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Chart Industries Reports 2019 Fourth Quarter and Full Year Results

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ATLANTA, Feb. 13, 2020 (GLOBE NEWSWIRE) — Chart Industries, Inc. (NASDAQ: GTLS), a leading diversified global manufacturer of highly engineered equipment for the industrial gas and energy industries, today reported 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 $1.413 billion, 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 ($762.3 million), 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 expected to be received in 2020.Full year record sales of $1,299.1 million, a 19.8% increase over 2018 supported by record organic sales.Full year reported 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 expected to return $38.3 million annually beginning in 2020. Increased 2020 base revenue guidance to $1.645 billion to $1.710 billion 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 $343.5 million, a 20% increase over the third quarter of 2019, contributed to record full year orders of $1,412.9 million. Fourth quarter sequential organic order growth was over 20% in three of our four segments compared to the third quarter of 2019.  We booked 37 orders greater than $1 million each, including a $23 million PDH plant, a $12 million crystallizer equipment order and a $9 million small-scale terminal order.  In the fourth quarter 2019, D&S West had its highest order quarter in history, and included a $21 million LNG by rail order, the first of its magnitude for our Gas By Rail (“GBR”) unique offering.  Energy & Chemicals Cryogenics (“E&C Cryo”) orders of $54.4 million was a 55% increase over the third quarter of 2019, with no significant 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 customers 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 compared 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 $9 million order for a small-scale terminal in the Caribbean, and in January 2020 announced 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 $2.3 million order in January 2020 for an IOCL refinery.  Our Indian facility is currently 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 $2.7 million 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 customers achieve their sustainability and carbon neutral emissions targets with hydrogen being a key component.  We design and build liquid hydrogen storage tanks for customers 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 significant 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 customer chose to move full production to a new Chart model tank design.  Not only will these orders and sales move into 2020, the customer has indicated higher volumes due to this product transition.  Additionally, we expect a new over the road trucking customer outside of Europe to begin production in the second half of 2020.  With the increased forecast provided by customers 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 expected in the second quarter of 2020.  Once ramped-up, we expect our LNG vehicle tank capacity will more than double to over $200 million dollars of potential revenue throughput annually. The order strength throughout 2019 contributed to full year record sales both including and excluding Air-X-Changers and VRV.  Full year sales of $1,299.1 million represents a 19.8% increase over 2018. Even with the record full year sales in 2019, backlog ended at $762.3 million, the highest in our history.  This record backlog is an increase of 34.2% from the fourth quarter of 2018, or a 32.2% organic increase.  The fourth quarter book to bill ratio was 1.0, with book to bill ratios of 1.2 in both D&S East and West.  Backlog includes approximately $125 million of Venture Global Calcasieu Pass project revenue, of which $100 million is expected to be recognized in 2020.  Backlog does not include additional Big LNG project orders as of December 31, 2019, although in the fourth quarter 2019 we received an engineering release for one of the Big LNG projects that we expect orders to be received in 2020.  We continue to expect orders between $700 million and $1 billion of additional Big LNG projects in 2020, in particular, Tellurian’s Driftwood (Phase 1, 16.6 MTPA) and Cheniere’s Corpus Christi Stage Three.  Tellurian has all permits secured, including the December FERC approval to move ahead with groundwork at the site.  Tellurian announced last month that they have “already made the decision to go forward with this project.  The only thing remaining is the incremental notice that is given at the end of financing” which is expected to occur by mid-2020.  Cheniere has indicated a 2020 Final Investment Decision (“FID”), and will leverage their existing infrastructure at Corpus Christi to move ahead quickly.  Additionally, we are beginning to see orders related to optimization and retrofitting of existing LNG export terminals, with a $1 million air cooler order received in early January related to this type of work.“Significant demand in the fourth quarter of 2019 for our cryogenic equipment in both global infrastructure applications as well as specialty markets contributed to 2019 record orders, sales and backlog for Chart” said Jill Evanko, Chart’s President and CEO.  “With the expectation of continued broad-based order strength throughout 2020 as well as additional Big LNG orders, we expect 2020 to be another record year.”Fourth quarter reported diluted earnings per share (“EPS”) of $0.34 included many one-time and unusual items that will not repeat in 2020.  The one-time items related to restructuring costs ($0.23), integration costs ($0.14), transaction and other costs ($0.08), including the mark to market on our investment in Stabilis.  Offsetting to these addbacks was a reduction to adjusted earnings per share of ($0.07) for tax effect.In the fourth quarter and throughout 2019, we completed the majority of our right sizing cost efforts incurring significant one-time costs but driving $13.2 million of projected annualized cost savings included in our 2020 outlook.  In addition, we completed $25.1 million of integration cost synergies, also included in our 2020 outlook.  These actions were primarily associated with headcount reductions, facility consolidations, operational improvements and product line rationalization. We have completed our first year of ownership of VRV and will no longer include VRV related integration costs in our adjustments going forward.  The business in 2020 will reflect the integration efforts of 2019, including the insourcing of our inner and outer vessels, 12 new customers from the combination of the businesses ($16 million of order synergies with record India orders).  With higher margin backlog as of December 31, 2019 from shipping pre-acquisition low and negative margin orders and standardizing on tank designs, we expect VRV to be at the originally assumed run-rate operating margin of 12% in 2020.Through year end 2019, we have achieved $20 million of our targeted $29 million of cost synergies from the Air-X-Changers integration, with the biggest impact from the completion of the consolidation of three Tulsa, Oklahoma facilities into one.  The remaining $9 million is expected to be completed by June 30, 2020 and will positively impact the second half of 2020.Between the organic restructuring and acquisition synergies, we have completed $38.3 million of expected annualized run-rate savings in 2019.  This, combined with the record order and sales year, contributed to full year 2019 reported diluted earnings per share of $1.32, and when adjusted for one-time costs, $2.52 of adjusted diluted EPS, a 24.8% increase over 2018 adjusted diluted EPS and the highest in our history.  The restructuring and integration completed in 2019 sets 2020 up positively from a gross margin and a SG&A perspective.  Full year gross margins and SG&A both reported and normalized by segment were as follows:Full year normalized SG&A of $195.5 million is 15% of sales, compared to full year 2018 normalized SG&A of $175.4 million, or 16.2% of sales.  The 2020 SG&A run rate is expected to stay at 2019 normalized levels, even inclusive of the additional volume and big LNG included in our outlook.Finally, working capital discipline in 2019 led to free cash flow of $123 million, excluding the acquisition purchase price for the Air-X-Changers purchase and inclusive of the first six-months of 2019 for Air-X-Changers (includes $19.8 million of AXC free cash flow from January to June 2019).OUTLOOK 2020The noisy fourth quarter 2019 is expected to positively impact 2020.  These include: (1) revenue shortfall of $30 million to prior guidance, driven by timing of fourth quarter orders from earlier in the quarter to December or into the first quarter of 2020.  Specifically, we booked over $65 million of orders in the last two weeks of the year and over $120 million in the month of December, none of which could be shipped or recognized as revenue in 2019.  We expect $30 million of fourth quarter 2019 timing changes to be recognized in 2020, with associated diluted earnings per share ($0.15 to $0.20) also in 2020; and (2) inefficiencies from ramp up costs associated with our Big LNG 2020 manufacturing activity and the capacity expansion for trailers and fueling stations in D&S East.  The estimated impact of these costs to diluted earnings per share in the fourth quarter was $0.12 to $0.15 also reflected in our 2020 guidance.  We expect that with the associated volumes in 2020, these inefficiencies will repeat in the first quarter of 2020 but be absorbed by the second quarter.Our 2020 guidance includes one Big LNG project’s revenue (Venture Global Calcasieu Pass).  Any additional Big LNG orders, which we do anticipate receiving in 2020, are not included in the outlook.Revenue:  Our revenue outlook is $1.645 billion to $1.71 billion, compared to the prior total revenue outlook of $1.615 to $1.68 billion.  The increase is driven from the timing shifts of fourth quarter 2019 orders and revenue.  Both guides are and were inclusive of $100 million dollars of Calcasieu Pass related revenue.  While we expect to receive formal notice to proceed (“FNTP”) on Driftwood and Cheniere Corpus Stage 3 Big LNG projects in 2020, these opportunities are not included in our current revenue or earnings per share guidance.Adjusted Diluted EPS:  We expect full year adjusted earnings per diluted share to be in the range of $4.90 to $5.50 per share, on approximately 36.1 million weighted average diluted shares outstanding.  This is an increase from our prior outlook of $4.75 to $5.25 per share.  This excludes any restructuring costs and transaction-related costs, or any dilution associated with our convertible notes, and as such is a non-GAAP measure. Timing within the year: The 2020 outlook is weighted to the second half of the year for both revenue and earnings.  Typically, the first quarter of the year is our lowest quarter, and we expect that will hold true in 2020, with expected results at or slightly below our fourth quarter 2019 results.  Additionally, Calcasieu Pass revenue recognition will primarily be in the third and fourth quarters.Tax rate:  Our 2020 tax rate is assumed at 20%.  This is an improvement from our prior outlook’s tax rate of 21%, driven by the strategic tax planning efforts completed in the fourth quarter of 2019.Capital Expenditures:  Our capital expenditure outlook remains between $35 and $40 million, inclusive of $30 million of maintenance capex and between $5 and $10 million related to our productivity and strategic capacity expansion activities.  Note that this range is consistent with our 2019 actual capital spend of $36.2 million.Free Cash Flow:  Our free cash flow outlook is $180 million to $210 million, inclusive of $30 million of free cash flow related to Calcasieu Pass.FORWARD-LOOKING STATEMENTSCertain statements made in this presentation 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 business plans, including statements regarding completed acquisitions, cost synergies and efficiency savings, objectives, future orders, revenues, margins, earnings or performance, liquidity and cash flow, capital expenditures, business trends, governmental initiatives, including executive orders 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,” “target,” 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:  the Company’s ability to successfully integrate recent acquisitions and achieve the anticipated revenue, earnings, accretion and other benefits from these acquisitions; and the other factors discussed 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.  The Company undertakes no obligation to update or revise any forward-looking statement.This presentation contains non-GAAP financial information, including adjusted earnings per diluted share, net earnings adjusted, and free cash flow.  For additional information regarding the Company’s use of non-GAAP financial information, as well as reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), please see the pages at the end of this news release and the slides titled “Q4 and Full Year 2019 adjusted diluted EPS” and “Free Cash Flow Reconciliation” included in the appendix at the end of this presentation.Chart is a leading diversified global manufacturer of highly engineered equipment servicing multiple market applications in Energy and Industrial Gas.  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 the Americas.  For more information, visit: http://www.chartindustries.com.USE OF NON-GAAP FINANCIAL INFORMATIONTo 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 2020 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 CALLAs previously announced, the Company will discuss its fourth quarter and full year 2019 results on a conference call on Thursday, February 13, 2020 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., entering conference ID 8278408.  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.  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 8278408.  The replay will be available beginning 1:00 p.m. ET, Thursday, February 13, 2020 until 1:00 p.m. ET, Thursday, February 20, 2020.For more information, click here:http://ir.chartindustries.com/See URL below for a link to our Supplemental Information for our 2019 Fourth Quarter and Full Year Results:http://ml.globenewswire.com/Resource/Download/67d8a7db-721e-4e58-ba3a-0da3194d88a2Contact:_______________
(1) Includes sales and operating income for AXC, included in the E&C FinFans segment results since the acquisition date, July 1, 2019 as follows:
Sales were $103.1 and $43.2 for the year and quarter ended December 31, 2019, respectively, andOperating income was $4.6 and $2.0 for the year and quarter ended December 31, 2019, respectively, which included $18.4 and $7.3 of depreciation and amortization expense for the year and quarter ended December 31, 2019, respectively.(2) Includes sales and operating loss for VRV, included in the D&S East and E&C Cryogenics segments results since the acquisition date, November 15, 2018 as follows:Sales were $104.0 (D&S East: $57.1, E&C Cryogenics: $46.9) for the year ended December 31, 2019,Sales were $14.1 (D&S East: $10.3, E&C Cryogenics: $3.8) for the year ended December 31, 2018,Operating loss was $11.2 (D&S East: $9.7, E&C Cryogenics: $1.5) for the year ended December 31, 2019, andOperating (loss) income was $(2.0) (D&S East: $0.2, E&C Cryogenics: $(2.2)) for the year ended December 31, 2018, which included $1.5 of depreciation and amortization expense and $1.6 in expense recognized in the cost of sales related to inventory step-up.(3) Includes depreciation expense of:$11.2 and $7.8 for the three months ended December 31, 2019 and 2018, respectively, and$39.0 and $28.9 for the year ended December 31, 2019 and 2018, respectively.(4) Includes restructuring costs of:$2.3 and $0.9 for the three months ended December 31, 2019 and 2018, respectively, and$15.6 and $4.4 for the year ended December 31, 2019 and 2018, respectively.(5) Includes an expense of $0.2 and $4.0 recorded to cost of sales related to the estimated costs of the aluminum cryobiological tank recall for the three and twelve months ended December 31, 2018, respectively.
(6) Includes transaction-related costs of $5.4 for the year ended December 31, 2019, which were mainly related to the AXC acquisition.  Includes integration costs of $1.6 related to the AXC acquisition for the year ended December 31, 2019.
(7) Includes transaction-related costs of $2.1 for the year ended December 31, 2018, which were mainly related to the VRV acquisition.  Includes integration costs of $2.7 and $0.8 related to the VRV acquisition for the years ended December 31, 2019 and 2018 respectively.
(8) During the year ended December 31, 2018, we recorded net severance costs of $2.3 primarily 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.  Includes net severance costs of $1.4 related to the departure of our former CEO, which includes $3.2 in payroll severance costs partially offset by a $1.8 credit due to related share-based compensation forfeitures for the year ended December 31, 2018.
(9) Includes gain on sale of the CAIRE business of $34.3, net of taxes of $2.6, for the three months and year ended December 31, 2018.
(10) Includes an additional 0.84 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the year ended December 31, 2019.  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 0.82 for the year ended December 31, 2019.
(11) Includes an additional 0.48 and 0.38 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the three and twelve months ended December 31, 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 0.48 and 0.38 for the three and twelve months ended December 31, 2018, respectively.
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(1) Includes proceeds from the sale of CAIRE of $133.5 for both the three and twelve months ended December 31, 2018.
(2) Includes restricted cash and restricted cash equivalents of $1.0 for all periods presented.


CHART INDUSTRIES, INC. AND SUBSIDIARIES
OPERATING SEGMENTS (UNAUDITED)
(Dollars in millions)
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(1) Includes sales and operating income for AXC, included in the E&C FinFans segment results since the acquisition date, July 1, 2019 as follows:
Sales were $103.1 and $43.2 for the year and quarter ended December 31, 2019, respectively, andOperating income was $4.6 and $2.0 for the year and quarter ended December 31, 2019, respectively, which included $18.4 and $7.3 of depreciation and amortization expense for the year and quarter ended December 31, 2019, respectively.(2) Includes sales and operating (loss) income for VRV, included in the D&S East and E&C Cryogenics  segments results since the acquisition date, November 15, 2018 as follows:Sales were $104.0 (D&S East: $57.1, E&C Cryogenics: $46.9) for the year ended December 31, 2019,Sales were $14.1 (D&S East: $10.3, E&C Cryogenics: $3.8) for the year ended December 31, 2018,Operating loss was $11.2 (D&S East: $9.7, E&C Cryogenics: $1.5) for the year ended December 31, 2019, andOperating (loss) income was $(2.0) (D&S East: $0.2, E&C Cryogenics: $(2.2)) for the year ended December 31, 2018, which included $1.5 of depreciation and amortization expense and $1.6 in expense recognized in the cost of sales related to inventory step-up.(3) Restructuring costs for the three months ended:December 31, 2019 were $2.3 ($0.4 – D&S East, $0.1 – D&S West, $0.1 – E&C Cryogenics, and $1.7 – E&C FinFans).December 31, 2018 were $0.9 ($0.8 – D&S East, $0.2 – E&C Cryogenics, and a credit of $0.1 – Corporate)(4) Restructuring costs for the twelve months ended:December 31, 2019 were $15.6 ($8.5 – D&S East, $0.9 – D&S West, $2.5 – E&C Cryogenics, $3.5 – E&C FinFans, and $0.2 – Corporate).December 31, 2018 were $4.4 ($1.4 D&S East, $0.6 – E&C Cryogenics, $0.1 – E&C FinFans, and $2.3 – Corporate).(5) Includes an expense of $0.2 and $4.0 recorded to cost of sales related to the estimated costs of the aluminum cryobiological tank recall for the three and twelve months ended December 31, 2018, respectively.
(6) Includes transaction-related costs of $5.4 for the year ended December 31, 2019, which were mainly related to the AXC acquisition.  Includes integration costs of $1.6 related to the AXC acquisition for the year ended December 31, 2019.
(7) Includes transaction-related costs of $2.1 for the year ended December 31, 2018, which were mainly related to the VRV acquisition.  Includes integration costs of $2.7 and $0.8 related to the VRV acquisition for the years ended December 31, 2019 and 2018 respectively.
(8) During the year ended December 31, 2018, we recorded net severance costs of $2.3 primarily 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.  Includes net severance costs of $1.4 related to the departure of our former CEO, which includes $3.2 in payroll severance costs partially offset by a $1.8 credit due to related share-based compensation forfeitures for the year ended December 31, 2018.

 _______________
(1) E&C Cryogenics segment orders for the year ended December 31, 2019 includes a $23 million order for a propane dehydrogenation plant.  E&C Cryogenics segment orders for the year ended December 31, 2018 includes a $13 million order for equipment for a natural gas liquids fractionation project.  This order shipped partially in 2018, and the remainder shipped in 2019.
(2) E&C FinFans segment orders includes $28.7 and $52.2 in orders related to AXC for the three months and twelve months ended December 31, 2019, respectively.
(3) Includes $11.2 in orders related to VRV (D&S East: $8.7, E&C Cryogenics: $2.5) for the twelve months ended December 31, 2018.
(4) Included in the E&C Cryogenics segment backlog for all periods presented is approximately $40 million related to the previously announced Magnolia LNG order.
(5) E&C FinFans segment backlog as of December 31, 2019, September 30, 2019 includes $31.5 and $47.7 related to AXC, respectively.
(6) Includes $31.5 in backlog related to AXC as of December 31, 2019 and $81.6 in backlog related to VRV (D&S East: $42.3, E&C Cryogenics: $39.3) as of December 31, 2018.

  _______________
(1) During 2019, we recorded $15.6 of restructuring costs primarily related to the consolidation of certain of our facilities including facility consolidation in our E&C FinFans segment, as well as departmental restructuring, including headcount reduction and streamlining commercial activities within our Lifecycle business in our previous E&C segment and geographic realignment of manufacturing capacity in D&S East.
(2) Includes $2.3 in expense recognized in cost of sales related to inventory step-up for 2019 related to VRV.  We also incurred $0.8 and $1.6 related to AXC integration activities during the three and twelve months ended December 31, 2019, respectively and $1.0 and $2.7 related to VRV integration activities during the three and twelve months ended December 31, 2019, respectively.
(3) Includes an expense of $0.2 and $4.0 recorded to cost of sales related to the estimated costs of the aluminum cryobiological tank recall for the three and twelve months ended December 31, 2018, respectively.
(4) Includes gain on sale of the CAIRE business of $34.3, net of taxes of $2.6, for the year ended December 31, 2018.
(5) Includes an additional 0.84 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the year ended December 31, 2019.  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 0.82 for the year ended December 31, 2019.
(6) Includes an additional 0.48 and 0.38 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the three and twelve months ended December 31, 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 0.48 and 0.38 for the three and twelve months ended December 31, 2018, respectively.
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.
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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.

_______________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. 
 
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Adjusted gross profit, adjusted gross profit margin and adjusted selling, general and administrative expenses are not measures of financial performance under U.S. GAAP and should not be considered as an alternative to gross profit, gross profit margin and selling, general and administrative expenses in accordance with U.S. GAAP.  Management believes that adjusted gross profit, adjusted gross profit margin and adjusted selling, general and administrative expenses facilitate useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance.  Our calculations of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.

Cannabis

Canada’s Legal Cannabis Industry Advocates for Equitable Financial Treatment

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Toronto, Ontario–(Newsfile Corp. – March 27, 2020) – The regulated cannabis industry has recently united to address a critical issue it has faced since its inception: a lack of equitable access to banking services and financial support. The fallout from the COVID-19 pandemic has highlighted the need to fix this while demonstrating that cannabis is an essential product.

We commend the individuals and organizations that have been vocal in their support for the cause: Don Davies (MP), Nathaniel Erskine-Smith (MP), Scott Reid (MP), Dan Sutton (Tantalus Labs), The Canadian Chamber of Commerce, and the Cannabis Council of Canada. Their lobby efforts have been directed towards the Business Development Bank of Canada (BDC), Bill Morneau P.C., M.P. (Minister of Finance), and Navdeep Bains P.C., M.P. (Minister of Innovation, Science and Industry), in an attempt to influence federal decision makers.

In solidarity, Alan Aldous has created an educational website to highlight the positive contributions to the Canadian economy, www.LegalTender.ca. We have also organized a coalition of industry experts, associations, and companies to advocate for change, including the Cannabis Council of Canada, NORML Canada, the British Columbia Independent Cannabis Association, the Ontario Independent Cannabis Association, the Alberta Cannabis Micro Licence Association, and The Cannabis Conservatory.

“The cannabis industry is doing its best to provide Canadians with an uninterrupted supply of legal cannabis, but it is not immune to the effects of COVID-19. Cannabis businesses deserve access to the same financial support being made available to other industries. Cannabis sector jobs are just as worthy of protection as any other,” says Trina Fraser, a prominent cannabis industry lawyer at firm Brazeau Seller Law.

In just one day, hundreds of Canadians have signed this urgent petition (https://bit.ly/2QKvwTQ) advocating for equitable treatment by the Business Development Bank of Canada (BDC) and Federal Government of Canada. We are thrilled by the response so far, and encourage hard-working Canadians to sign, share, and have their voices heard.

About Alan Aldous

Alan Aldous is a public relations agency for the emerging cannabis and psychedelics markets led by leading Canadian cannabis media professionals. The agency works with all the major newswire distribution services across North America, which makes transitioning to Alan Aldous easy for companies with existing PR efforts.

For media contact Alex Krause, Head Publicist, 519-835-8345, alex@alanaldous.com.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/53883

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REPEAT – AgraFlora Organics’ GTA Facility Receives Amendments Necessary to Launch CBD Business

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VANCOUVER, British Columbia, March 27, 2020 (GLOBE NEWSWIRE) — AgraFlora Organics International Inc.  (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF) is pleased to announce its wholly owned subsidiary Sustainable Growth Strategic Capital Corp. (“SGSC”), a federally licensed cannabis company based in the Greater Toronto Area (GTA), has received Health Canada approval to commence extraction at its licensed facility pursuant to an amendment to its Standard Processing License.  SGSC also holds Standard Cultivation and Medical Sales Licenses issued pursuant to the Cannabis Act.
SGSC has been actively engaged in the Canadian CBD business, working with partner farmers to optimize the harvest to hemp-crops to maximize the efficiency of subsequent CBD extraction.  In March, SGSC commenced a trial extraction (the “Trial”) of hemp-biomass which will be extracted using third-party extraction services and sold as a combination of CBD Crude Oil, CBD Distillate and CBD Isolate to Canadian purchasers.  If the Trial yields favourable results with respect to product quality, efficiency and margin SGSC intends to move quickly with a second production cycle of up to 1,300 KG of high-quality hemp biomass containing CBD concentrations over 8%.The current SGSC facility is designed to facility up to 250,000 kg of biomass extraction capacity utilizing chilled ethanol for primary extraction followed by distillation and/or isolation.   SGSC intends to use the Trial and subsequent third party extraction cycles to properly design and size its in-house extraction capacity to maximize the profitability and return on capital invested.   Once built, SGSC intends to improve its profitability by reducing the cost of extraction, purification and fulfilment by bringing those processes in-house. About AgraFlora Organics International Inc.AgraFlora Organics International Inc. is a growth oriented and diversified company focused on the international cannabis industry. It owns an indoor cultivation operation in London, ON and is a joint venture partner in Propagation Services Canada Inc. and its large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The Company is also retrofitting a 51,500-square-foot good manufacturing practice (“GMP”) edibles manufacturing facility in Winnipeg, Manitoba. AgraFlora has a successful record of creating shareholder value and is actively pursuing other opportunities within the cannabis industry. For more information please visit: www.agraflora.com.ON BEHALF OF THE BOARD OF DIRECTORSBrandon Boddy
Chairman & CEO
T: (604) 398-3147 
The CSE and Information Service Provider have not reviewed and does not accept responsibility for the accuracy or adequacy of this release.Forward-looking Information Cautionary StatementExcept for statements of historic fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CSE. There are uncertainties inherent in forward-looking information, including factors beyond the Company’s control. There are no assurances that the business plans for AgraFlora Organics described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators, which are available at www.sedar.com.

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Israel Begins Cannabis Exports to Meet Unmet Medical Needs — CFN Media

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Seattle, Washington–(Newsfile Corp. – March 27, 2020) – CFN Media (OTCQB: CNFN), the leading agency and financial media network dedicated to the legalized North American cannabis industry announces publication of an article discussing how Israel has shipped the first cannabis export to the UK, marking a new era in Israeli cannabis.

Israel has long been an international center for cannabis research. THC, the psychoactive ingredient in cannabis, and CBD, the plant’s predominant non-psychoactive ingredient, were first isolated and defined by Israeli researcher Dr. Raphael Mechoulam in the early 1960s. Research continued there in the following decades, and the Israeli government has contributed greatly to the country’s prominence in the global cannabis industry.

In Israel, medical cannabis is legal while recreational use remains technically illegal, though the government decriminalized recreational use to some extent in 2017. Government agencies provide funding for cannabis research. In January 2019, the government passed a law to allow exports of medical cannabis, though the first export was announced a year later in January 2020. With that recent development, the table appears set for growth in the Israeli cannabis market.

Click below to view more on Isracann Biosciences – Israel’s First Pure Play Cannabis Firm

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Unmet Need in Europe

BOL Pharma is the Israeli company that announced the first export from the country, with a shipment destined for centers that specialize in the treatment of children with epilepsy and autism in the United Kingdom. The company’s CEO, Dr. Tamir Gedo, stated, “This is truly welcome news and a real breakthrough for the Israeli medical cannabis market. The Israeli cannabis industry has a huge competitive edge in the global arena, compared to many countries trying to enter the cannabis sector… Further opening of the market to exports will enable Israel to become a world leader in the coming years.”

Click Here To Receive Isracann’s Investor Presentation

The UK legalized medical cannabis in late 2018. Since then, patients have had a hard time getting prescribed treatments in a timely fashion, with most of the supply coming from foreign countries but facing restrictive regulations. As a result, in early March 2020, the UK government announced a change in import restrictions designed to increase the flow of timely medicinal products to registered patients.

This dynamic is common throughout Europe, with countries adopting medical programs without the infrastructure, both regulatory and physical, to provide supply to its own patients. Israel, with its strategic location combined with governmental commitment to the industry, is in prime position to pick up some of the slack.

Isracann Biosciences Poised to Move

Isracann Biosciences Inc. (CSE: IPOT) (OTC: ISCNF) is an Israeli-based cannabis company poised to enter both the Israeli domestic and the European export cannabis markets. The company is advancing its fully-funded 230,000 sq ft hybrid greenhouse cultivation project while also advancing a partnership with a late stage project consisting of approximately 200,000 sq ft of greenhouses located on over 880,000 sq ft of agricultural land. In conjunction with the cultivation projects, Isracann is developing European distribution channels while ensuring that all aspects of its business, from cultivation through processing and manufacturing, comply with European Union GMP regulations necessary for international trade.

While laying the groundwork for an extensive European export operation, the company is certainly not foregoing the burgeoning domestic opportunity in Israel. The country, as of late 2019, had about 46,000 registered patients. Isracann expects this number to roughly double by the end of 2020, by which time the company hopes to be harvesting and distributing products.

The company recently announced a joint venture agreement with two near-term farm operations in the Sharon Plain region of Israel. The IMC-compliant farms operate under preliminary cannabis nursery and cultivation licenses and are preparing to commence planting within weeks with 160,000 sq. ft. of greenhouse canopy on two million sq. ft. of private land. The move paves the way for the company to ramp up sales faster than it expected and could help drive near- and long-term shareholder value.

In a recent two-part interview with CFN Media, Isracann Biosciences CEO Darryl Jones outlined the company’s strategy, assets, and partnerships. He talked about some of the advantages inherent in the Israeli market (ideal climate for cultivation, regulatory environment, advanced research, widespread domestic use, proximity to Europe, etc.).

Click Here To Receive Isracann’s Investor Presentation

CEO Video Interview #1

Click Below to View Video Interview #1: Isracann Biosciences CEO Darryl Jones 

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Click Below to View Video Interview Part #2: Isracann Biosciences CEO Darryl Jones

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Looking Ahead

The very first medical cannabis shipment from Israel to the UK marks a new era in the promising Israeli cannabis industry. With the country’s government backing research and development efforts, as well as implementing rules to encourage growth of the industry both domestically and internationally, Israel has cemented its place as a leader for the global cannabis market. The year ahead promises to be pivotal for both the industry in general, and for Isracann Biosciences in particular as the company executes its vision of a comprehensive farm-to-consumer cannabis company. Keep an eye out as the plan unfolds.

Click Here To Receive Isracann’s Investor Presentation

Click here to read the full article: https://bit.ly/2QNGwA1

Click Here to Receive CFN Media’s Newsletter Every Week in Your Inbox

Isracann Biosciences
CEO
Darryl Jones
Djones@isracann.com
855-205-0226

CFN Enterprises
President
Frank Lane
206-369-7050
Flane@cannabisfn.com

About CFN Media

CFN Enterprises Inc. (OTCQB: CNFN) is the owner and operator of CFN Media, the leading agency and digital financial media network dedicated to the legal cannabis industry.

For Visitors and Viewers

CFN Media’s Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive content and original programming involving the people, companies and investments shaping the industry.

For Cannabis Businesses & Companies

CFN Media is a leading agency and financial media network dedicated to the cannabis industry. We help private, pre-public and public cannabis companies in the US and Canada attract capital, investors and media attention.

Our powerful digital media and distribution platform conveys a company’s message and value proposition directly to accredited and retail investors and national media active in the North American cannabis markets.

Since 2013, CFN Media has enabled the world’s preeminent cannabis companies to thrive in the capital and public markets.

Learn how to become a CFN Media client company, brand or entrepreneur: https://www.cannabisfn.com/become-featured-company/

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/53879

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