For more information, or to check out a clip from In the Blink of an Eye, visit: http://madd.ca/pages/programs/youth-services/school-programs/in-the-blink-of-an-eye/

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