On 17 March 2020, Chart Industries, Inc. (NASDAQ: GTLS) spotted trading -73.53% off 52-week high price. On the other end, the stock has been noted 18.48% away from the low price over the last 52-weeks. The stock changed 7.38% to recent value of $25.32. The stock transacted 1425529 shares during most recent day however it has an average volume of 577.23K shares. The company has 45.14M of outstanding shares and 33.92M shares were floated in the market.

Chart Industries, Inc. (GTLS), a leading diversified global manufacturer of highly engineered equipment for the industrial gas and energy industries, recently stated results for the fourth quarter and full year ended December 31, 2019.  Further details can be found in the supplemental presentation included with this release.  Highlights include:

  • Full year record orders of $1.413B, a 23.7% increase (10.8% organic) over full year 2018, driven by record orders in trailers, LNG fueling stations, cryogenic equipment in India, lasers, hydrogen, cannabis and water treatment.
  • Record backlog ($762.3M), up 34.2% from the fourth quarter of 2018 (32.2% organic increase) driven by strong fourth quarter 2019 orders including the highest order quarter in history for Distribution & Storage Western Hemisphere (“D&S West”).
  • Received engineering release in December 2019 for a Big LNG project for which orders are predictable to be received in 2020.
  • Full year record sales of $1,299.1M, a 19.8% increase over 2018 supported by record organic sales.
  • Full year stated earnings per diluted share $1.32 included substantial transaction, integration and restructuring costs, resulting in full year record adjusted diluted EPS of $2.52.  The one-time costs in 2019 were related to restructuring and integration work that is predictable to return $38.3M annually starting in 2020.
  • Increased 2020 base revenue guidance to $1.645B to $1.710B and base adjusted diluted EPS guidance to $4.90 to $5.50, reflecting timing and strength of fourth quarter 2019 order activity.

Fourth quarter orders of $343.5M, a 20% increase over the third quarter of 2019, contributed to record full year orders of $1,412.9M. Fourth quarter sequential organic order growth was over 20% in three of our four sections contrast to the third quarter of 2019.  We booked 37 orders greater than $1M each, including a $23M PDH plant, a $12M crystallizer equipment order and a $9M small-scale terminal order.  In the fourth quarter 2019, D&S West had its highest order quarter in history, and included a $21M LNG by rail order, the first of its magnitude for our Gas By Rail (“GBR”) exclusive offering.  Energy & Chemicals Cryogenics (“E&C Cryo”) orders of $54.4M was a 55% increase over the third quarter of 2019, with no important Big LNG orders received in either quarter.  Consolidated full year 2019 record order levels increased 24% (10.8% organically) over the full year 2018 and were supported by record orders in lasers, cannabis, hydrogen, water treatment, LNG fueling stations, trailers and cryogenic equipment in India.

Our high demand is driven by two key areas in the business: global clean energy infrastructure buildout and specialty markets.  As we support countries and consumers in their efforts to move toward carbon neutral environments, demand for our LNG fueling stations, trailers, small-scale offerings and other infrastructure related products continues to increase.  LNG fueling stations set record order levels in 2019, with 55 stations contrast to 30 in 2018.  Additionally, 2019 is our second consecutive year of record orders for trailers, with a 9.4% increase over 2018.  In the fourth quarter, we received a $9M order for a small-scale terminal in the Caribbean, and in January 2020 reported the receipt of the letter of intent for IPSMR® and cryogenic equipment for Eagle LNG’s Jacksonville small-scale LNG terminal for which we expect the order and full notice to proceed in 2020.

Under our MOU with AG&P, we have begun to contribute to the infrastructure buildout in India, including 5 related stations ordered at the end of December.  We also are seeing considerable activity with Indian Oil Corporation Limited (“IOCL”), with whom we have an LNG-oriented MOU and who recently executed an MOU with ExxonMobil India LNG to work together on the LNG opportunities in the region.  Not only are we seeing LNG related work from IOCL, we received a $2.3M order in January 2020 for an IOCL refinery.  Our Indian facility is presently equipped to serve Indian Prime Minister Modi’s “Make in India” requirement for many Distribution & Storage products, and as part of the Air-X-Changers integration, will be manufacturing our first non-U.S. air cooled heat exchanger by the end of the first quarter 2020.

India activity isn’t contained to just the global infrastructure buildout.  D&S East received a $2.7M order from India Space Research Organization (“ISRO”) in the fourth quarter for hydrogen tanks, a sign that our specialty markets are expanding beyond just D&S West.  Our equipment and solutions for the specialty markets help our consumers achieve their sustainability and carbon neutral emissions targets with hydrogen being a key component.  We design and build liquid hydrogen storage tanks for consumers who integrate them into hydrogen fuel cell vehicle fueling stations for cars, buses, and forklifts.  Hydrogen fuel cell vehicles have zero tailpipe emissions while traditional transportation accounts for 17% of global CO2 emissions.  Another anticipated important growth driver in specialty markets for 2020 is our LNG vehicle tank solution for over the road trucking.  In the fourth quarter 2019, orders and sales were lower than anticipated as a key consumer chose to move full production to a new Chart model tank design.  Not only will these orders and sales move into 2020, the consumer has indicated higher volumes Because of this product transition.  Additionally, we expect a new over the road trucking consumer outside of Europe to start production in the second half of 2020.  With the increased forecast provided by consumers and the increasing movement to expedite cleaner fuel options in Europe, we are nearing completion of the European LNG vehicle tank capacity expansion project.  First deliveries are predictable in the second quarter of 2020.  Once ramped-up, we expect our LNG vehicle tank capacity will over double to over $200M dollars of potential revenue throughput annually.

Its earnings per share (EPS) expected to touch remained -15.00% for this year while earning per share for the next 5-years is expected to reach at 41.68%. GTLS has a gross margin of 26.90% and an operating margin of 6.20% while its profit margin remained 3.60% for the last 12 months.   According to the most recent quarter its current ratio was 1.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of -50.43% from the mean of 20 days, -58.40% from mean of 50 days SMA and performed -60.35% from mean of 200 days price. Company’s performance for the week was -23.94%, -65.58% for month and YTD performance remained -62.48%.

 

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