Global Value Investing

[kmx_swing]

MDR McDermott International Inc

Q4 2015 Mcdermott International Inc Earnings Call
HOUSTON Feb 23, 2016
http://finance.yahoo.com/news/edited-transcript-mdr-earnings-conference-063413198.html

Conference call highlights
1. Cash provided by operating activities for 2015 was $55.3 million, compared to $7 million for the full-year 2014.
2. At December 31, 2015, we reported $781.6 million in cash and restricted cash, an increase in total cash from the third quarter of $14.4 million
3. We reported a backlog of approximately $4.2 billion at year-end, $2.4 billion is due to rolloff in 2016, $1.3 billion in 2017, and $0.5 billion and 2018.
4. our legacy loss project portfolio has decreased from three material projects to two material projects at the end of the year. One project is expected to be finished in the first quarter of 2016, and the second project is expected to be complete in early 2017
5. Our bids and change orders outstanding at year-end was $4.4 billion, compared to $2.6 billion at the end of the third-quarter 2015
6. Our list of target projects totaled $15.2 billion as of December 31, 2015.Targets are projects that we intend to bid on and we expect will be awarded to us or a competitor in the next 5 quarters.
7. For the full year 2016, the Company expects revenues $2.9 billion, and adjusted operating income to be approximately $115 million, (238.97M =0.50 per share)
8. We expect full-year 2016 adjusted net income to be breakeven
9. Also, we expect to have approximately $580 million of cash and restricted cash and $840 million in gross debt at the end of 2016,
10. we are more cost competitive than ever, and will continue to strive to remain so in the future
11. McDermott has completed its turnaround phase started in 2014
12. with a substantial portion of expected 2016 revenue in backlog, we look forward to a solid year despite the macro backdrop.

In Q1 2016 MDR was so far already awarded two new huge contracts. Add them to backlog. I have bought 12000 shares of this company. If the oil price will not improve, I plan to sell not sooner than at 5.50. If the oil prices improve...no way I will sell below 10