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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________________________
FORM 8-K
_____________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 18, 2018
____________________________________
CHART INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
_____________________________________
Delaware
001-11442
34-1712937
(State of other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
3055 Torrington Drive, Ball Ground, Georgia
 
30107
(Address of principal executive offices)
 
(ZIP Code)
Registrant’s telephone number, including area code: (770) 721-8800
NOT APPLICABLE
(Former name or former address, if changed since last report)
_____________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐



Item 2.02    Results of Operations and Financial Condition.
On October 18, 2018, Chart Industries, Inc. (the “Company”) issued a news release announcing the Company’s financial results for the third quarter ended September 30, 2018, as well as supplemental information for the third quarter ended September 30, 2018. A copy of the news release is furnished with this Current Report on Form 8-K as Exhibit 99.1, and a copy of the supplemental information is furnished with this Current Report on Form 8-K as Exhibit 99.2. All information in the news release and the supplemental information is furnished and shall not be deemed “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Exchange Act, or otherwise be subject to the liability of that Section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent the Company specifically incorporated it by reference.
The news release and supplemental information furnished with this Current Report on Form 8-K include measures that exclude certain items required to be presented under generally accepted accounting principles (“GAAP”). These measures are not recognized under generally accepted accounting principles (“GAAP”) and are referred to as “non-GAAP financial measures” in Regulation G under the Exchange Act. The Company believes these measures are of interest to investors and facilitate useful period-to-period comparisons of the Company’s financial results, and this information is used by the Company in evaluating internal performance. The non-GAAP measures are reconciled to the most directly comparable GAAP measure in tables at the end of the news release, except for the adjusted earnings per share amount included in the full year outlook, which the Company is not able to reconcile because certain items have not yet occurred or are out of the Company’s control and/or cannot be reasonably predicted.

Item 9.01    Financial Statements and Exhibits.
(d)    Exhibits.
Exhibit No.
Description
99.1
99.2


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
Chart Industries, Inc.

Date: October 18, 2018


 
By: /s/ Jillian C. Evanko
Jillian C. Evanko
President, Chief Executive Officer and Chief Financial Officer
 
 


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(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1
Chart Industries Reports 2018 Third Quarter Results
Atlanta, Georgia - October 18, 2018 - Chart Industries, Inc. (NASDAQ: GTLS), a leading diversified global manufacturer of highly engineered equipment for the industrial gas, energy and biomedical industries, today reported results for the third quarter ended September 30, 2018. Highlights include:

Realigned segmentation to support the announced acquisition of VRV, s.p.a. and its subsidiaries (collectively “VRV”), and divestiture of CAIRE Medical, the oxygen-related products from within the former BioMedical segment.
Orders of $264 million grew 21% (3% organically) over the third quarter of 2017 on a continuing operations basis driven by a 28% increase in orders in D&S Eastern Hemisphere, reflecting strength in trailers and standard tanks in the region.
Sales of $272 million grew 34% (16%) organically over the third quarter of 2017, on a continuing operations basis.
Reported EPS from continuing operations of $0.65 excludes $0.02 of reported EPS from discontinued operations. Adjusted EPS from continuing operations of $0.74 reflects continued margin expansion execution and early 80/20 wins.
Increased full year adjusted EPS guidance range to $1.90 to $2.00 on a continuing operations basis.
First look at 2019 guidance of revenue of $1.24 to $1.30 billion (16% to 18% growth or 6 to 7% organic growth) and adjusted EPS of $2.40 to $2.75 (assuming closure of VRV and CAIRE deals by the end of the fourth quarter of 2018, and no large LNG project revenue).

During the third quarter of 2018, we announced the completion of our strategic review of the oxygen-related products with a definitive agreement to sell CAIRE Medical to NGK Spark Plug Co., Ltd for $133.5 million, a gain on the sale, and an expected fourth quarter of 2018 close. CAIRE results are shown in the third quarter in discontinued operations. We also announced the signing of a definitive agreement to purchase VRV, a diversified multinational corporation that designs and manufactures pressure equipment serving the Cryogenic and Energy & Petrochemical end markets. Chart has agreed to pay €125 million (approximately $145 million USD, based on September 30,



2018 exchange rates), which will be funded by a combination of Chart’s available cash on hand and debt under its current credit facility or another financing alternative, and assume the outstanding indebtedness of VRV (approximately €70 million or approximately $81 million USD based on September 30, 2018 exchange rates). The VRV acquisition is expected to add initial annual net sales of $120 million, achieve significant cost synergies related to operational efficiencies and sourcing, and close in the fourth quarter of 2018.
To support these strategic moves as well as Chart’s expanded focus on geographic expansion outside of North America, we have realigned our segmentation, and now report our results in Energy & Chemicals (“E&C”), Distribution & Storage Western Hemisphere (the Americas; “D&S West”), and Distribution & Storage Eastern Hemisphere (Europe, Middle East, and Asia including China; “D&S East”). The CryoBiological product line that previously was reported through BioMedical and is not included in the pending sale of CAIRE is reflected in the D&S West segment. We expect these changes will provide improved transparency of business results to our shareholders, better align with Chart’s customer needs, and facilitate our growth strategies through collaboration of global and regional approaches. Additionally, the realignment of our segmentation results in over $2.5 million of annual SG&A savings per year, effective immediately.
Net income from continuing operations for the third quarter of 2018 was $21.5 million or $0.65 per diluted share, excluding $0.7 million of income from discontinued operations net of tax, or $0.02 per diluted share. Third quarter 2018 earnings from continued operations would have been $0.74 per diluted share excluding $2.9 million of transaction-related and restructuring costs. This is an increase of $0.26 of adjusted EPS over the second quarter of 2018 on a continued operations basis, and an increase of $0.17 over the second quarter of 2018 on a pre-discontinued operations basis. The third quarter of 2018 adjusted EPS of $0.74 on a continuing basis compares to $0.22 in the third quarter of 2017, which excludes restructuring and deal-related costs. Further details on the third quarter results, adjustments and our guidance can be found in the attached exhibit to this press release.

The third quarter of 2018 sales of $272.2 million grew 34.3% (16% organically) over the third quarter of 2017, on a continuing operations basis, driven by strength in natural gas processing and U.S. packaged gas. Orders of $263.8 million increased over the third quarter of 2017 by 21.3%, and decreased sequentially from the second quarter of 2018 by 17%. The sequential decrease in orders was driven by three large orders received in the second quarter of 2018 totaling $53 million in E&C from Hudson ($41 million) and D&S West ($12 million). Additionally, five other significant

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orders in D&S West were received in the second quarter of 2018, totaling $10 million. Even with these difficult sequential comparisons, order levels for the quarter continued the strong intake trend that has been seen over the past seven quarters. D&S East orders of $75.6 million increased over the third quarter of 2017 by 27.6% and sequentially from the second quarter by 11.4%. Both Asia Pacific and Europe experienced strength driven by standard tanks and LNG trailers. Asia Pacific orders were at their highest level since the second quarter of 2015, and European orders were at the highest level since the second quarter of 2008. Macro tailwinds of governmental policy, pollution control, and fuel taxes all drive additional regional opportunities in the East. In E&C, sequentially orders over the second quarter of 2018 orders increased 38% excluding Hudson. This reflects the continued strength in the United States natural gas processing market, where year to date we have sold equipment to 28 cryogenic gas plants in the West Texas Permian and Marcellus Basins. Additionally, in the third quarter, we received $3.3 million of orders for an on-ship boil off gas reliquefaction system. While we do not anticipate large LNG project orders until the first half of 2019, we do expect to receive a small LNG related order (less than $20 million) in the fourth quarter of 2018. IPSMR continues to be well received in the market, and within the quarter, a major oil and gas company completed an initial technical evaluation of Chart IPSMR LNG liquefaction technology. They have indicated that they may consider IPSMR for inclusion to compete in future LNG projects.

Gross profit for the third quarter of 2018 was $82.3 million, or 30.2% of sales from continuing operations. This is a 400 basis point improvement over the second quarter of 2018 gross profit as a percent of sales of 26.2%. The sequential increase in gross margin as a percent of sales was driven by both the D&S West and E&C segments. D&S West sales increased 1.2% sequentially over the second quarter of 2018, while gross margin as a percent of sales increased 510 basis points. Excluding the $3.75 million impact from costs associated with the CryoBiological recall in the second quarter of 2018, D&S West gross margins as a percent of sales increased 190 basis points sequentially, driven by margin improvement in bulk and packaged gas products as well as in the parts, repair and service (“PRS”) business. Margins in bulk, packaged gas and PRS each increased sequentially. E&C gross margin of $26.9 million, or 27.4% of sales, improved sequentially over the second quarter of 2018 gross margin as a percent of sales of 21.1%. The third quarter results reflect improved cost structure and included an unusual fast turn order received within the quarter. We expect E&C gross margin levels to continue at normalized third quarter levels of 24%-25% for the remainder of the year.


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“The sequential gross margin as a percent of sales improvement in our continuing operations reflects the execution on our right-sizing efforts that have continued throughout 2018. Coupling those efforts with our recent launch of the 80/20 process in D&S West, we expect further margin expansion in 2019,” said Jill Evanko, Chart’s CEO. “Additionally, the strategic reallocation of capital from the pending sale of CAIRE to the acquisition of VRV will allow us to grow faster than originally forecasted in 2019 and achieve our margin targets earlier in our three-year outlook,”

Selling, general and administrative ("SG&A") expenses for continued operations for the third quarter of 2018 were $45.8 million, inclusive of $2.9 million of transaction and restructuring related costs. SG&A expenses for the second quarter of 2018 were $48.1 million, inclusive of $2.2 million of transaction and restructuring-related costs. The improved SG&A is the result of 2018 restructuring actions.

SEGMENT HIGHLIGHTS

Third quarter 2018 orders in E&C were $84.9 million, a sequential decrease of 31% from the second quarter driven entirely by the two large Hudson orders in the second quarter of 2018. Excluding Hudson, orders were up 38% sequentially, with strong natural gas equipment demand, the reliquefaction order, and the fast turnaround order in the third quarter. This is the sixth quarter in a row with E&C order levels above $60 million, and every quarter of 2018 has been above $84 million. E&C segment sales were $98.1 million ($54.0 million excluding Hudson) with gross margin of $26.9 million, or 27.4% of sales. This is an increase over the second quarter of 2018 gross margin as a percent of sales of 21.1%. Our $24 million capital expansion for additional capacity in our Brazed Aluminum Heat Exchanger facility in La Crosse, Wisconsin is complete as of October 1, 2018, and we are able to handle the capacity required for our expected 2019 larger LNG related equipment orders.

D&S West sales of $119.0 million increased 19.5% over the third quarter of 2017, and 1.2% sequentially over the second quarter of 2018 driven by continued strength in U.S. packaged gas, and strong execution on shipping bulk gas backlog. Gross margin as a percent of sales of 37.6% in the third quarter of 2018 compares to 32.5% in the second quarter of 2018 and 37.1% in the third quarter of 2017. The second quarter of 2018 included $3.75 million of costs associated with the aluminum cryobiological recall, and excluding that, gross margin as a percent of sales would have been 35.7%. The sequential gross margin improvement was driven by the flow through of

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pricing actions taken earlier in 2018, and production efficiencies in bulk gas, packaged gas and PRS.

D&S East orders of $75.6 million increased over the third quarter of 2017 by 27.6% and sequentially from the second quarter by 11.4%, driven by all regions within the segment. D&S East sales of $56.8 are down $5.6 million from the second quarter of 2018. The decline was driven by the timing of large project shipments and milestones in Europe.

OUTLOOK
Our full year 2018 guidance is provided in various scenarios, with specific comparisons included in the attached exhibit to the press release.
Prior 2018 guidance (included CAIRE for full year 2018)
Sales guidance was expected to be in the range of $1.20 billion to $1.25 billion.
Full year adjusted earnings per diluted share (non-GAAP) was expected to be in the range of $1.85 to $2.05 per share, on approximately 32.0 million weighted average shares outstanding. This excludes any restructuring costs and transaction-related costs, and assumed continued ownership of all assets for the entire calendar year, and as such was a non-GAAP measure.
Effective tax rate was estimated to be approximately 27% for the full year.
Capital expenditures were expected to be $35 million to $45 million.
Current 2018 guidance excluding CAIRE (on a continuing operations basis for the full year). This does not include any VRV information in 2018 and normalizes for the entire year for CAIRE.
Sales guidance is expected to be in the range of $1.06B to $1.10B up from $1.04B to $1.09B (excluding full year CAIRE revenue in both instances).
Full year adjusted earnings per diluted share (non-GAAP) is expected to be in the range of $1.90 to $2.00 per share up from $1.64 to $1.84 per share, on approximately 32.0 million weighted average shares outstanding. This excludes any restructuring costs and transaction-related costs and excludes full year CAIRE adjusted EPS contribution, in both instances.
Full year capital expenditures are expected to be approximately $40 million.
Effective tax rate is anticipated to be 24% for the fourth quarter of 2018.


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Our full year 2019 guidance assumes that both the divestiture of CAIRE and the acquisition of VRV close in the fourth quarter of 2018, and assumes no large LNG project revenue in 2019. Sales guidance is expected to be in the range of $1.24 billion to $1.30 billion for the full year of 2019, or 16% to 18% of growth (6% to 7% organic growth). We expect full year adjusted earnings per diluted share (non-GAAP) to be in the range of $2.40 to $2.75 per share, on approximately 32.0 million weighted average shares outstanding. This excludes any restructuring costs and transaction-related costs, and assumes continued ownership of all assets for the entire calendar year, and as such is a non-GAAP measure. We expect our effective tax rate to be approximately 22%. We expect our capital expenditures for 2019 will be in the range of $30 million to $40 million.

FORWARD-LOOKING STATEMENTS
Certain statements made in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include statements concerning the Company's plans, objectives, future orders, revenues, margins, earnings or performance, liquidity and cash flow, capital expenditures, business trends, and other information that is not historical in nature.  Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," “outlook,” “guidance,” "continue," or the negative of such terms or comparable terminology.

Forward-looking statements contained in this presentation or in other statements made by the Company are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from those matters expressed or implied by forward-looking statements.  Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements include: those found in Item 1A (Risk Factors) in the Company’s most recent Annual Report on Form 10-K filed with the SEC, which should be reviewed carefully; Chart’s ability to close the VRV acquisition, successfully integrate VRV, and achieve anticipated revenue, earnings and accretion; estimated segment revenues, future revenue, earnings, cash flows, and margin targets and run rates; and Chart’s ability to close the sale of its oxygen-related products business within the BioMedical segment.  The Company undertakes no obligation to update or revise any forward-looking statement.


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Chart is a leading diversified global manufacturer of highly engineered equipment for the industrial gas, energy, and biomedical industries.  The majority of Chart's products are used throughout the liquid gas supply chain for purification, liquefaction, distribution, storage and end-use applications, a large portion of which are energy-related.  Chart has domestic operations located across the United States and an international presence in Asia, Australia, Europe and Latin America.  For more information, visit: http://www.chartindustries.com.

USE OF NON-GAAP FINANCIAL INFORMATION
To supplement the unaudited condensed consolidated financial statements presented in accordance with U.S. GAAP in this news release, certain non-GAAP financial measures as defined by the SEC rules are used.  The Company believes these non-GAAP measures are of interest to investors and facilitate useful period-to-period comparisons of the Company’s financial results, and this information is used by the Company in evaluating internal performance.  See the pages at the end of this news release for the reconciliations of adjusted earnings per diluted share, net earnings, adjusted, and free cash flow, the non-GAAP measures included in this release.

With respect to the Company's full year earnings outlook, the Company is not able to provide a reconciliation of the adjusted earnings per diluted share because certain items may have not yet occurred or are out of the Company's control and / or cannot be reasonably predicted.

CONFERENCE CALL
As previously announced, the Company will discuss its third quarter 2018 results on a conference call on Thursday, October 18, 2018 at 9:30 a.m. ET. Participants may join the conference call by dialing (877) 312-9395 in the U.S. or (970) 315-0456 from outside the U.S. Please log-in or dial-in at least five minutes prior to the start time.

A taped replay of the conference call will be archived on the Company’s website, www.chartindustries.com, approximately one hour after the call concludes. You may also listen to a recorded replay of the conference call by dialing (855) 859-2056 in the U.S. or (404) 537-3406 outside the U.S. and entering Conference ID 4718079. The telephone replay will be available beginning 1:30 p.m. ET, Thursday, October 18, 2018 until 1:30 p.m. ET, Thursday, October 25, 2018.


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For more information, click here:
http://ir.chartindustries.com/

Contact:
Jillian Evanko
Chief Executive Officer and Chief Financial Officer
630-418-9403
jillian.evanko@chartindustries.com


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CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars and shares in millions, except per share amounts)
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2018
 
September 30, 2017
 
June 30, 2018
 
September 30, 2018
 
September 30, 2017
Sales (1)
$
272.2

 
$
202.7

 
$
277.9

 
$
794.2

 
$
573.5

Cost of sales
189.9

 
144.8

 
205.1

 
572.2

 
415.0

Gross profit
82.3

 
57.9

 
72.8

 
222.0

 
158.5

Selling, general, and administrative expenses
45.8

 
48.1

 
48.1

 
140.5

 
133.9

Amortization expense
5.0

 
2.6

 
5.1

 
15.7

 
7.0

Operating expenses
50.8

 
50.7

 
53.2

 
156.2

 
140.9

Operating income (1) (2) (3) (4) (5) (6)
31.5

 
7.2

 
19.6

 
65.8

 
17.6

Other expenses:
 
 
 
 
 
 
 
 
 
Interest expense, net
5.3

 
4.8

 
6.2

 
17.9

 
13.0

Financing costs amortization
0.3

 
0.3

 
0.4

 
1.0

 
1.0

Foreign currency (gain) loss and other
(0.3
)
 
1.4

 
(1.6
)
 
(0.2
)
 
3.1

Other expenses, net
5.3

 
6.5

 
5.0

 
18.7

 
17.1

Income from continuing operations before income taxes
26.2

 
0.7

 
14.6

 
47.1

 
0.5

Income tax expense
4.2

 
0.7

 
3.9

 
9.7

 
0.6

Net income (loss) from continuing operations
22.0

 

 
10.7

 
37.4

 
(0.1
)
Income from discontinued operations, net of tax
0.7

 
2.1

 
2.4

 
4.7

 
2.6

Net Income
22.7

 
2.1

 
13.1

 
42.1

 
2.5

Less: Income attributable to noncontrolling interests of continuing operations, net of taxes
0.5

 
0.6

 
0.8

 
1.8

 
1.1

Net income attributable to Chart Industries, Inc.
$
22.2

 
$
1.5

 
$
12.3

 
$
40.3

 
$
1.4

Net income (loss) attributable to Chart Industries, Inc.
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
21.5

 
$
(0.6
)
 
$
9.9

 
$
35.6

 
$
(1.2
)
Income from discontinued operations, net of tax
0.7

 
2.1

 
2.4

 
4.7

 
2.6

Net income attributable to Chart Industries, Inc.
$
22.2

 
$
1.5

 
$
12.3

 
$
40.3

 
$
1.4

Basic earnings (loss) per common share attributable to Chart Industries, Inc.
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
0.70

 
$
(0.02
)
 
$
0.32

 
$
1.15

 
$
(0.04
)
Income from discontinued operations
0.02

 
0.07

 
0.08

 
0.15

 
0.08

Net income attributable to Chart Industries, Inc.
$
0.72

 
$
0.05

 
$
0.40

 
$
1.30

 
$
0.04

Diluted earnings (loss) per common share attributable to Chart Industries, Inc.
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
0.65

 
$
(0.02
)
 
$
0.31

 
$
1.11

 
$
(0.04
)
Income from discontinued operations
0.02

 
0.07

 
0.07

 
0.14

 
0.08

Net income attributable to Chart Industries, Inc.
$
0.67

 
$
0.05

 
$
0.38

 
$
1.25

 
$
0.04

Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
 
 
Basic
31.03

 
30.76

 
30.95

 
30.97

 
30.73

Diluted (7)
32.95

 
31.31

 
32.08

 
32.14

 
31.29

_______________
(1) 
Includes sales and operating income for Hudson, included in the E&C segment results since the acquisition date, September 20, 2017 as follows:
Sales were $44.1 and $6.1 for the three months ended September 30, 2018 and 2017, respectively and $47.5 for the three months ended June 30, 2018.
Sales were $134.9 and $6.1 for the nine months ended September 30, 2018 and 2017, respectively.

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Operating income was $4.3 and $1.2 for the three months ended September 30, 2018 and 2017, respectively, and $6.1 for the three months ended June 30, 2018.
Operating income was $14.6 and $1.2 for the nine months ended September 30, 2018 and 2017, respectively.
(2) 
Includes depreciation expense of:
$6.9, $6.5, and $7.0 for the three months ended September 30, 2018, September 30, 2017, and June 30, 2018, respectively, and
$21.1 and $18.2 for the nine months ended September 30, 2018 and 2017, respectively.
(3) 
Includes restructuring costs of:
$2.0, $2.3, and $0.5 for the three months ended September 30, 2018, September 30, 2017, and June 30, 2018, respectively, and
$3.5 and $8.5 for the nine months ended September 30, 2018 and 2017, respectively.
(4) 
Includes an expense of $3.8 recorded to cost of sales related to the estimated costs of the aluminum cryobiological tank recall for the nine months ended September 30, 2018.
(5) 
Includes transaction-related costs of:
$2.0, $7.4, and $0.8 for the three months ended September 30, 2018, September 30, 2017, and June 30, 2018, respectively, and
$4.1 and $8.6 for the nine months ended September 30, 2018 and 2017, respectively.
(6) 
Includes net severance costs of $0.9 related to headcount reductions associated with the strategic realignment of our segment structure, which includes $1.8 in payroll severance costs partially offset by a $0.9 credit due to related share-based compensation forfeitures for both the three and nine months ended September 30, 2018. Includes net severance costs of $1.4 related to the departure of our former CEO on June 11, 2018, which includes $3.2 in payroll severance costs partially offset by a $1.8 credit due to related share-based compensation forfeitures for the nine months ended September 30, 2018.
(7) 
Includes an additional 1.07 and 0.34 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the three and nine months ended September 30, 2018, respectively. The associated hedge, which helps offset this dilution, cannot be taken into account under U.S. generally accepted accounting principles (“GAAP”). If the hedge could have been considered, it would have reduced the additional shares by 0.93 and 0.34 for the three and nine months ended September 30, 2018, respectively.

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CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in millions)
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2018
 
September 30, 2017
 
June 30, 2018
 
September 30, 2018
 
September 30, 2017
Net Cash Provided By Operating Activities
$
21.2

 
$
19.1

 
$
22.7

 
$
63.6

 
$
14.3

Investing Activities
 
 
 
 
 
 
 
 
 
Acquisition of businesses, net of cash acquired

 
(422.8
)
 

 
(12.5
)
 
(446.0
)
Capital expenditures
(8.4
)
 
(6.4
)
 
(12.2
)
 
(26.4
)
 
(21.8
)
Proceeds from sale of assets

 
0.2

 

 

 
0.9

Government grants
0.1

 
0.1

 
0.6

 
0.8

 
0.4

Net Cash Used In Investing Activities
(8.3
)
 
(428.9
)
 
(11.6
)
 
(38.1
)
 
(466.5
)
Financing Activities
 
 
 
 
 
 
 
 
 
Borrowings on revolving credit facilities
123.3

 
300.0

 
27.0

 
188.3

 
302.2

Repayments on revolving credit facilities
(68.5
)
 

 
(28.0
)
 
(123.3
)
 
(5.1
)
Repurchase of convertible notes
(57.1
)
 

 

 
(57.1
)
 

Repayments on term loan

 

 
(3.0
)
 
(3.0
)
 

Payments for debt issuance costs

 

 

 
(0.2
)
 

Proceeds from exercise of stock options
3.6

 
0.2

 
0.6

 
5.4

 
1.1

Common stock repurchases
(0.1
)
 
(0.2
)
 
(0.1
)
 
(2.4
)
 
(2.0
)
Dividend distribution to noncontrolling interest

 

 
(0.4
)
 
(0.4
)
 

Net Cash Provided By (Used In) Financing Activities
1.2

 
300.0

 
(3.9
)
 
7.3

 
296.2

DISCONTINUED OPERATIONS
 
 
 
 
 
 
 
 
 
Cash (Used In) Provided By Operating Activities
(2.8
)
 
1.3

 
1.0

 
1.5

 
3.2

Cash Provided By (Used In) Investing Activities
0.3

 
(0.3
)
 
(0.3
)
 
(0.8
)
 
(1.6
)
Cash (Used In) Provided By Discontinued Operations
(2.5
)
 
1.0

 
0.7

 
0.7

 
1.6

Effect of exchange rate changes on cash
(2.9
)
 
1.3

 
(7.7
)
 
(6.7
)
 
4.9

Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents
8.7

 
(107.5
)
 
0.2

 
26.8

 
(149.5
)
Cash, cash equivalents, restricted cash, and restricted cash equivalents
at beginning of period
(1)
149.5

 
240.9

 
149.3

 
131.4

 
282.9

CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS AT END OF PERIOD (1)
$
158.2

 
$
133.4

 
$
149.5

 
$
158.2

 
$
133.4

_______________
(1) 
Includes restricted cash and restricted cash equivalents as follows:
$1.0 in other assets at both September 30, 2018 and June 30, 2018,
$6.5 ($5.5 in other current assets and $1.0 in other assets) at March 31, 2018, and
$8.7 ($7.7 in other current assets and $1.0 in other assets) at both December 31, 2017 and June 30, 2017.

11



CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in millions)
 
September 30,
2018
 
December 31,
2017
ASSETS
 
 
 
Cash and cash equivalents
$
157.2

 
$
122.6

Accounts receivable, net
177.3

 
196.4

Inventories, net
188.2

 
173.7

Other current assets
58.4

 
74.6

Property, plant, and equipment, net
288.4

 
285.0

Goodwill
457.2

 
459.7

Identifiable intangible assets, net
270.3

 
286.4

Other assets
18.1

 
21.4

Total assets of discontinued operations
123.4

 
104.9

TOTAL ASSETS
$
1,738.5

 
$
1,724.7

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities
$
281.4

 
$
371.7

Long-term debt
500.5

 
439.2

Other long-term liabilities
80.8

 
90.1

Total liabilities of discontinued operations
34.8

 
18.5

Equity
841.0

 
805.2

TOTAL LIABILITIES AND EQUITY
$
1,738.5

 
$
1,724.7


12



CHART INDUSTRIES, INC. AND SUBSIDIARIES
OPERATING SEGMENTS (UNAUDITED)
(Dollars in millions)
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2018
 
September 30, 2017
 
June 30, 2018
 
September 30, 2018
 
September 30, 2017
Sales
 
 
 
 
 
 
 
 
 
Energy & Chemicals (1)
$
98.1

 
$
46.6

 
$
100.8

 
$
288.8

 
$
126.5

D&S West
119.0

 
99.6

 
117.6

 
337.2

 
295.6

D&S East
56.8

 
63.2

 
62.4

 
174.3

 
166.7

Intersegment eliminations
(1.7
)
 
(6.7
)
 
(2.9
)
 
(6.1
)
 
(15.3
)
Consolidated
$
272.2

 
$
202.7

 
$
277.9

 
$
794.2

 
$
573.5

Gross Profit
 
 
 
 
 
 
 
 
 
Energy & Chemicals
$
26.9

 
$
8.6

 
$
21.3

 
$
67.6

 
$
22.4

D&S West
44.7

 
37.0

 
38.2

 
119.0

 
105.3

D&S East
11.2

 
13.7

 
14.1

 
37.1

 
34.4

Intersegment eliminations
(0.5
)
 
(1.4
)
 
(0.8
)
 
(1.7
)
 
(3.6
)
Consolidated
$
82.3

 
$
57.9

 
$
72.8

 
$
222.0

 
$
158.5

Gross Profit Margin
 
 
 
 
 
 
 
 
 
Energy & Chemicals
27.4
%
 
18.5
%
 
21.1
%
 
23.4
%
 
17.7
 %
D&S West
37.6
%
 
37.1
%
 
32.5
%
 
35.3
%
 
35.6
 %
D&S East
19.7
%
 
21.7
%
 
22.6
%
 
21.3
%
 
20.6
 %
Consolidated
30.2
%
 
28.6
%
 
26.2
%
 
28.0
%
 
27.6
 %
Operating Income (Loss) (2) (3)
 
 
 
 
 
 
 
 
 
Energy & Chemicals (1)
$
12.1

 
$
0.3

 
$
5.9

 
$
20.8

 
$
(2.4
)
D&S West
31.9

 
23.1

 
23.6

 
77.7

 
62.3

D&S East
3.3

 
5.6

 
6.6

 
13.5

 
11.8

Corporate (5) (6)
(15.3
)
 
(20.4
)
 
(15.7
)
 
(44.5
)
 
(50.5
)
Intersegment eliminations
(0.5
)
 
(1.4
)
 
(0.8
)
 
(1.7
)
 
(3.6
)
Consolidated
$
31.5

 
$
7.2

 
$
19.6

 
$
65.8

 
$
17.6

Operating Margin (Loss)
 
 
 
 
 
 
 
 
 
Energy & Chemicals
12.3
%
 
0.6
%
 
5.9
%
 
7.2
%
 
(1.9
)%
D&S West
26.8
%
 
23.2
%
 
20.1
%
 
23.0
%
 
21.1
 %
D&S East
5.8
%
 
8.9
%
 
10.6
%
 
7.7
%
 
7.1
 %
Consolidated
11.6
%
 
3.6
%
 
7.1
%
 
8.3
%
 
3.1
 %
_______________
(1) 
Includes sales and operating income for Hudson, included in the E&C segment results since the acquisition date, September 20, 2017 as follows:
Sales were $44.1 and $6.1 for the three months ended September 30, 2018 and 2017, respectively and $47.5 for the three months ended June 30, 2018.
Sales were $134.9 and $6.1 for the nine months ended September 30, 2018 and 2017, respectively.
Operating income was $4.3 and $1.2 for the three months ended September 30, 2018 and 2017, respectively, and $6.1 for the three months ended June 30, 2018.
Operating income was $14.6 and $1.2 for the nine months ended September 30, 2018 and 2017, respectively.
(2) 
Restructuring costs for the three months ended:
September 30, 2018 were $2.0 ($0.1 – E&C, $0.1 – D&S East, and $1.8 – Corporate).
September 30, 2017 were $2.3 ($0.2 – E&C, $0.2 – D&S West, $0.5 – D&S East, and $1.4 – Corporate)
June 30, 2018 were $0.5 ($0.2 – E&C and $0.3 – D&S East)
(3) 
Restructuring costs for the nine months ended:

13



September 30, 2018 were $3.5 ($0.5 – E&C, $0.6 – D&S East, and $2.4 – Corporate)
September 30, 2017 were $8.5 ($2.3 – E&C, $0.9 – D&S West, $0.8 – D&S East, and $4.5 – Corporate)
(4) 
Includes an expense of $3.8 recorded to cost of sales related to the estimated costs of the aluminum cryobiological tank recall for the nine months ended September 30, 2018.
(5) 
Includes transaction-related costs of:
$2.0, $7.4, and $0.8 for the three months ended September 30, 2018, September 30, 2017, and June 30, 2018, respectively, and
$4.1 and $8.6 for the nine months ended September 30, 2018 and 2017, respectively.
(6) 
Includes net severance costs of $0.9 related to headcount reductions associated with the strategic realignment of our segment structure, which includes $1.8 in payroll severance costs partially offset by a $0.9 credit due to related share-based compensation forfeitures for the nine months ended September 30, 2018. Includes net severance costs of $1.4 related to the departure of our former CEO on June 11, 2018, which includes $3.2 in payroll severance costs partially offset by a $1.8 credit due to related share-based compensation forfeitures for the nine months ended September 30, 2018.

14



CHART INDUSTRIES, INC. AND SUBSIDIARIES
ORDERS AND BACKLOG (UNAUDITED)
(Dollars in millions)
 
Three Months Ended
 
September 30,
2018
 
September 30,
2017
 
June 30,
2018
Orders
 
 
 
 
 
Energy & Chemicals (1)
$
84.9

 
$
65.9

 
$
122.5

D&S West
103.3

 
92.3

 
126.9

D&S East
75.6

 
59.2

 
67.8

Consolidated
$
263.8

 
$
217.4

 
$
317.2

 
As of
 
September 30,
2018
 
September 30,
2017
 
June 30,
2018
Backlog
 
 
 
 
 
Energy & Chemicals (2) (3)
$
226.0

 
$
234.6

 
$
238.6

D&S West
130.7

 
111.0

 
147.2

D&S East
144.8

 
120.2

 
128.0

Consolidated
$
501.5

 
$
465.8

 
$
513.8

_______________
(1) 
E&C orders includes $43.1 and $92.2 in orders related to Hudson for the three months ended September 30, 2018 and June 30, 2018, respectively. Included in our second quarter of 2018 orders was a $28 million order for our Hudson Products air cooled heat exchangers on a large LNG project, as well as a $13 million order for equipment for a natural gas liquids fractionation project.  These orders will ship partially in 2018 and the remainder in 2019.
(2) 
E&C backlog as of September 30, 2018 and June 30, 2018 includes $102.0 and $104.3 related to Hudson, respectively.
(3) 
Included in the E&C backlog as of September 30, 2018, September 30, 2017, and June 30, 2018 is approximately $40 million related to the previously announced Magnolia LNG order.

15



CHART INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF EARNINGS (LOSS) PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED)
(Dollars in millions, except per share amounts)
 
Three Months Ended
 
September 30, 2018
 
September 30, 2017
 
June 30, 2018
Earnings (loss) per diluted share as reported (U.S. GAAP) – Continuing Operations
$
0.65

 
$
(0.02
)
 
$
0.31

Aluminum cryobiological tank recall reserve expense (1)

 

 
0.09

Restructuring and transaction-related costs (2)
0.07

 
0.24

 
0.04

CEO departure net costs (3)

 

 
0.03

Dilution impact of convertible notes
0.02

 

 
0.01

Adjusted earnings per diluted share (non-GAAP) – Continuing Operations
$
0.74

 
$
0.22

 
$
0.48

 
Three Months Ended
 
September 30, 2018
 
September 30, 2017
 
June 30, 2018
Earnings per diluted share as reported (U.S. GAAP) –Discontinued Operations
$
0.02

 
$
0.07

 
$
0.07

 
Three Months Ended
 
September 30, 2018
 
September 30, 2017
 
June 30, 2018
Earnings per diluted share as reported (U.S. GAAP) – Consolidated
$
0.67

 
$
0.05

 
$
0.38

Aluminum cryobiological tank recall reserve expense (1)

 

 
0.09

Restructuring and transaction-related costs (2)
0.07

 
0.24

 
0.04

CEO departure net costs (3)

 

 
0.03

Dilution impact of convertible notes
0.02

 

 
0.01

Adjusted earnings per diluted share (non-GAAP) – Consolidated
$
0.76

 
$
0.29

 
$
0.55

_______________
(1) 
During the three months ended June 30, 2018, we recorded an expense of $3.8 to cost of sales related to the estimated costs of the aluminum cryobiological tank recall.
(2) 
During the three months ended September 30, 2018, we recorded net severance costs of $0.9 related to headcount reductions associated with the strategic realignment of our segment structure, which includes $1.8 in payroll severance costs partially offset by a $0.9 credit due to related share-based compensation forfeitures.
(3) 
During the three months ended June 30, 2018, we recorded net severance costs of $1.4 related to the departure of our former CEO on June 11, 2018, which includes $3.2 in payroll severance costs partially offset by a $1.8 credit due to related share-based compensation forfeitures.
Adjusted earnings per diluted share is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to earnings per share in accordance with U.S. GAAP. Management believes that adjusted earnings per share facilitates useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of this non-GAAP measure may not be comparable to the calculations of similarly titled measures reported by other companies.

16



CHART INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO CHART INDUSTRIES, INC. TO INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO CHART INDUSTRIES, INC., ADJUSTED (UNAUDITED)
(Dollars in millions)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Income (loss) from continuing operations attributable to Chart Industries, Inc., as reported (U.S. GAAP)
$
21.5

 
$
(0.6
)
 
$
35.6

 
$
(1.2
)
Interest accretion of convertible notes discount
2.3

 
3.4

 
7.3

 
10.0

Employee share-based compensation expense
0.5

 
1.4

 
3.5

 
9.1

Financing costs amortization
0.3

 
0.3

 
1.0

 
1.0

Unrealized foreign currency transaction (gain) loss
(0.2
)
 

 
(1.0
)
 
0.2

Other non-cash operating activities
1.3

 
1.3

 
1.3

 
1.0

Income from continuing operations attributable to Chart Industries, Inc., adjusted (non-GAAP)
$
26.9

 
$
8.5

 
$
54.2

 
$
23.8

_______________
Income from continuing operations attributable to Chart Industries, Inc., adjusted is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to net income in accordance with U.S. GAAP. Management believes that Income from continuing operations attributable to Chart Industries, Inc., adjusted, facilitates useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of this non-GAAP measure may not be comparable to the calculations of similarly titled measures reported by other companies.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO FREE CASH FLOW (UNAUDITED)
(Dollars in millions)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Net cash provided by operating activities from continuing operations
$
21.2

 
$
19.1

 
$
63.6

 
$
14.3

Capital expenditures from continuing operations
(8.4
)
 
(6.4
)
 
(26.4
)
 
(21.8
)
Free cash flow (non-GAAP)
$
12.8

 
$
12.7

 
$
37.2

 
$
(7.5
)
_______________
Free cash flow is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to net cash provided by operating activities in accordance with U.S. GAAP. Management believes that free cash flow facilitates useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of this non-GAAP measure may not be comparable to the calculations of similarly titled measures reported by other companies.


17

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Section 3: EX-99.2 (EXHIBIT 99.2)

ex992gtlssept302018suppl
Exhibit 99.2 Chart Industries Third Quarter 2018 October 18, 2018 © 2018 Chart Industries, Inc. Confidential and Proprietary © 2018 Chart Industries, Inc. Confidential and Proprietary


 
Forward Looking Statements Certain statements made in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company's plans, objectives, future orders, revenues, margins, earnings or performance, liquidity and cash flow, capital expenditures, business trends, and other information that is not historical in nature. Forward- looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," “outlook,” “guidance,” "continue," or the negative of such terms or comparable terminology. Forward-looking statements contained in this presentation or in other statements made by the Company are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from those matters expressed or implied by forward-looking statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements include: those found in Item 1A (Risk Factors) in the Company’s most recent Annual Report on Form 10-K filed with the SEC, which should be reviewed carefully; Chart’s ability to close the VRV acquisition, successfully integrate VRV, and achieve anticipated revenue, earnings and accretion; estimated segment revenues, future revenue, earnings, cash flows, and margin targets and run rates; and Chart’s ability to close the sale of its oxygen-related products business within the BioMedical segment. The Company undertakes no obligation to update or revise any forward-looking statement. Chart is a leading diversified global manufacturer of highly engineered equipment for the industrial gas, energy, and biomedical industries. The majority of Chart's products are used throughout the liquid gas supply chain for purification, liquefaction, distribution, storage and end-use applications, a large portion of which are energy- related. Chart has domestic operations located across the United States and an international presence in Asia, Australia, Europe and Latin America. For more information, visit: http://www.chartindustries.com. 1 © 2018 Chart Industries, Inc. Confidential and Proprietary 1


 
Third Quarter 2018 Financial Results Q3 Highlights Sales & Revenue1 Adjusted 1 1,2 ($USD Million) Earnings Per Share Earnings Per Share • Sales increase of 34.3% over the third quarter of 2017, $272 $0.65 $0.74 16.0% excluding Hudson Products • Reported earnings per diluted share increased $272 $0.65  $0.74  $0.67 compared to the third quarter 2017, and adjusted EPS grew $0.52 in the same $203 comparative period • Orders of $264 million increased compared to $217 million in the third quarter of 2017, and increased 3.3% $0.22  organically ($0.02) Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 1. All results reflect Continuing Operations 2. Adjusted earnings per share is a non-GAAP measure, see reconciliation to the comparable GAAP measure on page 5. 2 © 2018 Chart Industries, Inc. Confidential and Proprietary 2


 
Chart Significant LNG Opportunities Project Opportunity  Chart Customer Operator Country Capacity Scope of Supply PA ssLNG Confidential Confidential USA 50,000 gpd C50N Cold box, BAHX, ACHX FL ssLNG Expansion EPC TBD Confidential USA 250,000 gpd C250N, Cold boxes, BAHX, ACHX MA ssLNG Confidential Confidential USA 250,000 gpd C250N, Cold boxes, BAHX, ACHX Driftwood LNG Becthel Tellurian USA 26 MTPA IPSMR®, Cold boxes, BAHX, ACHX Calcasieu Pass GE Venture Global USA 10 MTPA 9 Trains ‐ 2xCold Boxes/train, BAHX Corpus Christi TX ‐ Stage 3 KBR/Siemens Cheniere USA 9.5 MTPA IPSMR®, Cold boxes, BAHX, ACHX Gimi (FLNG #3) Black & Veatch Golar W. Africa 3.75 MTPA 4x Cold Boxes, BAHX PA MultiTrain LNG EPC TBD Confidential USA 3 MM gpd IPSMR®, Cold boxes, BAHX, ACHX Magnolia LNG Magnolia Magnolia USA 8 MTPA Cold Boxes, BAHX, Core‐in‐kettles C500 IPSMR®, Cold boxes, BAHX, ACHX,  FL ssLNG EPC TBD Confidential USA 500,000 gpd Tanks  Gandria (FLNG #2) Black & Veatch Golar W. Africa 3.75 MTPA 4x Cold Boxes, BAHX Pointe LNG EPC TBD Pointe LNG USA 6 MTPA IPSMR®, Cold boxes, BAHX, ACHX SE Asia LNG EPC TBD Confidential SE Asia 3 MTPA IPSMR®, Cold boxes, BAHX, ACHX SE Asia Expansion EPC TBD Confidential SE Asia 8 MTPA IPSMR®+, Cold boxes, BAHX, ACHX 3 © 2018 Chart Industries, Inc. Confidential and Proprietary


 
2018 YTD Financial Results YTD Q3 2018 Highlights Sales & Revenue1 Adjusted 1 1,2 ($USD Million) Earnings Per Share Earnings Per Share • Sales increase of 38.5% over YTD third quarter of 2017, $794 $1.11 $1.41 16.2% excluding Hudson Products • Reported earnings per diluted share increased $794 $1.11  $1.41  $1.15 compared to the first three quarters of 2017, and adjusted EPS grew $1.06 in the same comparative period $574 • Orders of $869 million increased compared to $613 million in the first three quarters of 2017, and increased 14.4% organically $0.35  ($0.04) YTD 2017 YTD 2018 YTD 2017 YTD 2018 YTD 2017 YTD 2018 1. All results reflect Continuing Operations 2. Adjusted earnings per share is a non-GAAP measure, see reconciliation to the comparable GAAP measure on page 5. 4 © 2018 Chart Industries, Inc. Confidential and Proprietary 4


 
Adjusted Earnings Per Share Q3 Q3 Change V.  YTD YTD Change V.  $ millions, except per share amounts 2018 2017 PY 2018 2017 PY Net income (loss) $21.5  ($0.6) $22.1  $35.6  ($1.2) $36.8           from continuing operations EPS (1) $0.65  ($0.02) $0.67  $1.11  ($0.04) $1.15             from continuing operations Restructuring and transaction‐ $0.07 $0.24  ($0.17) $0.16 $0.39  ($0.23) related costs Aluminum cryobiological tank              ‐                ‐                ‐            0.09              ‐            0.09  recall reserve expense CEO departure net costs             ‐                ‐                ‐            0.03              ‐            0.03  Dilution impact of convertible          0.02              ‐            0.02          0.02              ‐            0.02  notes Adjusted EPS (2,3) $0.74  $0.22  $0.52  $1.41  $0.35  $1.06         from continuing operations (1) On January 1, 2018, we adopted ASC 606 which resulted in a timing related EPS impact of $0.00 Q3 2018, and $0.03 YTD 2018. (2) Adjusted EPS (a non-GAAP measure) is as reported on a historical basis. (3) Adjusted EPS normalized for FX impact would have been $0.73 and $0.26 for Q318 and Q317, or $1.42 and $0.41 YTD 2017 and 2018 respectively. (4) Tax effected adjustments are at normalized statutory quarterly rates. 5 © 2018 Chart Industries, Inc. Confidential and Proprietary 5


 
2018 Financial Results Recap Q3 2018 Q3 2018 Q3 2018 Q3 2018 $ millions, except per share amounts Adjustments Revenue Net Income EPS Adjusted EPS Chart Industries, Consolidated $315.2 $22.2 $0.67 $0.09 $0.76 Less: Discontinued Operations 43.0 0.7 0.02 - 0.02 Chart Industries, Continuing Operations $272.2 $21.5 $0.65 $0.09 $0.74 YTD 2018 YTD 2018 YTD 2018 $ millions, except per share amounts YTD 2018 EPS Adjustments Revenue Net Income Adjusted EPS Chart Industries, Consolidated $914.8 $40.3 $1.25 $0.30 $1.55 Less: Discontinued Operations 120.6 4.7 0.14 - 0.14 Chart Industries, Continuing Operations $794.2 $35.6 $1.11 $0.30 $1.41 6 © 2018 Chart Industries, Inc. Confidential and Proprietary


 
2018 Guidance Prior Guidance Prior Guidance, FY 2018 Guidance2 (Q2 2018)1 Q2 2018, Continuing Ops2 Sales Sales Sales $1.20B - $1.25B $1.04B - $1.09B $1.06B - $1.10B 7-9% organic growth Adjusted EPS $1.85 - $2.05 Adjusted EPS Adjusted EPS Inclusive of ~$0.15 impact from U.S. tax $1.64 - $1.84 $1.90 - $2.00 reform Assumes 27% full year tax rate Capital Expenditures Capital Expenditures Capital Expenditures $35M - $45M $34M - $44M $35M - $40M Inclusive of ~$11M for finalization of Inclusive of ~$11M for finalization of Inclusive of ~$11M for finalization of La Crosse, WI capacity expansion La Crosse, WI capacity expansion La Crosse, WI capacity expansion 1. The Company’s prior guidance assumed continued ownership of all assets for the entire calendar year. 2. The Company’s current guidance reflects continuing operations only, and prior guidance restated to reflect continuing operations only. 7 © 2018 Chart Industries, Inc. Confidential and Proprietary 7


 
2019 First Look at Guidance Full Year 2019 Sales $1.24B - $1.30B 16-%18% growth 6%-7% organic growth Adjusted EPS $2.40 - $2.75 Assumes 22% to 23% full year tax rate Excludes any large LNG related revenue Includes Full Year of VRV, s.p.a. and Excludes CAIRE Capital Expenditures $30M - $40M 8 © 2018 Chart Industries, Inc. Confidential and Proprietary


 
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