GTLS - Earnings call transcript Q4 2017

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Operator

Good morning and welcome to the Chart Industries, Incorporated, Fourth Quarter and Full year 2017 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

As a reminder, today's call is being recorded.

You should have already received the company's earnings release that was issued earlier this morning.

received website you at not by access have Chart's visiting www.chartindustries.com. you the may release, it If A telephone March replay following the of today's broadcast of call will the until Thursday, X. conclusion be available in The replay company's release. the information earnings contained is

to we statements you are historical made Before forward-looking are that that in call remind fact, would this statements. the company not begin, like during

expressed Forward-looking statement. to differ results actual events statements or forward-looking involve risks the from and or those uncertainties in that could cause implied materially

Investor could company's that to call the cause update to would results statement. through For of refer website, further in now factors information section turn earnings SEC the and like expressed available statements forward-looking in website conference important materially Chart through the or differ The are company implied over no the www.sec.gov. to forward-looking release to These those I included latest forward-looking actual Jill CFO. from revise risk Evanko, regarding about to any filings please factors the filings Industries' and company's undertakes SEC. the with or or information publicly obligation Relations statements, the the

your may conference. You begin

Jillian C. Evanko

sales EPS for was favorable XX% the ruled XXXX higher the income a the $X.X $X.XX quarter joining XXXX. impact million $X.XX compared to of of website be $XX.X was supplemental our market Relations. $XXX Crystal. adjusted full the in quarter of XXXX XXXX for higher giving note everyone. breakeven that reform on release morning, Hudson reference excluding the the of of is Products. year can share, quarter Net of related reported same you, exhibit under start deck. you X XXXX acquisition adjustments, XX% XXXX as today. of award. to reform, court of Page XXXX. tax discussion trends loss U.S. compared and order fourth Hudson which costs, million, order call. earnings well and current The fourth as we I to to the provide including per important Bill our across to Thank segments quarter reform, Johnson on located fourth a restructuring as by of Adjusted will results in in litigation results included costs throughout period the XXXX. million one-time fourth and tax quarter reflects with given several Thank guidance. XXXX. compared including XXXX. earnings Chinese quarter to from on will included deck million pieces the quarter loss Fourth we In this fourth Then net facilitate $X.XX of refinancing tax press comments of in quarter XXXX fourth I morning's Fourth three supplemental and quarter to quarter and from XXXX as of the an deck begin will our the you for of XXXX results of sales the on Good Starting extinguishment compared $XX.X It a our or overview share year an debt us were a per moving fourth full have impact Investor the Fourth our

shortly. the quarter and We adjusted will full walk through the EPS the impacts year to both

growth storage order around specifics and $XXX.X the This XX.X% margined and order the chemicals. $XX.X our the ended in call. in percent sequential quarter results. by more quarter Hudson, sales First, and throughout details and XXXX from of XXXX. fourth of XXXX both activity $XX.X profit at XXXX margin $XXX.X each from trends inclusive energy million with of Backlog the order provide had distribution year, to $XX.X and in on speak later million, million will D&S the two XX.X% strong quarter's reflects million, gross the primarily Hudson, of additional end increases This sales, quarter was a excluding increased I we financial on of Gross as Hudson. or projects. driven fourth this market sequentially from will down third included for Bill to is lower and

customer to the project. The a on a second test margin and prototype a in sale, phase first lower related concept new to product related large

year XXXX sales full expect increase as total We margin compared percent a XXXX. to and of over increase to charge gross fourth of XXXX, the quarter of of the the first quarter

the full over from XX% $XX or sales the million, Moving Net through acquisition. were share, walk per XXXX of year X, to the was On share Products net sales million $XXX the share. Slide components of full X. XXXX, year year we billion which of $X.XX per for basis $X.XX Hudson an full diluted million compared of XXXX $XX or Slide year included $X.XX, shortly full income earnings an year per XXXX will increase to of and income $XX.X XXXX on was adjusted

China. increases in in natural line Air was product driven increases and continued E&C Cooled by to European Heat processing orders Hudson our package let in results the strength $XX year order XXXX our million in full for than million margin plant billion, order touch resulting of the processing in $X ownership by Slide since from included briefly XXXX, X, SG&A and driven order year gas, moving was higher me gas XXXX. Orders $XXX tanks activity period. and Exchanger Before plant LNG gross in vehicle natural of in intake on in strength orders were strongest order, D&S XXXX, gas activity improved

million any segment full XXXX XX, one-time as a gross sales year year costs, of and Driftwood is court period, of $X.X projects million full unfavorable million XX.X% of of XXXX impacts our XXXX. SG&A $X.X in for over for margin restructuring from for LNG segments' margin million of of of sales $XX.X $XXX as of of restructuring expected costs. restructuring for compared sales $XX.X in $XXX have sales percent ruling of includes of in the with restructuring from projects our project. XXXX of $X.X million, This full the favorable book percent ownership SG&A. we as Tellurian's have of expiration a of restructuring compares million the fees gross of Hudson's well the gross liquefaction as profit approximately $XX costs. three as not the was E&C in gross full year XXXX time $XX million year expand did $XX.X year, actions short-lead did items XXXX inclusive $XXX we above from a and Gross engineering large in of Chinese for sales was of and the million related SG&A XXXX. margin to been for million December and of While contract inclusive unfavorable the percent increase acquisition the to of to on XXXX million work full charges charges. was sales, $X.X Normalizing an of inclusive XX%. $X or of million Hudson our of E&C profit an million would impact With $X.X insurance from several and AirSep margins settlement as for a expected segment, million our as percent a year million complete on XX.X% to each normalized XXXX, XX.X%, gross the of

X% of on decline completion full X% to the as XXXX organic year we line activities, With dollars SG&A our compared restructuring growth. to to recent expect XXXX organic top

for adjustments normalized EPS $X.XX. X see a earnings adjusted to full XXXX. EPS comparing fourth Moving basis, XXXX. and of from XXXX adjusted was share Slide and on the you comparable the of an the basis in XXXX $X.XX deck, XXXX year $X.XX to On in When adjusted grew quarter can per

the the related to complete each $XX.X time are XXXX. of these lead in for not through gross which related at which storage force contributed and was $X of our XXXX, related sales were the fees year quarter These of we Buffalo Bill compared in acquisition an full of the in facility and costs adjust completed contract to segment, savings nature speak the of the million in D, unusually which of reduction of Skaff in and of primarily call. XXXX. Hudson and Restructuring million in consolidation of Georgia sales EPS. a January costs XXXX Briefly the level associated which walking completion of segment acquisition Cryogenics Slide substantially consolidations related VCT third result adjustment and X, of three order from acquisitions Acquisition-related expiration move to completed will of the Respiratory of segments return the $XX first XXXX XXXX. acquisition totaled closed $X.XX of the While with expected costs million $XX.X and these energy on in costs end to at and do well as year $XX.X the the in and as to actions to from later Chinese shown or Vogel margin X was margin $XX.X types approximately to gross the strategic was Skaff replacement Restructuring equipment as million to million to all year-end. quarter which facility The for in annual XXXX's there were costs our chemical were were headquarter through significant announced BioMedical of as in the year-end A million previously short Ohio distribution XXXX.

debt coming of coupon of our quarter, were credit of coupon senior a issued shown at as the $XXX million X% were out X, and We as and million We on per During convertible $XXX million while at notes, line seven-year due recorded secured XXXX refinanced notes $XXX August we well $X.X costs million $XXX million convertible retiring amended which extinguishment a facility. on X% seven-year our extended of as revolving share B. total seven-year $X.XX a revolver. notes, our

in years estimate we million. a disputed $X.X $X.X former court was of million years, sales representative accrued China litigation on that external the awarded Based five contingent liability. prior XXXX, In to the over with claimant our involved prior the Over we China recently a best in received, as were we commissions. ruling

the and XXXX by Slide from the shown which year quarter X, revaluation of result slide U.S. for entities. to totaled one-time tax $XX.X this Flipping impact adjustment the rate new Partially final the this from is benefit The we As the The to the quarter U.S. in one-time year. total fourth expense the driven accrued of million deemed of of EPS additional fourth impact in in million one-time of C. to ruling from through our tax a $XX.X $X.XX the benefit X our million offsetting million million $X.X $X.XX to our EPS deferred on was The of reform. million full ruling, the as benefit full $XX.X left-hand tax liabilities of XX% federal side Slide XXXX. in on for line earnings. the of positive Hudson walks tax tax Products nearly was foreign repatriation related $X.X transition all was $XX.X an

following Guidance Moving Page XXXX reform impacts our on also the outlook execution January impact X and the anticipated XXXX, three the completed full-year guidance tax includes the planning from our acquisition the tax strategy. from X, for to Skaff as XXXX. that The of completed in as well of of includes slide acquisitions deck.

X, recognition the for January accounting the Additionally, the to to the $X.X be billion which anticipated full is billion standard $X.XX we XXXX, Sales full change, expected expect guidance guidance includes revenue year year. range effective the XXXX. in be to of to from of immaterial impact

the of from the XX% XX% of tax costs moving per Jobs weighted restructuring Act, earnings share to Cuts and $X.XX range rate the in be XX.X diluted and Tax adjusted average related share normalized approximately year shares includes from This XX% full expect costs excludes approximately to range per million of outstanding. to our acquisition approximately and effective $X.XX anticipated XX%. We benefit on to any

reduce China which Additionally, XX% reflect our in realized to will tax XX% the XX%. rate to when to rate unrecognized to XX% continues expected tax benefits

actions in to noted be restructuring We It recent occur XXXX. complete. expect in are expect as any material we restructuring that that do should costs not XXXX, our

first not normal with do guidance, quarterly EPS year slower reflects we chart seasonality the our While give a throughout quarter. typical

our of to We million all capital range $XX inclusive requirements. the acquisitions in XXXX be completed expect will for $XX capital of million expenditures

will debt. I our remain strong pay call and and internal our Bill, rules. to core continued the X in our we light we over segment Bill that generation, call the cash on making deployment the handing to touch results down foreign acquisitions leverage turn Before and end repatriate Johnson our and over to in and productivity, focused to for capital of expect flow new million cash and strategy, manufacturing approximately competencies U.S. under reform. briefly XXXX will strategic particular of to times support each of markets. With recent want growth cryogenic engineering on tax net capital $XX investments of fit targeted the acquisitions tax now I trends in to In discuss deploying

William C. Johnson

Jill XXXX. added you, market market are I Thank an in year million supported each trends in their by momentum the highest are good seeing gradually see segments' at of as on following we and quarter building and on we the tons LNG markets in results will update as XXXX. prices three morning fourth everyone. imports years, early LNG the provide LNG Chinese levels In as full XX well Spot indicators.

discussed in As earnings I call, shortly update. the third on our will on D&S quarter touch we

the cautiously Turkey We continue access the five distributors, LNG France, all consumers highest to with strength. Italy We tank be ISO and to European showing optimistic an in market. industrial see in levels LNG securing were from uptick Chinese on import years LNG gas

double the to an to terminals, market in powered fleet of we to bunkering vessels area Additionally, in. LNG continue more in which result drive expected will is marine share XXXX take

of organic $XX.X Now, million our quarter the sales a over segment turning fourth business. and in increase E&C $XX.X of third Hudson. to quarter the XXXX. This energy was chemicals XX% of sequential from included million

million year XXXX, full of revenue. above were E&C XXXX and sales legacy $XX.X E&C $XXX.X $XX.X million XXXX's million, revenue above the for For

demand total orders oil quarter, XX million, increased out have build generating fourth upstream multi-year of the Exchanger with transmission Cooled plants. above infrastructure Air $XX.X and gas gas end During processing gas E&C over were U.S. orders Exchanger closed for natural the seven XX, markets Heat sales million our $X chart Cooled natural months natural strengthened of Heat each. for A past Hudson basis, in to XXXX. demand. of The revenues $XX which with as XXXX drive Hudson and operating of acquisition a year million XX% $XXX.X million to $X.X improved Air contributed performed on period On September EBITDA. and million expected in ownership full income continues

pro Hudson expect We business to air-cooled up year full heat to and our compared forma Chart exchanger the be X% XXXX. year-over-year

for call quarter, global LNG forecasted earnings we driving our balance facility continue in anticipate liquefied will to early the gas and natural during late mentioned orders export be previously As last that into supply demand XXXX XXXX.

applications. generate Our high-level of IPSMR a interest technology mid-scale in continues to number a

the Bechtel Chart on IPSMR equipment During an with Tellurian utilizing quarter project. announced proceed Driftwood the and with process technology to and agreement Chart's

trains Brazed project. a processing XXXX it on Cooled partners to Additionally, Stage quarter E&C Heat proposal the intends EPC activity Exchanger orders. seven expected expansion XXXX. stronger gas and large than scale in natural X for fourth with end started mid-scale to working feed complete from and Aluminum of has is with Cheniere switch slightly the Christi liquefaction Corpus Air two by modular trains Chart to full a of announced on its

of performed XXXX. Our related strong Cofimco trends business driven fourth Hudson of quarter activity fans our to these strong continued well the month have as performance as Tuf-Lite above into generation the by XXXX We first as orders the in Fans Hudson aftermarket power continued in in business Hudson business. in see expectations

booked $XXX.X nitrogen the gas increases XXXX. the looking oxygen quarter by in The Now year packaged and Strengthened combined XX-piece D&S XXXX, industrial million in for with million to equipment, quarter, compared applications quarter levels. LNG trailer railcars, quarter of packaged to We Storage fourth third Americas Europe XXXX. since $XX mobile $XX.X units quarter fourth a at & was XXXX. for D&S XXXX. for of full $XXX.X XXXX third gas of million order quarter received driven industrial for D&S beverage was sales the fourth the Sequentially, this approximately intake the sales sales quarter totaling gas, mobile demand XX% highest In to of million $XX.X in gas. demand million. for business. Strong order sales to fourth quarter we up increased our and Distribution the million contributed increased to $XXX.X in compared business, to D&S the the the orders

Additionally, LNG We some terminal is scale XXXX. in meet Georgia LNG States. we driven vehicle in of food the by expanding as is in in production, double markets. This this trucks our million markets beverage the end economics cleaning, quarter. emission Industrial volumes increased for Applications other in opportunity first provide micro Chart anticipate by A freezing investment over LNG capital United carbonation activity to price to growing and products are carbon Chart capacity expect the in to demand delta activity small the such growth bulk of five capacity bulk dry tanks, in heavy next the LNG of and duty existing demand Europe facility to diesel is technology. global driving fueled growth our leveraging regulations years. $X and COX industrial ice

agricultural stations is X% increasing. XXXX the Additional XXXX. XXXX. up pharmaceutical China D&S in order full intake year continues of signs recovery increases orders demand to and much with show drove vaporization LNG over of

near not positive the year China in D&S noting operating EBITDA It cautiously optimistic margins. level few in is be XXXX full the the do next sales but about activity nearing that China, worth to of – expect continue We in is also it years. to at a near

that and XXXX China XX% of positive in are growth. a supporting while will with the consolidation completion the operating plus achieve income We pleased Chinese D&S facility expect

Skaff point, annual Headquartered X. in Skaff trailers million stationary January As tanks. EBITDA primary completes Jill margins enhanced of approximately which portable providers and Hampshire, Skaff Chart that with of Until the in the mentioned, footprint acquisition repairs The geographic and New majority northeast with equipment projected repair tanks, of industrial August had the XX%. refurbishes many Vogel to has Asia. industrial revenue month is in strategic we areas players, to location Cryogenics the where also over on left completed us. strong other needing U.S. strength VCT LNG it $X order to are tanks refurbishment of United gas lacked the vehicle States out fills a for an global in orders, acquisition the this northeast located. contracts Germany. XXXX major area be Skaff D&S XXXX presence existing of orders. MicroBulk of contributes the was tank segment a The of country by in was gas, previously January acquisition the of for capabilities, our continue our of to This in coverage of and

facility China force continued all completed completed normalized first in quarter XXXX tailwinds SG&A quarter in was open will Full-year medical Finally, in and to above and our revenue in across by driven the $XX.X was record of the of of the third year reduction X% questions. sales on-site compares to million million lines XXXX. in quarter the million instructions growth please including XXXX. gas the organic full-year provide tanks line. increased ageing quarter in it XXXX by of to $XX.X period. up devices in XXXX in in able $X.X will a BioMedical sales generation in stainless inclusive grew in sales growing biomed, for the strengthen onsite and restructuring pollution I particular $X.X for all Reduction now categories driven the need anticipate product consolidation the product $XX.X SG&A generation XXXX $XX.X BioMedical year XXXX, to SG&A year-over-year million, ask cryobiological making growth. biomedical XXXX our the year-over-year. forecasted more in This quality with Cryobiological restructuring Crystal XXXX of third of fourth sales X% gas contribute business, that participants macroeconomic of million primarily questions. for to respiratory, increase BioMedical product we be market from cryobiological in In and million charges. over XXXX and X% cost grew of population, steel

Operator

Thank you.

Company. comes Our first from from question Matt Gabelli Trusz

open. is line Your

Matthew Trusz

Good morning. morning. this taking you Thank my questions for

William C. Johnson

Matt. Hi,

Matthew Trusz

the XXXX. and orders should geographical backlog domestic in see of whole and these formations XXXX? we year T&G you increase in shale gas model the to So for infrastructure? you shale discussed and E&C how this, gas E&C through What in the much strengthen for Do of was the persisting related the

William C. Johnson

answer do be we to the to question, in we in continued the into it over yeah, continuing macro see So, going comments processing we XXXX was see shale plants strength – yeah, We But future. gas, levels. that XXXX. our X% the gas in said

Jillian C. Evanko

XXXX From is about perspective which or we from in Matt, over shipped $XX backlog at of $XX were related to $XX million a just carry into so under XXXX now. booked that be million million will

Matthew Trusz

Great. Thank you.

of acquired that now your on, Hudson it segment? by either early go restructuring see we you Second and margin if overall on accomplished business you've look as what do a incremental at of objectives the segment forward margins, lot potential the or

Jillian C. Evanko

from had the by margin. to at in it in expansion we XXXX each from we it's breaking terms D&S first equally XXXX chart overall XXXX of margin the look see to to both it but restructuring of chart both basis the and gross expansion contribute segments, segments point full because I three biomedical and quarter, the if we incremental three So, the XXX primarily lowest is E&C for basis can the in XXX over the and consolidated of in for gross look XXXX points range benefit and total XXXX, down, think of of – consolidation we quarters at

Matthew Trusz

you. Thank

Operator

Thank you.

question next Malloy Rice. from from Our comes Johnson Martin

Your is open. line

Martin W. Malloy

morning. Good

William C. Johnson

morning. Good

Martin W. Malloy

work feed LNG some you when maybe through you LNG, side, occur? any for mid-scale of timing talk any could the that's expectations right larger bookings about maybe the and if have might that backlog now, flowing the On

William C. Johnson

that now. some XXXX. at it studies we and scope Well, if we're it, LNG some doing much some talked the other we having are that through projects year funds for as project at Cheniere well. that's There XXXX. where look right the we We the of into smaller anticipate Tellurium has look that are already But about passed on do pretty this going

Martin W. Malloy

year? expansion. the to Okay. And how Could impact capacity plant talk you about then this you Crosse La expect that

William C. Johnson

Yes.

So the in. comes having we done the be need the additional in really it the capacity and you relies it will third ourselves up future We expansion of and anticipate material know don't don't effect XXXX. It's what order this on intake really the quarter XXXX and a it in for year setting XXXX. on

Martin W. Malloy

Thank Great. you.

Operator

you. Thank

question next Our Lake Street Brown Capital from Rob comes Markets. from

Your line is open.

Rob Brown

morning. Good

maybe Hudson, the just the thinking as is far? your integration. update Hudson us that, got on it On and Where much how what's you've are go into you on more at this to

William C. Johnson

Yeah.

we said We're on the been acquisition, for terms is, with we're can where we bought the that. operation. any positive say we're we're very the standalone at our nice We very us very about going improve suppliers with would get on Tulsa million that effect track So very I I synergies look surprises looking in with stages – they the it we months helping Hudson when XX around said excellent right about complete – $X business to number in to things. of the a to I early in of actually we think that supply. the supply it and had we it things was as to But suppliers of wanted base a we acquisition, management There's some – and team. we it's the mean of profitable, some of all take synergies. of had was when did now at pleased today. was part at think and negative the it, haven't

Jillian C. Evanko

XXXX. remains announced the September we and as expect we that we after with that line EPS Hudson Rob, announced closed And, in in we for numbers October accretion the

Rob Brown

just your you are acquisition there to Okay. of still that now? completed, maybe need business pieces businesses like you the strategy running pieces Good. are you you've Good Skaff at sort service update. or of or that there And looking feel got do touching then, still

William C. Johnson

a are for Skaff. than we much we're that that was us January than were continue to in at, at we Well, fill. say opportunities in there to evaluate. were there look certainly The would a that Northeast before better needed we're we we a out Xnd. and pool I other position are But prior to certainly will we better looking big position

Rob Brown

I'll Okay. it turn Thank you. over.

Operator

Thank you.

comes Stine question from next Eric Craig-Hallum. from Our

line Your is open.

Eric Andrew Stine

just I to content this, you're as projects to – Hi, equipment where the you're the engineering obviously the don't mix difference supplying given maybe Bill. between if divulge you Hi, Jill. just the see LNG, but project there? turning in Maybe work know just it pipeline, doing any the willing versus big

William C. Johnson

Well, we engineering we're doing engineering whether do or we providing we're – equipment say, right. yeah, I – would that doing work work,

So we have to supply do engineering work to the equipment.

not I'm sure there. that there's a distinction So

Eric Andrew Stine

Okay.

William C. Johnson

unless installation about talking where And then as – general you're a doing the contract. we're acting

Eric Andrew Stine

not where mid-scale, I'm content the much content. end more base talking there's your more there just is as traditional much on versus the load where

you've – but markets the are move versus traditionally phrased mid-scale? versus wrong more maybe So, the I the what forward just done mix past in the maybe going question in

William C. Johnson

Yeah.

revolves mid-scale – the and about very more So the technology. that say off-take a interested ability getting inquiries what that, people would there secure around really and are agreements in it our lot modular for to I we is it's People IPSMR, are off-take.

just a $X.X arena. at think happened that that really for announced I that off-take that solutions off-take million in they're mid-scale with. come modular tonne that saw the IPSMR the X.X You into million provides example off-take technology dollar that well seeing agreement kind of at bodes Cheniere China. our or level, agreement And and

of seeing our in a understand what industry I major lot players inquiries table. from And are benefits technology to and the we think, the so brings to

Eric Andrew Stine

it. Got

a does that mean, pipeline. good sounds And the portion make it so I up of like

William C. Johnson

point the pipeline. It to certainly at will contribute some

Eric Andrew Stine

turning just all-clear the to you? safe some it time that really seen you it's give Maybe mean you're given terms enough. customers of But consolidation know the industry. impact not Fair kind I Okay. to know seeing going consolidation from of been trends your gas. that for we've a that's to is given industrial in the question positive industry in I that

William C. Johnson

all right. yet, the – You know merger (XX:XX) done know not think I you is

Eric Andrew Stine

Yeah.

William C. Johnson

there you you will that jury I Liquide continue for has The a good to going take is out happen. quite know business to merger see August, we So what's Airgas-Air been see so know and still think while sometime completed to you in from them. know

Eric Andrew Stine

Okay.

William C. Johnson

I we'll So a monitor but think it. problem don't you that going forward, being know

Eric Andrew Stine

just one something then for last And Jill. Okay. clarify just to one

you say China, did on in the to going did overall you the what's XXXX, rate at XX%? your rate Just on tax given XX% tax and mean

Jillian C. Evanko

Correct, . rate Chart yes. tax total

Eric Andrew Stine

All very thank Okay. you right, much.

Jillian C. Evanko

Thanks, Eric.

Operator

Thank you.

from Hayes question from Research. Northcoast next Tom comes Our

open. is line Your

Thomas Hayes

morning. Good you. Thank

William C. Johnson

Good morning.

Jillian C. Evanko

Tom. Hey,

Thomas Hayes

it's I focus bit, as, expectations for just revenue wondering been was and in the is to XXXX what maybe, of you area an teased XXXX? of as the it since a out far level little service

Jillian C. Evanko

The revenue on aftermarket revenue Difficulty] about grow service, parts XX% (XX:XX) that XX% to of it XX% total and to XXXX. and expect in in was to service we to XXXX our services [Technical

Thomas Hayes

us, should the Okay. rate within core growth And between in Hudson since business is the then Hudson then for relatively the E&C the XXXX? business maybe think new and how we about

Jillian C. Evanko

Yeah.

XXXX. business grow So Chart we X% Air Hudson legacy, in product with that lines now then, expect we the Cooled grow X%. look to excluding Heat business at around we that, on And business XXXX those to Chart our Exchanger over combined expect Legacy and would

Thomas Hayes

bit that to you out mentioned opportunity, a might a of just little that bit? Great. spec maybe lastly quarters the you're little could of or as couple here tease time that generally And out order or And marine products apply in bunkering the tease maybe the then, to? Bill, a lasts used far kind maybe that you then, for just in as what

William C. Johnson

Yeah.

regulations regulations are of in it's marine with So particular in effect. into emission with Europe driven standards being we LNG, a activity lot and – a lot by and that of going the there's sulfur

low to have marine near all LNG some diesel engines either form or future. of sulfur So, be in running the the

more see to that a activity going lot in LNG, the of terms right we excess So, now LNG of of is Europe.

And we have the and a bunkering so, at we toXX X of ancillary cubic of that up terminals you and provide piping for equipment tanks what the X,XXX the bunkering. these the is do there storage all insulated that kinds be these along for all terminal, to may with tanks a goes meters vacuum smaller and

Thomas Hayes

you. Thank Great.

Operator

Pavel from Molchanov from Raymond our And you. James. Thank comes question next

is line Your open.

Pavel S. Molchanov

the guidance, to third over north And XXXX I think backlog a covers taking just used well third at it's for versus at of projected that. I question. historically your revenue sometimes your least or a Thanks When of over be just your it look XX% revenue.

the So the a cycle in orders are structural not in that shift has towards short included business more been now there backlog?

Jillian C. Evanko

Hi Pavel, has. yes there

of revenue cycle, the the shorter growth combination then So in higher the we service which a of the respiratory Sands in side and is business BioMedical mix. aftermarket our addition have Hudson

So that drives the delta.

Pavel S. Molchanov

guiding the XX% to to plus. so new fair rate XX% if you're your tax representation XX% thinking And you're that rates, understood. Okay, that to XX%? tax XX% Is why international at XX% federal is to about seems imply the of a rate

Jillian C. Evanko

correct. is That

losses by reduce driven benefit tax total and primarily the in have China our we ordinarily in that expense. tax result it's So that would

that So losses the the we've concluded to are be in likely used not future.

implied we is benefit, the so for So correct tax haven't international your recognized any side. rate

Pavel S. Molchanov

All right. Appreciate it.

Jillian C. Evanko

Thank you.

Operator

turn any to would to lines. I for further over Thank I'm from questions remarks. showing you. now our like call And the back closing Bill Johnson conference phone no

William C. Johnson

Crystal. you, Thank

We X, at are which the Marriott to XXXX Investor City. in announce Essex June scheduled Day take to is place Hotel New JW pleased our York

presidents. invitation a share with our business, interaction the first will provide provide and We in An of strategy, will instructions be our the week distributed outlook and segment March. RSVP three-year for

of three VCT Skaff quarter ownership to Goodbye. our for supports of $X.XX combination Cryogenics XXXX listening from growth range in everyone organic and our support year XXXX refinancing Thank a Vogel growth certain and markets, $X.XX reduce of to and lower EPS XXXX including of today. Products, digit full our debt at the all $X.XX XXXX. in XXXX segments in fourth cost, adjusted cost you actions, results full-year recovery guidance. restructuring structure Our Hudson for our mid-single and in The reflect

Operator

Ladies and thank you wonderful may and in gentlemen, day. This today's you does participating have your program a disconnect. all for Everyone conclude conference.

Chart Industries (GTLS) 22 Feb 182017 Q4 Earnings call transcript