Chart(GTLS) - 2024 Q1 - Quarterly Results

Financial Performance - First quarter 2024 orders reached $1.12 billion, a 4.3% increase, contributing to a record backlog of $4.33 billion[4] - Sales for the first quarter 2024 were $950.7 million, marking a 17.4% increase year-over-year, with pro forma organic growth of 18.3% after accounting for a foreign exchange headwind of (0.9%)[3] - Reported gross margin was 31.8%, an increase of 260 basis points compared to the first quarter 2023, contributing to an operating income of $112.9 million[11] - Adjusted EBITDA for the first quarter 2024 was $212.2 million, representing 22.3% of sales, an increase of 550 basis points year-over-year[3] - Sales for Q1 2024 reached $950.7 million, a 78.5% increase from $531.5 million in Q1 2023[30] - Gross profit for Q1 2024 was $302.3 million, compared to $149.3 million in Q1 2023, reflecting a gross margin improvement[30] - Net income attributable to Chart Industries, Inc. for Q1 2024 was $11.3 million, a significant recovery from a net loss of $15.0 million in Q1 2023[30] - Basic earnings per share from continuing operations for Q1 2024 was $0.16, compared to a loss of $0.54 in Q1 2023[30] - Operating income for Q1 2024 was $112.9 million, up from $34.6 million in Q1 2023[30] - Consolidated sales for the three months ended March 31, 2024, reached $950.7 million, a significant increase from $531.5 million in the same period of 2023, representing a growth of 78.6%[40] - Gross profit for the consolidated operations was $302.3 million for the three months ended March 31, 2024, compared to $149.3 million in the prior year, resulting in a gross profit margin of 31.8%, up from 28.1%[40] - Orders for consolidated operations totaled $1,121.6 million for the three months ended March 31, 2024, compared to $740.7 million in the same period of 2023, indicating a year-over-year increase of 51.4%[44] - Operating income for consolidated operations was $112.9 million for the three months ended March 31, 2024, compared to $34.6 million in the same period of 2023, reflecting a substantial increase of 226.4%[40] - Adjusted earnings per common share for Q1 2024 was $1.49, compared to $1.38 in Q1 2023 and $2.25 in Q4 2023[47] - The company reported a total EBITDA of $175.3 million for Q1 2024, significantly higher than $65.8 million in Q1 2023[55] - Adjusted EBITDA as a percentage of sales for Q1 2024 was 22.3%, indicating strong operational efficiency[58] Cash Flow and Guidance - The company reiterated its full year 2024 sales guidance of $4.7 to $5.0 billion and adjusted EBITDA guidance of $1.175 to $1.30 billion[21] - Free cash flow (FCF) guidance for 2024 is set at $575 million to $625 million, defined as operating cash flow less capital expenditures[21] - The first quarter 2024 recorded a negative free cash flow of $135.7 million due to specific cash outflows, including $24 million for the completion of the Teddy2 facility[17] - The company reported a net cash used in operating activities of $95.1 million for Q1 2024, compared to a cash outflow of $32.1 million in Q1 2023[33] - The company reported a net cash provided by financing activities of $143.9 million for the three months ended March 31, 2024, compared to $1,967.8 million in the same period of 2023[34] - Free cash flow for Q1 2024 was $(135.7) million, a decline from $7.2 million in Q1 2023 and $110.1 million in Q4 2023[49] Operational Capacity and Strategy - The company has 64 global manufacturing locations and over 50 service centers, enhancing its operational capacity[29] - Chart Industries is focused on expanding its technology and services related to liquefied natural gas, hydrogen, and CO2 capture[29] - The company is committed to excellence in environmental, social, and corporate governance (ESG) issues, which is a key part of its strategy[29] - The company anticipates mid-teens organic revenue growth through 2026 and a reported gross profit margin in the mid-30% range by 2026[23] Assets and Liabilities - Cash and cash equivalents at the end of the period were $195.5 million, a slight decrease from $201.1 million at the end of the previous quarter[34] - Total assets increased to $9,247.9 million as of March 31, 2024, compared to $9,102.4 million at the end of 2023, marking a growth of 1.6%[38] - Total liabilities rose to $6,353.6 million as of March 31, 2024, up from $6,163.4 million at the end of 2023, indicating an increase of 3.1%[38] Segment Performance - The company achieved a record gross profit margin of 46.7% in the Repair, Service and Leasing segment, an increase of 1,450 basis points compared to the first quarter 2023[16] - The gross profit margin for the Cryo Tank Solutions segment improved to 20.5% for the three months ended March 31, 2024, compared to 17.4% in the same period of 2023[40] - The sales from Cryo Tank Solutions segment were $205.6 million, while Heat Transfer Systems contributed $255.2 million to the consolidated sales[54] - The company experienced a divestiture impact of $(9.8) million across various segments, which was accounted for in the pro forma sales figures[54]