Press Release

CIRCOR Reports Third-Quarter 2015 Financial Results

November 9, 2015 at 8:13 AM EST

BURLINGTON, Mass.--(BUSINESS WIRE)--Nov. 9, 2015-- CIRCOR International, Inc. (NYSE:CIR), a leading provider of valves and other highly engineered products for markets including oil & gas, power generation and aerospace & defense, today announced financial results for the third quarter ended October 4, 2015.

Third-Quarter 2015 Highlights

  • Revenues of approx. $160 million consistent with expectations
  • Adjusted EPS of $0.64
  • Cost control and restructuring actions continue to drive bottom-line performance
  • Closing Brazil manufacturing facility in line with margin improvement strategy
  • Energy adjusted operating margin at 15.4%
  • Aerospace & Defense adjusted operating margin at 9.1%

“CIRCOR delivered solid results for the third-quarter of 2015 as we demonstrated good progress on our margin expansion and simplification strategy,” said Scott Buckhout, President and Chief Executive Officer. “We delivered strong year-over-year sales growth in our long-cycle, large projects and control valve businesses. As expected, we continue to see significant weakness in our North American, short-cycle distributed valves business. On the Aerospace side, strength in our commercial fluid controls business was offset by lower sales of defense-related programs.”

“Today we are announcing the decision to close our manufacturing facility in Brazil as a result of the difficult economic conditions there and the ongoing challenges of Petrobras, our largest customer,” said Buckhout. “CIRCOR Brazil has reported substantial operating losses every year since it was acquired in 2011, while the underlying market conditions and outlook have continued to deteriorate.”

As a result of the closure of the Brazil manufacturing operation, the Company recorded a total of approximately $16.9 million of special charges, including $6.4 million of restructuring-related inventory charges, in the third quarter.

“Our top priority remains laying the foundation for long-term, above-market growth. We are improving delivery and quality while investing in sales, new product development and engineering. Going forward, we continue to focus on creating long-term value for shareholders by driving growth, expanding margins, generating strong free cash flow, and effectively deploying capital,” concluded Buckhout.

Fourth-Quarter 2015 Guidance

For the fourth quarter of 2015, the Company will provide its guidance during the conference call later today.

 

Selected Consolidated Results

($ millions except EPS)         Q3 2015       Q3 20142   Change
Revenue         $ 159.3           $ 203.8           (22 )%
GAAP Operating (Loss) Income         $ (3.5 )         $ 19.9           NM  
Adjusted Operating Income1         $ 16.2           $ 23.2           (30 )%
Adjusted Operating Margin1           10.1 %           11.4 %         (130) bps
GAAP (Loss) Earnings Per Share (Diluted)         $ (0.49 )         $ 0.83           NM  
Adjusted Earnings Per Share (Diluted)1         $ 0.64           $ 0.95           (33 )%
Free Cash Flow         $ 2.2           $ 14.0           (84 )%
Orders         $ 128.5           $ 242.3           (47 )%
 

Segment Results

($ millions except EPS)         Q3 2015       Q3 20142   Change
Energy                                  
Revenue         $ 122.9           $ 157.7           (22 )%
Adjusted Operating Margin1           15.4 %           16.9 %         (150) bps
Orders         $ 94.2           $ 197.7           (52 )%
                                   
Aerospace & Defense                                  
Revenue         $ 36.4           $ 46.2           (21 )%
Adjusted Operating Margin1           9.1 %           5.0 %         410 bps
Orders         $ 34.3           $ 44.6           (23 )%
 
1.  

Consolidated and Segment Results for Q3 2015 exclude special, restructuring and impairment charges totaling $19.7 million including (i) $16.9 million related to the closure of the Brazil manufacturing operations including restructuring-related inventory charge of $6.4 million; (ii) $2.5 million for Schroedahl intangible amortization expense; and (iii) restructuring costs of $0.4 million. Q3 2014 results exclude special charges of $0.5 million and restructuring-related inventory charges of $2.9 million.

2.  

Q3 2014 amounts have not been adjusted for divestitures or foreign currency impacts.

 

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, November 9, 2015, at 9:00 a.m. ET. To listen to the conference call and view the accompanying presentation slides, visit “Webcasts & Presentations” in the “Investors” portion of the CIRCOR website. The call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. The webcast will be archived for one year on the Company’s website.

Use of Non-GAAP Financial Measures

Adjusted net income, adjusted earnings per share (diluted), adjusted operating margin, and free cash flow are non-GAAP financial measures and are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States. CIRCOR believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which are, in some cases, beyond the control of CIRCOR. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, those relating to CIRCOR’s future performance, including the realization of cost reductions from restructuring activities. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND SUBSEQUENT REPORTS ON FORMS 10-Q AND 10-Q/A, WHICH CAN BE ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About CIRCOR International, Inc.

CIRCOR International, Inc. designs, manufactures and markets highly engineered products and sub-systems for markets including oil & gas, power generation and aerospace & defense. CIRCOR has a diversified product portfolio with recognized, market-leading brands that fulfill its customers’ unique application needs. The Company’s strategy is to grow organically and through complementary acquisitions; simplify CIRCOR’s operations; achieve world class operational excellence; and attract and retain top industry talent. For more information, visit the Company’s investor relations website at http://investors.circor.com.

 
CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(in thousands, except per share data)

UNAUDITED

          Three Months Ended     Nine Months Ended
         

October 4,

2015

   

September 28,

2014

   

October 4,

2015

   

September 28,

2014

Net revenues         $ 159,258       $ 203,818       $ 492,023       $ 622,888  
Cost of revenues         113,865       141,601       343,187       436,333  
GROSS PROFIT         45,393       62,217       148,836       186,555  
Selling, general and administrative expenses         38,143       41,873       119,344       129,370  
Impairment charges         2,502             2,502        
Special charges, net         8,277       478       13,098       578  
OPERATING (LOSS) INCOME         (3,529 )     19,866       13,892       56,607  
Other expense (income):                            
Interest expense, net         828       436       2,274       2,245  
Other (income) expense, net         (587 )     419       (1,197 )     (434 )
TOTAL OTHER EXPENSE, NET         241       855       1,077       1,811  
(LOSS) INCOME BEFORE INCOME TAXES         (3,770 )     19,012       12,816       54,796  
Provision for income taxes         4,308       4,337       10,109       13,565  
NET (LOSS) INCOME         $ (8,078 )     $ 14,675       $ 2,707       $ 41,231  
(Loss) Earnings per common share:                            
Basic         $ (0.49 )     $ 0.83       $ 0.16       $ 2.34  
Diluted         $ (0.49 )     $ 0.83       $ 0.16       $ 2.32  
Weighted average number of common shares outstanding:                            
Basic         16,485       17,675       16,989       17,654  
Diluted         16,485       17,779       17,029       17,763  
Dividends paid per common share         $ 0.0375       $ 0.0375       $ 0.1125       $ 0.1125  
 
 
CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)

          Nine Months Ended
         

October 4,

2015

     

September 28,

2014

OPERATING ACTIVITIES                  
Net income         $ 2,707         $ 41,231  
Adjustments to reconcile net income to net cash (used in) provided by operating activities:                  
Depreciation         10,676         12,163  
Amortization         6,742         2,367  
Bad debt         2,832         948  
Compensation expense of share-based plans         5,811         5,956  
Tax effect of share-based plan compensation         (259 )       (744 )
Loss (gain) on sale of property, plant and equipment         478         (133 )
Impairment charge         2,502          
Gain on sale of business         (1,044 )        
Changes in operating assets and liabilities, net of effects of acquisition and disposition                  
Trade accounts receivable         8,118         (31,890 )
Inventories         (17,452 )       (159 )
Prepaid expenses and other assets         (2,801 )       (121 )
Accounts payable, accrued expenses and other liabilities         (21,669 )       14,953  

Net cash (used in) provided by operating activities

        (3,359 )       44,571  
INVESTING ACTIVITIES                  
Purchases of property, plant and equipment         (9,604 )       (8,900 )
Proceeds from the sale of property, plant and equipment         1,200         761  
Proceeds from the sale of affiliate         2,759         177  
Business acquisition, net of cash acquired         (79,983 )        
Net cash used in investing activities         (85,628 )       (7,962 )
FINANCING ACTIVITIES                  
Proceeds from long-term debt         241,619         109,104  
Payments of long-term debt         (141,830 )       (125,140 )
Debt issuance costs                 (920 )
Dividends paid         (1,937 )       (2,011 )
Proceeds from the exercise of stock options         259         420  
Tax effect of share-based plan compensation         259         744  
Purchases of common stock         (69,517 )        
Net cash provided by (used in) financing activities         28,853         (17,803 )
Effect of exchange rate changes on cash and cash equivalents        

(7,416

)       (6,406 )
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS         (67,550 )       12,400  
Cash and cash equivalents at beginning of year         121,372         102,180  
CASH AND CASH EQUIVALENTS AT END OF PERIOD         $ 53,822         $ 114,580  
 
 
CIRCOR INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

         

October 4,

2015

     

December 31,

2014

ASSETS                  
CURRENT ASSETS:                  
Cash and cash equivalents         $ 53,822         $ 121,372  
Trade accounts receivable, less allowance for doubtful accounts of $9,342 and $9,536, respectively         143,601         156,738  
Inventories         198,560         183,434  
Prepaid expenses and other current assets         15,984         21,626  
Deferred income taxes         22,114         22,861  
Total Current Assets         434,081         506,031  
PROPERTY, PLANT AND EQUIPMENT, NET         88,242         96,212  
OTHER ASSETS:                  
Goodwill         121,357         72,430  
Intangibles, net         53,248         26,887  
Deferred income taxes         14,585         19,048  
Other assets         2,848         4,114  
TOTAL ASSETS         $ 714,361         $ 724,722  
LIABILITIES AND SHAREHOLDERS’ EQUITY                  
CURRENT LIABILITIES:                  
Accounts payable         $ 66,764         $ 87,112  
Accrued expenses and other current liabilities         65,097         65,223  
Accrued compensation and benefits         18,586         24,728  
Notes payable and current portion of long-term debt         5,668         8,423  
Total Current Liabilities         156,115         185,486  
LONG-TERM DEBT, NET OF CURRENT PORTION         105,431         5,261  
DEFERRED INCOME TAXES         16,490         7,771  
OTHER NON-CURRENT LIABILITIES         28,346         32,111  
SHAREHOLDERS’ EQUITY:                  
Common stock         177         177  
Additional paid-in capital         283,213         277,227  
Retained earnings         251,409         250,635  
Common treasury stock         (69,517 )        
Accumulated other comprehensive loss, net of taxes         (57,303 )       (33,946 )
Total Shareholders’ Equity         407,979         494,093  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY         $ 714,361         $ 724,721  
 
 
CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in millions)

UNAUDITED

          Three Months Ended       Nine Months Ended
         

October 4,

2015

     

September 28,

2014

     

October 4,

2015

     

September 28,

2014

ORDERS (1)(3)                                  
Energy         $ 94.2         $ 187.3         $ 348.7         $ 483.4
Aerospace & Defense         34.3         41.5         103.9         118.9
Total orders         $ 128.5         $ 228.8         $ 452.6         $ 602.3
                                   
BACKLOG (2)(3)        

October 4,

2015

     

September 28,

2014

               
Energy (4)         $ 210.5         $ 304.5                  
Aerospace & Defense (5)         94.1         125.8                  
Total backlog         $ 304.6         $ 430.3                  

 

Note 1:   Orders do not include the foreign exchange impact due to the re-measurement of customer order backlog amounts denominated in foreign currencies.
Note 2:   Backlog includes unshipped customer orders.
Note 3:   Three and nine months ended September 28, 2014 orders and backlog amounts exclude business divestitures in both the Energy and Aerospace & Defense segments.
Note 4:   Energy backlog was reduced by $10.0 million due to certain customer order cancellations during the fourth quarter of 2014 and third quarter of 2015. These orders were initially recorded in prior years.
Note 5:   Aerospace & Defense reduced backlog in the fourth quarter of 2014 by $13.5 million associated with a business divestiture and change in policy.
 
 
CIRCOR INTERNATIONAL, INC.

SUMMARY REPORT BY SEGMENT

(in thousands, except percentages)

UNAUDITED

                 
          2014     2015
          1ST QTR     2ND QTR     3RD QTR     4TH QTR     TOTAL     1ST QTR     2ND QTR     3RD QTR     TOTAL
NET REVENUES                                                          
Energy         $ 162,587       $ 160,580       $ 157,658       $ 172,432       $ 653,257       $ 127,586       $ 127,230       $ 122,905       $ 377,721  
Aerospace & Defense         48,599       47,304       46,160       46,126       188,189       38,274       39,676       36,353       114,303  
Total         $ 211,186       $ 207,884       $ 203,818       $ 218,558       $ 841,446       $ 165,860       $ 166,906       $ 159,258       $ 492,023  
ADJUSTED OPERATING MARGIN                                                          
Energy         13.8 %     14.6 %     16.9 %     14.3 %     14.9 %     13.2 %     11.4 %     15.4 %     13.3 %
Aerospace & Defense         9.1 %     7.1 %     5.0 %     5.3 %     6.6 %     8.0 %     8.8 %     9.1 %     8.6 %
Segment operating margin         12.7 %     12.9 %     14.2 %     12.4 %     13.0 %     12.0 %     10.8 %     14.0 %     12.2 %
Corporate expenses         (3.4 )%     (2.2 )%     (2.8 )%     (2.7 )%     (2.8 )%     (3.6 )%     (3.3 )%     (3.8 )%     (3.6 )%
Adjusted operating margin         9.4 %     10.7 %     11.4 %     9.6 %     10.2 %     8.3 %     7.5 %     10.1 %     8.6 %
Restructuring related inventory charges         %     2.5 %     1.4 %     %     0.9 %     %     1.2 %     4.0 %     1.7 %
Impairment charges         %     %     %     0.3 %     0.1 %     %     %     1.6 %     0.5 %
Special restructuring charges         0.4 %     0.6 %     0.2 %     1.2 %     0.6 %     0.9 %     1.9 %     0.2 %     1.0 %
Special acquisition amortization         %     %     %     %     %     %     1.3 %     1.6 %     0.9 %
Special other charges, net of recoveries         (0.9 )%     %     %     4.3 %     0.9 %     %     0.1 %     5.0 %     1.6 %
Total GAAP operating margin         9.9 %     7.6 %     9.7 %     3.7 %     7.7 %     7.4 %     3.0 %     (2.2 )%     2.8 %
 
 
                 
          2014     2015
          1ST QTR     2ND QTR     3RD QTR     4TH QTR     TOTAL     1ST QTR     2ND QTR     3RD QTR     TOTAL
ADJUSTED OPERATING INCOME                                                          
Energy         $ 22,462       $ 23,502       $ 26,577       $ 24,575       $ 97,117       $ 16,831       $ 14,499       $ 18,932       $ 50,262  
Aerospace & Defense         4,426       3,362       2,295       2,425       12,508       3,045       3,494       3,298       9,837  
Segment operating income         26,888       26,864       28,872       27,000       109,625       19,876       17,993       22,230       60,099  
Corporate expenses         (7,137 )     (4,634 )     (5,678 )     (5,965 )     (23,415 )     (6,034 )     (5,477 )     (6,078 )     (17,589 )
Adjusted operating income         19,750       22,231       23,194       21,035       86,210       13,842       12,516       16,152       42,510  
Restructuring related inventory charges               5,139       2,850             7,989             2,005       6,412       8,417  
Impairment charges                           726       726                   2,502       2,502  
Special restructuring charges         786       1,257       478       2,725       5,246       1,512       3,127       342       4,981  
Special acquisition amortization                                             2,110       2,490       4,600  
Special other charges, net of recoveries         (1,943 )                 9,434       7,491       (1 )     183       7,935       8,117  
Total GAAP operating income (loss)         20,907       15,835       19,866       8,150       64,757       12,331       5,090       (3,529 )     13,892  
INTEREST EXPENSE, NET         (918 )     (891 )     (436 )     (407 )     (2,652 )     (640 )     (805 )     (828 )     (2,274 )
OTHER INCOME (EXPENSE), NET         468       384       (419 )     722       1,156       506       104       587       1,197  
PRETAX INCOME (LOSS)         20,457       15,328       19,012       8,465       63,261       12,197       4,389       (3,770 )     12,816  
(PROVISION FOR) BENEFIT FROM INCOME TAXES         (5,825 )     (3,402 )     (4,337 )     690       (12,875 )     (3,284 )     (2,517 )     (4,308 )     (10,109 )
EFFECTIVE TAX RATE         28.5 %     22.2 %     22.8 %     (8.2 )%     20.4 %     26.9 %     57.3 %     (114.3 )%     78.9 %
NET INCOME (LOSS)         $ 14,632       $ 11,926       $ 14,675       $ 9,155       $ 50,386       $ 8,913       $ 1,872       $ (8,078 )     $ 2,707  
Weighted Average Common Shares Outstanding (Diluted)         17,741       17,767       17,779       17,782       17,768       17,712       16,900       16,485       17,034  
EARNINGS (LOSS) PER COMMON SHARE (Diluted)         $ 0.82       $ 0.67       $ 0.83       $ 0.51       $ 2.84       $ 0.50       $ 0.11       $ (0.49 )     $ 0.16  
ADJUSTED EBITDA         $ 25,073       $ 27,536       $ 27,530       $ 26,789       $ 106,927       $ 18,580       $ 19,075       $ 23,582       $ 61,237  
ADJUSTED EBITDA AS A % OF SALES         11.9 %     13.2 %     13.5 %     12.3 %     12.7 %     11.2 %     11.4 %     14.8 %     12.4 %
CAPITAL EXPENDITURES         $ 2,670       $ 2,933       $ 3,297       $ 3,910       $ 12,810       $ 1,983       $ 3,584       $ 2,837       $ 8,404  
 
 
CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands, except percentages)

UNAUDITED

          2014     2015
          1ST QTR     2ND QTR     3RD QTR     4TH QTR     TOTAL     1ST QTR     2ND QTR     3RD QTR     TOTAL
FREE CASH FLOW AS % OF NET INCOME         98 %     62 %     96 %     243 %     115 %     (207 )%     239 %     (27 )%     (435 )%
FREE CASH FLOW         $ 14,387       $ 7,365       $ 14,015       $ 22,249       $ 58,016       $ (18,415 )     $ 4,483       $ 2,169       $ (11,763 )
ADD:                                                          
Capital Expenditures, net of sale proceeds         2,670       2,933       3,297       3,910       12,810       1,983       3,584       2,837       8,404  
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES         $ 17,057       $ 10,298       $ 17,312       $ 26,159       $ 70,826       $ (16,432 )     $ 8,067       $ 5,006       $ (3,359 )
(CASH) NET DEBT         $ (66,056 )     $ (72,982 )     $ (80,829 )     $ (107,688 )     $ (107,688 )     $ (66,337 )     $ 59,051       $ 57,277       $ 57,277  
ADD:                                                          
Cash & Cash Equivalents         122,189       116,421       114,671       121,372       121,372       103,883       55,027       53,822       53,822  
TOTAL DEBT         $ 56,133       $ 43,439       $ 33,842       $ 13,684       $ 13,684       $ 37,546       $ 114,078       $ 111,099       $ 111,099  
TOTAL SHAREHOLDERS' EQUITY         $ 492,601       $ 507,363       $ 508,035       $ 494,093       $ 494,093       $ 462,384       $ 421,070       $ 407,979       $ 407,979  
DEBT AS % OF EQUITY         11 %     9 %     7 %     3 %     3 %     8 %     27 %     27 %     27 %
                 
          2014     2015
          1ST QTR     2ND QTR     3RD QTR     4TH QTR     TOTAL     1ST QTR     2ND QTR     3RD QTR     TOTAL
ADJUSTED OPERATING INCOME (LOSS)         $ 19,750       $ 22,230       $ 23,194       $ 21,035       $ 86,210       $ 13,842       $ 12,516       $ 16,152       $ 42,510  
LESS:                                                          
Restructuring related inventory charges               5,139       2,850             7,989             2,005       6,412       8,417  
Impairment charges                           726       726                   2,502       2,502  
Special restructuring charges         786       1,257       478       2,725       5,246       1,512       3,127       342       4,981  
Special acquisition amortization                                             2,110       2,490       4,600  
Special other charges, net of recoveries         (1,943 )                 9,434       7,491       (1 )     183       7,935       8,117  
OPERATING INCOME (LOSS)         $ 20,907       $ 15,834       $ 19,866       $ 8,150       $ 64,757       $ 12,331       $ 5,090       $ (3,529 )     $ 13,892  
                                                           
ADJUSTED NET INCOME         $ 13,916       $ 16,090       $ 16,827       $ 19,188       $ 66,019       $ 9,845       $ 6,848       $ 10,635       $ 27,328  
LESS:                                                          
Restructuring related inventory charges, net of tax               3,316       1,839             5,155             1,339       6,412       7,751  
Impairment charges, net of tax                           726       726                   2,502       2,502  
Special restructuring charges, net of tax         508       848       313       1,763       3,432       1,079       2,175       304       3,558  
Special acquisition amortization, net of tax                                             1,409       1,587       2,996  
Special other charges, net of recoveries, net of tax         (1,224 )                 7,544       6,320       (147 )     53       7,908       7,814  
NET INCOME (LOSS)         $ 14,632       $ 11,926       $ 14,675       $ 9,155       $ 50,386       $ 8,913       $ 1,872       $ (8,078 )     $ 2,707  
                                                           
ADJUSTED EARNINGS PER SHARE (Diluted)         $ 0.78       $ 0.91       $ 0.95       $ 1.08       $ 3.72       $ 0.56       $ 0.41       $ 0.64       $ 1.61  
LESS:                                                          
Restructuring related inventory charges, net of tax               0.19       0.10             0.29             0.08       0.39       0.46  
Impairment charges, net of tax                           0.04       0.04                   0.15       0.15  
Special restructuring charges, net of tax         0.03       0.05       0.02       0.10       0.20       0.06       0.13       0.02       0.20  
Special acquisition amortization, net of tax                                             0.08       0.10       0.17  
Special other charges, net of recoveries, net of tax         (0.07 )                 0.42       0.35                   0.47       0.47  
EARNINGS (LOSS) PER COMMON SHARE (Diluted)         $ 0.82       $ 0.67       $ 0.83       $ 0.51       $ 2.84       $ 0.50       $ 0.11       $ (0.49 )     $ 0.16  
                                                           
                 
          2014     2015
          1ST QTR     2ND QTR     3RD QTR     4TH QTR     TOTAL     1ST QTR     2ND QTR     3RD QTR     TOTAL
EBITDA         $ 26,230       $ 21,140       $ 24,202       $ 13,904       $ 85,475       $ 17,068       $ 11,650       $ 3,789       $ 32,507  
LESS:                                                          
Interest expense, net         (918 )     (891 )     (436 )     (407 )     (2,652 )     (640 )     (805 )     (828 )     (2,273 )
Depreciation         (4,069 )     (4,116 )     (3,978 )     (4,283 )     (16,446 )     (3,521 )     (3,629 )     (3,526 )     (10,676 )
Amortization         (786 )     (805 )     (776 )     (749 )     (3,116 )     (710 )     (2,827 )     (3,205 )     (6,742 )
(Provision for) benefit from income taxes         (5,825 )     (3,402 )     (4,337 )     690       (12,875 )     (3,284 )     (2,517 )     (4,308 )     (10,109 )
NET INCOME (LOSS)         $ 14,632       $ 11,926       $ 14,675       $ 9,155       $ 50,386       $ 8,913       $ 1,872       $ (8,078 )     $ 2,707  
ADJUSTED EBITDA         $ 25,073       $ 27,536       $ 27,530       $ 26,789       $ 106,927       $ 18,580       $ 19,075       $ 23,470       $ 61,125  
LESS:                                                          
Restructuring related inventory charges               (5,139 )     (2,850 )           (7,989 )           (2,005 )     (6,412 )     (8,417 )
Impairment charges                           (726 )     (726 )                 (2,502 )     (2,502 )
Special restructuring charges         (786 )     (1,257 )     (478 )     (2,725 )     (5,246 )     (1,512 )     (3,127 )     (342 )     (4,981 )
Special acquisition amortization                                             (2,110 )     (2,490 )     (4,600 )
Special other charges, net of recoveries         1,943                   (9,434 )     (7,491 )     1       (183 )     (7,935 )     (8,117 )
Interest expense, net         (918 )     (891 )     (436 )     (407 )     (2,652 )     (641 )     (805 )     (828 )     (2,274 )
Depreciation         (4,069 )     (4,116 )     (3,978 )     (4,283 )     (16,446 )     (3,521 )     (3,629 )     (3,526 )     (10,676 )
Amortization         (786 )     (805 )     (776 )     (749 )     (3,116 )     (710 )     (2,827 )     (3,205 )     (6,742 )
(Provision for) benefit from income taxes         (5,825 )     (3,402 )     (4,337 )     690       (12,875 )     (3,284 )     (2,517 )     (4,308 )     (10,109 )
NET INCOME (LOSS)         $ 14,632       $ 11,926       $ 14,675       $ 9,155       $ 50,386       $ 8,913       $ 1,872       $ (8,078 )     $ 2,707  
 
 
CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands, except per share data)

UNAUDITED

   
          2014
          1ST QTR     2ND QTR     3RD QTR     4TH QTR     TOTAL
NET REVENUES EXCLUDING DIVESTITURES         $ 198,204       $ 194,349       $ 189,705       $ 207,970       $ 790,228
ADD:                                  
Energy divestiture         10,554       10,037       10,667       8,465       39,723
Aerospace & Defense divestiture         2,428       3,498       3,446       2,123       11,495
NET REVENUES         $ 211,186       $ 207,884       $ 203,818       $ 218,558       $ 841,446
ADJUSTED EARNINGS PER SHARE EXCLUDING DIVESTITURES (Diluted)         0.79       0.88       0.89       1.05       3.61
ADD:                                  
Divestitures         (0.01 )     0.03       0.06       0.03       0.11
ADJUSTED EARNINGS PER SHARE (Diluted)         $ 0.78       $ 0.91       $ 0.95       $ 1.08       $ 3.72
   

 

Source: CIRCOR International, Inc.

CIRCOR International
Rajeev Bhalla, 781-270-1200
Executive Vice President & Chief Financial Officer