Good morning and welcome to the Chart Industries 2015 First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. As a reminder, today's call is being recorded. You should have already received the company's earnings release that was issued earlier this morning. If you have not received the release, you may access it by visiting Chart's website at www.chartindustries.com. A telephone replay of today's broadcast will be available following the conclusion of the call until Thursday, May 7. The replay information is contained in the company's earnings release. Before we begin, the company would like to remind you that statements made during this call that are not historical in fact are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in the forward-looking statements. For further information about important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, please refer to the information regarding forward-looking statements and risk factors included in the company's earnings release and latest filings with the SEC. These filings are available through the Investor Relations section of the company's website or through the SEC website, www.sec.gov. The company undertakes no obligation to update publicly or revise any forward-looking statements. I would now like to turn the conference call over to Michael Biehl, Chart Industries' Executive Vice President and CFO. You may begin your conference. Michael F. Biehl - Executive Vice President & Chief Financial Officer: Thank you, Tyrone. Good morning, everyone. I'd like to thank you all for joining us today. Begin by giving you a brief overview of our first quarter results, and then Sam…

Thank you. Our first question is from Tom Hayes Northcoast Research. Your line is now open.

Thank you. Good morning, gentlemen. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Good morning, Tom. Michael F. Biehl - Executive Vice President & Chief Financial Officer: Good morning, Tom.

Hey, fellows, you provided some good commentary on the pricing trends you're seeing on E&C. I'm just wondering if maybe you provide a little bit similar color what you're seeing on the D&S side. Samuel F. Thomas - Chairman, President & Chief Executive Officer: It's a similar situation. We've got everyone chasing diminished order prospects. And as you'd expect in that situation, pricing is competitive.

Okay. And then, I was just wondering if there's any update you could provide on the PetroChina shipment outlook, for the orders? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Not a lot. PetroChina has been taking equipment and has indicated they expect to see more. But there is still a fair amount of turmoil and uncertainty in the Chinese market and for the nationally owned companies in particular.

Okay, thank you.

Thank you. Your next question is from Walter Liptak of Global Hunter. Your line is open.

Thanks. I wanted to ask one on the Venture Global and other larger projects. I wonder if you could help us understand the size of those market opportunities and what are some of the factors that you're thinking about in terms of timing. I think you mentioned late this year, or as early as late this year you might see some orders come through. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Yes. As I've said, we're looking on advanced engineering contracts. Each of those companies have announced the size of their potential projects in terms of millions of ton per atom output. They are larger because it is our process technology and we're providing a complete package. The opportunities are larger than others we've historically had. It could be as much as 2 times to 3 times as big as we reported in previous LNG awards. In terms of timing and to what the ultimate size of those orders are, that's dependent on the final investment decisions and, for them, obtaining contracts for the output of those plants. So, there's not much point in speculating further as to timing of awards beyond what's been announced.

Okay. Okay, great. Thank you.

Next question is from Noah Kaye of Northland Capital. Your line is open.

Yes, thank you. You talked about quotations for transport on rail cars. As regulatory guidelines for LNG in rail car transport evolve, what's your view on when that market starts to come online, perhaps in North America specifically, and how big do you think that can be for you? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Very difficult to forecast timing or the ultimate market size. There's a wide range of possibilities from 10% penetration for locomotive fueling over a two-year, three-year, four-year time period with primarily being prototype or beta type units going into service to ultimately replacing all of the rail fleet with LNG-powered units. But based on the long life of the equipment and the conservative nature of the rail industry in making that kind of move, I think for a significant penetration you're talking about time periods that are in the 8- to 15-year time period.

Sure, sure. And then, also you alluded to the increased global competition. I think your comments were focused on E&C, so we could just stay there. What, in your mind, would be some catalysts that can remove that overhang and open up more market opportunities for folks? What are you seeing in terms of the industry trajectory at this point? Samuel F. Thomas - Chairman, President & Chief Executive Officer: That industry has traditionally been capital spending or business cycle dependent, and increased demand, which can be driven by either higher energy prices or a growing global economy, will create additional demand for products. Pricing levels in the industry tend to be driven by utilization of capacity.

Okay, thanks. And then, maybe we could be a little bit more precise on what the head count and Owatonna reduction will mean for your capacity. Once that facility is closed, where would you put your capacity utilization at for your LNG D&S production? How much run room would you have if the market starts to come back? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Significant. With respect to LNG distribution and storage related capacity, we'll be at less than 50% of our available capacity.

Okay, that's very helpful. Thank you so much.

Thank you. Our next question is from Chase Jacobson from William Blair. Your line is open. Chase A. Jacobson - William Blair & Co. LLC: Hi, good morning. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Good morning, Chase. Michael F. Biehl - Executive Vice President & Chief Financial Officer: Good morning. Chase A. Jacobson - William Blair & Co. LLC: So looking at the guidance here, understanding that the first quarter is seasonally weak and there were some currency headwinds, it still assumes a pretty good pickup in sales as well as margin over the next three quarters. And, Sam, from your comments, there's clearly a good bit of uncertainty in the markets, whether it's in E&C or D&S. So, maybe if you could just talk to the confidence level in your guidance. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Our guidance is based on bottom-up forecasts in all of our businesses, which we go through a formal process on a quarterly basis and we update on a monthly basis. The first quarter was weak. I think that's evidenced by reports from the energy industry as well as the first quarter reports from the industrial gas industry. But all of those markets, we either have confirmed delivery schedules that appear significantly better in the second half, assuming the second quarter – that the first quarter was also better in the second half. And then at a macro level, there appears to be some stabilization of oil prices, and reducing uncertainty, I believe, will improve demand and order intake. And I remain convinced that that's a reasonable assumption to make. Chase A. Jacobson - William Blair & Co. LLC: Okay. And then on the capital allocation, obviously the markets didn't play out the way many…

Our next question is from Eric Stine of Craig-Hallum. Your line is open.

Hi, Sam. Hi, Michael. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Good morning, Eric.

Maybe just touching on orders, I know on the last call late February you indicated that you didn't feel like you'd really seen the full impact yet. And so, just wondering can you talk about maybe some of your discussions with customers, what you saw in March and maybe an early read on orders in the second quarter? Samuel F. Thomas - Chairman, President & Chief Executive Officer: I stand by the comments I made in February that we've seen more negative news since our February call. However, I think I would deem those comments from customers more on the fact of we're not quite sure what happened in the first quarter but it was ugly. But we don't see signs of customers throwing in the towel and saying we're closing up shop for the rest of the year, but we expect to see prospects improve. And I think generally, that's holding out from what we're seeing.

Okay. So, I mean, you are seeing some positive trends here in April? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Yeah. Nothing that's causing dancing in the streets or dancing in our hallways, but yes.

Okay, understood. Thanks for that color. Maybe then, just turning to the balance sheet, it looks like you had some working capital that impacted the first quarter. Looking back historically, it didn't happen in 2014. But in typical first quarters, that seems like it's the case. Maybe just some clarity there and expectations going forward. Samuel F. Thomas - Chairman, President & Chief Executive Officer: I would say that first quarter order rates and customer delivery uptake, particularly with regard to China, are the major causes of the increase in first quarter working capital. In other words, we were building to expected delivery schedules or order intake rates, both of which were disappointing in the first quarter, promise is that that's going to improve in the second quarter and the second half of the year, but we'll see.

Okay. Maybe last one for me. Just floating LNG, you've been involved in the past, and you did the first – Golar's first ship conversion. I know that they've moved forward on a second and potentially more, just thoughts on your potential involvement there. Thanks a lot. Samuel F. Thomas - Chairman, President & Chief Executive Officer: We still remain positive about it. For all of the LNG projects, there's a period of reflection as significant new LNG is coming online and off-take customers have been slow to make commitments in an environment where spot prices have been dropping. I think that long term, the price outlook is such that these projects will go ahead, but the near-term timing of them is difficult to predict based on that uncertainty.

Okay, thank you.

Our next question is from Alex Potter of Piper Jaffray. Your line is open. Alexander E. Potter - Piper Jaffray & Co (Broker): Thank you. I was wondering if you could comment a bit specifically on China D&S orders maybe over the last month or so. Obviously, that wouldn't have been reflected in Q1, but was just wondering what sort of impact that natural gas price cut domestically had in China on, I guess, A, your existing order rates right now and your expected order rates over the next couple of quarters. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Improved but muted against expectations I guess would be the best characterization, Alex. We've got significant quotation activity, potential orders and orders coming through. But I think the view is that orders and delivery will be ramped and delivery requests will be ramping up in the second quarter and third quarter. Last year, order activity and shipping activity were heavily second-half-weighted and there's an anticipation that we may be seeing a repeat of that process. So, I guess the response is it hasn't been as strong as we'd hoped. There is apparently good traction for LNG replacement on the coastal areas where you've got low contract prices for imported LNG and even lower spot market prices, less traction for liquefiers that are based on pipelines where there hasn't been full adjustment of pipeline gas prices down to make LNG attractive for the liquefiers. Alexander E. Potter - Piper Jaffray & Co (Broker): Okay, fair enough. Thanks very much for that. I was wondering also I guess maybe a little bit more color on ForEx. You've kept the guidance range constant, but presumably your view on ForEx has changed over the last quarter. So, I'm wondering if it would…

Our next question is from Rob Brown of Lake Street Capital. Your line is open.

Hi, good morning. Just wanted to... Michael F. Biehl - Executive Vice President & Chief Financial Officer: Hi, Rob. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Rob.

...touch on the – Hi. I'd like to just touch on the E&C order cancellation, I guess. How much of your backlog is at risk of potential order cancellations? And is that something you sort of feel like has worked through, or is that still something that we could see more of? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Currently, I would think that the impact of any additional cancellations would be minor. That's always challenging, but typically as we move into our backlog the customer's skin in the game is more significant. Having said that, I've been surprised in the past with customers cancelling projects that were fairly well along. It typically, because of contractual arrangement, doesn't have a significant negative financial impact on us. So, I guess the best answer to it is unknown... Michael F. Biehl - Executive Vice President & Chief Financial Officer: Yeah... Samuel F. Thomas - Chairman, President & Chief Executive Officer: ...although I don't think it's dramatic. It hasn't historically been dramatic. Michael F. Biehl - Executive Vice President & Chief Financial Officer: No, I was going to say, I think the most we've seen in a down cycle in prior years is about $20 million. And right now, we don't expect it to be at that level, but it's hard to say.

Okay, thank you. And then, kind of the same question on the margins with the D&S segment, how do you see that margin kind of playing out sequentially? Michael F. Biehl - Executive Vice President & Chief Financial Officer: Again, they're in the high-20%s, would expect them to maybe notch down 1%, 1.5% over the remainder of the year based upon the product mix going forward. And again, that could change depending upon whether we have more in China or more here in the U.S. or Europe. That pushes it around somewhat.

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

Our next question is from Greg McKinley of Dougherty. Your line is open. Gregory John McKinley - Dougherty & Co. LLC: Yes, thank you. And I apologize, you may have literally just answered this question and I didn't hear it. I was going to ask backlog margins in D&S, was that the 1% to 1.5% points you just mentioned? Michael F. Biehl - Executive Vice President & Chief Financial Officer: Yeah, in terms of the margins for the year, yeah. Gregory John McKinley - Dougherty & Co. LLC: Yes, and that was specific to D&S margins? Michael F. Biehl - Executive Vice President & Chief Financial Officer: Yes, correct. Gregory John McKinley - Dougherty & Co. LLC: Okay. Michael F. Biehl - Executive Vice President & Chief Financial Officer: You're getting predictable, Greg. We can anticipate your questions. Gregory John McKinley - Dougherty & Co. LLC: Yeah, that's right. So, you guys had talked about a $30 million in annualized cost savings. Now, how should we think of that in terms of is that a reduction to the operating expense structure as it existed, call it, at the beginning of the year, or is that the absence of increases to the cost structure that might have been planned previously? I guess maybe sort of trying to get at what does G&A look like in the context of the $30 million reduction. Michael F. Biehl - Executive Vice President & Chief Financial Officer: It's mostly head count reduction. I mean I would say 90%, 95% of it is head count reduction. But keep in mind that $30 million is on an annualized basis. So with restructuring costs and severance and things like that, the impact in the current year, it also gets offset by lower capacity and throughput. Samuel F. Thomas…

Our next question is from Rob Norfleet of Alembic Global. Your line is open.

Hi, guys. Thanks so much for taking our call today. This is actually Nick Chen, filling in for Rob Norfleet on the call. Our question, just pertaining to the last several quarters, you guys have had some discussion just about your IP in China and just trying to protect that. Can you give us any updates in that area? Samuel F. Thomas - Chairman, President & Chief Executive Officer: No changes. It's a challenging area. China is a hyper-competitive market. But we don't see any changes in our ability to protect our IP significantly over the last few quarters. It's a continuous challenge and battle, but we think we're well equipped to fight it.

Okay, great. And then, we touched on it a little earlier in the call, sort of from more of a surface level, but I was wondering, in terms of FLNG projects, are you guys tracking the potential of the opportunity in that market? Samuel F. Thomas - Chairman, President & Chief Executive Officer: We are, yes, in our project pipeline, although I'll admit I'm not close enough to it to comment in specifics as to what the current projects in the pipeline are. I know there are a number of them, but I'm not close enough at the moment to give you an idea of how far away each of them are.

That's great. Thanks so much, guys.

Next question is from Pavel Molchanov of Raymond James. Your line is open. Pavel S. Molchanov - Raymond James & Associates, Inc.: Hey, guys. Going back to the two LNG export facilities that you have to feed contracts with, if you were to get a cold box order from either one at the end of 2015, which you said might be a possibility, what would the revenue recognition for that look like? In other words, would it be like a two-year cycle? What's the time table? Samuel F. Thomas - Chairman, President & Chief Executive Officer: Nominally, it would be a 18-month to 30-month cycle. Both of these facilities are multiple trains, so the delivery of cold boxes for them would be spread over that time period. And revenue recognition typically for projects of that size doesn't start until two to three months after receipt of a firm purchase order. But these facilities (52:33)... Pavel S. Molchanov - Raymond James & Associates, Inc.: Got it, yeah. Samuel F. Thomas - Chairman, President & Chief Executive Officer: ... they have project time lines going out to 2018, or in some cases into 2019. Pavel S. Molchanov - Raymond James & Associates, Inc.: Okay, that's helpful. And then on the shutdown of Owatonna that you alluded to, was there something specific in the last three months that sort of got you over the hump to actually pulling the trigger on that shutdown? I mean clearly the domestic LNG opportunity has been weak for a while, but what happened that got you to make that decision? Samuel F. Thomas - Chairman, President & Chief Executive Officer: There's two aspects to it. Since we had added the Owatonna facility, which was a leased facility, we had also increased capacity at our fully-owned facility in New Prague 30 miles away. And then, in the fourth quarter and early first quarter, with the continued fall of oil prices that slowed activity down for – and also the reduction in drilling, slowed down the supply of diesel fuel replacement equipment for oil production, was really the deciding factor. So, we had developed the ability to produce the products produced in Owatonna at other sites. And also, the near term, and I'll say through 2015, prospects for equipment to the heavy-duty diesel fuel replacement market, particularly for oil and gas production looked moribund. Pavel S. Molchanov - Raymond James & Associates, Inc.: Got it. Appreciate the color, guys. Thank you.

Our next question is from Jeff Osborne of Cowen & Company. Your line is open. Jeffrey Osborne - Cowen & Co. LLC: Great. Good morning. I just had two quick questions. One is on the Shell Rotterdam facility. What's the pipeline for additional D&S applications in Europe, and is it all trucking-related or is there any other end market that's driving that? Samuel F. Thomas - Chairman, President & Chief Executive Officer: No. Shell and others continue to be interested in building out the infrastructure in Europe for the trucking market. Perhaps, one where there's greater activity and greater potential in the near term is for the marine market. Jeffrey Osborne - Cowen & Co. LLC: Great. Okay. And the last question I had was just you talked about the D&S weakness in China, I was wondering if you could just touch on the low pressure E&C side, the Wuxi acquisition that you made some time ago, is there any activity there or is that in a weaker position than even the D&S side? Samuel F. Thomas - Chairman, President & Chief Executive Officer: There is activity. There's continuing customer approvals and work going through there, but the demand for their products is very weak right now. There is very little LNG liquefaction activity going on because there's a number of plants that have been compete. There's been a large slug of new capacity for liquefaction in China completed over the last year. And at current pipeline gas prices is under-utilized, so not many prospects for orders there. With lower industrial activity, there's relatively little air separation progress going on right now or orders going on. Jeffrey Osborne - Cowen & Co. LLC: Understand it. Appreciate the comments. Thank you.

Thank you Next question is from Anjali Voria of Thompson Research. Your line is open.

Good morning. I think you guys have touched a lot on the natural gas side. Within D&S, I was wondering if you could speak to your industrial gas categories. I think you mentioned those are up year-over-year. I assume that growth rate's decelerated from Q4, and I was wondering if you could provide an indication of what that deceleration looked like or where growth rates were in Q4 versus Q1, and what you customers are saying now that we're in Q2. Samuel F. Thomas - Chairman, President & Chief Executive Officer: So I think it's – perhaps, I'll cover it across the three regions. In North America, we've seen through the second half of last year improving industrial gas activity. I would call the first quarter a plateauing of that demand. It continued strong in package gasses, less so in larger bulk tanks. But customers, and you can see it reflected in the first quarter reports of the industrial gas companies, saying that activity was down, that generally everybody was impacted more by the pull-back in energy-related capital expenditure than they'd anticipated. General industrial applications, I would say, going forward, our customers continue to be positive about increasing activity levels or a continuation of the activity levels. For Europe, we did see a significant slowdown in activity at the end of the first quarter in March, whereas we seem to have been building momentum and we have seen challenging price competition in Europe although the business has continued to perform well. In China, there was definitely the view that first quarter activity levels were low, that there was a pull-back in activity across-the-board. It's sometimes very difficult to read in China in the first quarter because of Chinese New Year, and Chinese New Year was later this year and that tends to just reduce activity for a longer period of time. But I would say overall, U.S., positive and continued positive, although a bit muted as you see GDP forecasts come down for the rest of the year. That reads through into expected demand. China uncertain, although still believe that the government will be able to stimulate things to have a better second half than first quarter. And Europe should be positive, but that wasn't evidenced in orders.

Just for clarification, do you perceive there to be a lag of – when you think about the slowdown at some customers, do you perceive there to be a lag in that – well, it's actually reflected in your sales – or do you think you immediately see that slowing in your sales based on what your customers have said? Samuel F. Thomas - Chairman, President & Chief Executive Officer: No definitive answers, because we've got significantly different lead times for our products. The products that have the shortest lead times, we generally take to be the leading indicators. Those are generally positive. It's tough to predict on some of the longer lead time products. And then, for our longer lead time products, our customers' time lines are also longer, so it's difficult to read.

And just one last question. Could you clarify on the cost savings announcement – last quarter I think it was $20 million, now I think you ramped it up to $30 million. Did you reach the full what would have been $5 million sort of run rate in Q1 in terms of cost savings, or was it perhaps a little bit more than that or less? Samuel F. Thomas - Chairman, President & Chief Executive Officer: I would suspect not, because some of those actions occurred in December but a number of them occurred in February or March. So, no, I would not anticipate that a full $5 million of savings was achieved in the first quarter.

Okay. Well, thank you.

Thank you. This ends the Q&A portion of today's conference. I'd like to turn the call over to Sam Thomas for any closing remarks. Samuel F. Thomas - Chairman, President & Chief Executive Officer: Thank you. Well, as we've spoken about throughout this call and also last quarter, 2015 is a challenging year. We expect to see some growth in our D&S industrial gas and BioMedical markets but expect that growth to be realized in the second half of the year rather than the first. In the meantime, we'll continue to focus on improving operations and aggressive cost cutting while serving our customers at the same high standards they've come to expect from Chart. We've demonstrated our ability to successfully manage and execute through cyclic downturns in the past, and we'll do so again. We will also continue to pursue our long-term strategic growth initiatives, including opportunistic acquisitions, and we'll be ready and able to respond when the cycle turns and growth returns, which it will. Thank you, everyone, for listening today. Good bye.

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program. You may now disconnect. Have a wonderful day.