UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 23, 2003
CIRCOR INTERNATIONAL, INC.
(Exact name of registrant as specified in charter)
| DELAWARE |
001-14962 |
04-3477276 | ||
| (State or other jurisdiction of incorporation) |
(Commission file number) | (IRS employer identification no.) |
| C/O CIRCOR, INC. |
| 35 CORPORATE DRIVE, SUITE 290 |
| BURLINGTON, MASSACHUSETTS 01803-4244 |
| (Address of principal executive offices) (Zip Code) |
| (781) 270-1200 |
| (Registrant’s telephone number, including area code) |
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
| (a) | Not Applicable |
| (b) | Not Applicable |
| (c) | Exhibit 99.1 Press release dated October 23, 2003. |
Item 9. Regulation FD Disclosure Results of Operations and Financial Condition
Pursuant to Item 12, “Results of Operations and Financial Condition”, the Registrant is furnishing as Exhibit 99.1 hereto the press release issued on October 23, 2003 relative to the Registrant’s financial performance and results for the third quarter of fiscal year 2003.
In the press release and accompanying supplemental information, the Company uses the following non-GAAP financial measures: free cash flow, EBIT and EBITDA. Management of the Company believes that free cash flow (defined as net cash flow from operating activities, less capital expenditures and dividends paid) is an important measure of its liquidity as well as its ability to service long-term debt, fund future growth and to provide a return to shareholders. EBIT (defined as operating income plus other (income) expense, net) and EBITDA (defined as operating income plus other (income) expense, net plus depreciation plus amortization) is provided because management believes these measurements are commonly used by investors and financial institutions to analyze and compare companies on the basis of operating performance. Free cash flow, EBIT and EBITDA, are not measurements for financial performance under GAAP and should not be construed as a substitute for operating income, net income or cash flows. Free cash flow, EBIT and EBITDA, as we have calculated here, may not necessarily be comparable to similarly titled measures used by other companies. A reconciliation of free cash flow, EBIT and EBITDA, to the most directly comparable GAAP financial measure is provided in the supplemental information table titled “Reconciliation of Key Performance Measures to Commonly Used Generally Accepted Accounting Principle Terms.”
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: October 23, 2003 |
CIRCOR INTERNATIONAL, INC. | |||||||
| /s/ KENNETH W. SMITH | ||||||||
| By: Kenneth W. Smith Vice President, Chief Financial Officer and Treasurer | ||||||||
3
| Exhibit No. |
Description | |
| 99.1 | Press release dated October 23, 2003 | |
4
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Kenneth Smith
Chief Financial Officer
CIRCOR International, Inc.
781-270-1200
CIRCOR Reports Third Quarter Earnings of $0.28 Per Share
| · | Revenues increased 4.3% while earnings per share climbed 16.7% on improved Petrochemical Segment performance |
| · | First nine months free cash flow reached 12.3% of revenues or 2.6 times net income |
| · | Orders increased 9.4% and total backlog rose 16.6% compared to last year excluding acquisitions |
BURLINGTON, MA, October 23, 2003
CIRCOR International, Inc. (NYSE:CIR), a leading provider of valves and fluid control products for the instrumentation, fluid regulation and petrochemical markets, announced today results for the third quarter ended September 30, 2003. Net income for the third quarter of 2003 was $4.4 million, or $0.28 per diluted share, compared to $3.8 million, or $0.24 per diluted share, for the 2002 third quarter, an increase of 16.7% in earnings per share. Revenues for the 2003 third quarter were $86.7 million, an increase of 4.3% from $83.1 million for the third quarter of 2002.
For the nine months ended September 30, 2003, net income was $12.6 million, or $0.81 per diluted share, including special charges of $0.3 million pre-tax, or $0.01 per diluted share. Net income for the nine months ended September 30, 2002, totaled $11.3 million, or $0.73 per diluted share, which included special charges of $0.7 million pre-tax, or $0.03 per diluted share. Revenues for the nine months ended September 30, 2003, were $263.0 million, an increase of 7.3% from $245.1 million for the first nine months of 2002.
CIRCOR’s Chairman and Chief Executive Officer, David A. Bloss, Sr., commented on the Company’s financial results and market trends stating, “General market conditions improved slightly during the third quarter. Although end-user
demand from most markets we serve remains weak, we are beginning to see some encouraging signs of improved economic conditions for many of our businesses. While orders were sequentially lower by 9.8% during the historically slow third quarter for steam-related applications and large international oil and gas project awards, we posted modest year-over-year increases in most business units. Our petrochemical, aerospace, military, medical/pharmaceutical and industrial valve businesses contributed to overall orders being up 9.4%, while total backlog increased 16.6% compared to the third quarter of last year, excluding the effect of acquisitions although assisted by the effect of year-over-year foreign exchange rate changes.”
Bloss further stated, “Meanwhile, our earnings and cash flow for the quarter remained strong despite difficult market conditions, including extremely competitive product pricing and low market demand, and our internal drive to reduce inventory levels, a process which utilizes our facilities below optimum levels. Despite these factors, we continued to control our costs and post higher profits and earnings per share for the quarter compared to last year while generating $7.2 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) during the quarter. For the first nine months of 2003, $32.2 million in free cash flow was generated, which equaled 2.6 times net income, or 12.3% of net revenues. At the end of the first nine months of 2003, net debt (debt less cash, cash equivalents, and marketable securities) had decreased to nearly zero.”
Bloss added, “Our management teams continue to identify additional cost reduction and consolidation opportunities. During the third quarter we decided to consolidate the Tomco quick disconnect product line manufacturing facility located in Painesville, Ohio, into our Hoke instrumentation products plant in Spartanburg, South Carolina.” Tomco was acquired by CIRCOR in October 2002 and is part of CIRCOR’s Instrumentation and Thermal Fluid Controls segment. Closing of the Tomco plant is expected to be completed in the fourth quarter 2003 at a total estimated cost of $1.0 million (before proceeds from sale of the property) with annual pre-tax savings expected of approximately $0.9 million beginning in 2004. Pre-tax special charges related to this move of $0.3 million were recorded during the third quarter with an additional $0.7 million of special charges expected to be incurred in the fourth quarter of 2003.
CIRCOR’s Petrochemical Product segment revenues increased 6.2% to $39.5 million from $37.2 million in the third quarter of last year and were up 10.5% on a year-to-date basis compared to the first nine months of 2002. Operating margins increased to 10.9% in the third quarter compared to 7.3% in the third quarter of last
year. Operating margins also improved sequentially from 8.6% reported in the second quarter of 2003 due to ongoing cost reduction efforts and an improved mix of higher margin product sales. Orders for the quarter were up 13.8% while backlog increased 52.2% compared to last year as oil and gas markets improved in North America and international project activity remained healthy. Compared to the second quarter 2003, orders decreased 18.8% as traditionally slower third quarter activity for large international oil and gas project awards offset a modest order increase from North American petrochemical customers.
CIRCOR’s Instrumentation and Thermal Fluid Controls segment revenues were up 2.7% to $47.1 million for the third quarter compared to $45.9 million for the same period last year and up 5.0% on a year-to-date basis compared to the first nine months of 2002. These increases were primarily the result of acquisitions made in the fourth quarter of 2002 and stronger foreign currencies translated into U.S. dollars. Operating margins for this segment decreased to 11.4% in the third quarter compared to 14.9% last year as a result of reduced production levels due to market conditions, management efforts to further reduce inventory levels, and costs associated with the consolidation of the Tomco facility. Orders for this segment were up 13.1% compared to the third quarter of 2002 due to acquisitions, foreign exchange and modest increases in industrial instrumentation and military aerospace product demand. Orders declined slightly on a sequential basis while backlog dropped 6.2% versus last year but rose 4.3% sequentially.
The Company is providing guidance for its fourth quarter results indicating that it expects earnings, excluding any special charges, to be in the range of $0.31 to $0.35 per share.
CIRCOR International has scheduled a conference call to review its results for the quarter on Friday, October 24, 2003, at 9:00 a.m. ET. Interested parties may access the call by dialing 913-981-5518. A replay of the call will be available from noon ET on October 24, 2003, through midnight on Tuesday, October 28, 2003. To access the replay, interested parties should dial 888-203-1112, and enter confirmation code #285135 when prompted. The presentation slides that will be discussed in the conference call are expected to be available on Thursday, October 23, 2003, by 6:00 p.m. ET. The presentation slides may be downloaded from the Quarterly Earnings page of the Investors section on the CIRCOR Website: http://www.circor.com. An audio recording of the conference call also is expected to be posted on the Company’s website by October 28, 2003.
CIRCOR International, Inc. is a leading provider of valves and fluid control products that allow customers around the world to use fluids safely and efficiently
in the instrumentation, thermal fluid regulation and petrochemical markets. CIRCOR’s executive headquarters are located at 35 Corporate Drive, Burlington, MA 01803.
This press release contains certain statements that are “forward-looking statements” “as that term is defined under the Private Securities Litigation Reform Act of 1995 (the “Act”) and releases issued by the Securities and Exchange Commission (SEC). The words “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. We believe that it is important to communicate our future expectations to our stockholders, and we, therefore, make forward-looking statements in reliance upon the safe harbor provisions of the Act. However, there may be events in the future that we are not able to accurately predict or control, and our actual results, performance or achievements may differ materially from the expectations we describe in our forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the cyclicality and highly competitive nature of some of our end markets, changes in the price of and demand for oil and gas in both domestic and international markets, variability of raw material and component pricing, fluctuations in foreign currency exchange rates, and our ability to continue operating our manufacturing facilities at efficient levels and to successfully implement our acquisition strategy. We advise you to read further about these and other risk factors set forth under the caption “Certain Risk Factors That May Affect Future Results” in our SEC filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
UNAUDITED
| September 30, 2003 |
December 31, 2002 | |||||
| ASSETS | ||||||
| Current Assets: |
||||||
| Cash and cash equivalents |
$ | 74,847 | $ | 38,382 | ||
| Marketable securities |
— | 4,064 | ||||
| Trade accounts receivable, less allowance for doubtful accounts of $2,176 and |
62,286 | 56,130 | ||||
| Inventories |
97,770 | 110,287 | ||||
| Prepaid expenses and other current assets |
5,354 | 4,262 | ||||
| Deferred income taxes |
6,054 | 5,884 | ||||
| Total Current Assets |
246,311 | 219,009 | ||||
| Property, Plant and Equipment, net |
64,102 | 64,365 | ||||
| Other Assets: |
||||||
| Goodwill |
101,703 | 100,419 | ||||
| Other assets |
6,015 | 6,941 | ||||
| Total Assets |
$ | 418,131 | $ | 390,734 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current Liabilities: |
||||||
| Accounts payable |
$ | 31,820 | $ | 26,769 | ||
| Accrued expenses and other current liabilities |
24,455 | 19,967 | ||||
| Income taxes payable |
4,449 | 2,801 | ||||
| Notes payable and current portion of long-term debt |
16,768 | 18,596 | ||||
| Total Current Liabilities |
77,492 | 68,133 | ||||
| Long-term Debt, net of current portion |
58,333 | 59,394 | ||||
| Deferred Income Taxes |
4,074 | 3,934 | ||||
| Other Noncurrent Liabilities |
10,399 | 10,605 | ||||
| Minority Interest |
4,582 | 5,009 | ||||
| Shareholders' Equity: |
||||||
| Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares issued and outstanding |
— | — | ||||
| Common stock, $.01 par value; 29,000,000 shares authorized; and 15,281,335 and 15,107,850 issued and outstanding, respectively |
153 | 151 | ||||
| Additional paid-in capital |
205,862 | 203,952 | ||||
| Retained earnings |
50,109 | 39,200 | ||||
| Accumulated other comprehensive income |
7,127 | 356 | ||||
| Total Shareholders' Equity |
263,251 | 243,659 | ||||
| Total Liabilities and Shareholders' Equity |
$ | 418,131 | $ | 390,734 | ||
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
UNAUDITED
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2003 |
2002 |
2003 |
2002 |
|||||||||||||
| Net revenues |
$ | 86,661 | $ | 83,092 | $ | 263,048 | $ | 245,095 | ||||||||
| Cost of revenues |
61,801 | 59,052 | 186,445 | 171,890 | ||||||||||||
| GROSS PROFIT |
24,860 | 24,040 | 76,603 | 73,205 | ||||||||||||
| Selling, general and administrative expenses |
16,788 | 16,361 | 53,545 | 49,882 | ||||||||||||
| Special charges |
271 | — | 271 | 745 | ||||||||||||
| OPERATING INCOME |
7,801 | 7,679 | 22,787 | 22,578 | ||||||||||||
| Other (income) expense: |
||||||||||||||||
| Interest income |
(192 | ) | (246 | ) | (495 | ) | (819 | ) | ||||||||
| Interest expense |
1,512 | 2,001 | 4,625 | 5,996 | ||||||||||||
| Other income, net |
(362 | ) | 34 | (1,054 | ) | (246 | ) | |||||||||
| Total other expense |
958 | 1,789 | 3,076 | 4,931 | ||||||||||||
| INCOME BEFORE INCOME TAXES |
6,843 | 5,890 | 19,711 | 17,647 | ||||||||||||
| Provision for income taxes |
2,464 | 2,120 | 7,096 | 6,353 | ||||||||||||
| NET INCOME |
$ | 4,379 | $ | 3,770 | $ | 12,615 | $ | 11,294 | ||||||||
| Earnings per common share: |
||||||||||||||||
| Basic |
$ | 0.29 | $ | 0.25 | $ | 0.83 | $ | 0.75 | ||||||||
| Diluted |
$ | 0.28 | $ | 0.24 | 0.81 | 0.73 | ||||||||||
| Weighted average common shares outstanding: |
||||||||||||||||
| Basic |
15,237 | 15,091 | 15,177 | 15,003 | ||||||||||||
| Diluted |
15,812 | 15,511 | 15,620 | 15,543 | ||||||||||||
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
| Nine Months Ended September 30, |
||||||||
| 2003 |
2002 |
|||||||
| OPERATING ACTIVITIES | ||||||||
| Net income |
$ | 12,615 | $ | 11,294 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||
| Depreciation |
7,511 | 7,869 | ||||||
| Amortization |
223 | 232 | ||||||
| Compensation expense of stock-based plans |
203 | 249 | ||||||
| Deferred income taxes (benefit) |
(3 | ) | 62 | |||||
| (Gain) loss on disposal of property, plant and equipment |
43 | 19 | ||||||
| Loss on write-off of property, plant and equipment |
30 | 325 | ||||||
| Gain on sale of marketable securities |
(64 | ) | — | |||||
| Changes in operating assets and liabilities, net of effects from business acquisitions: |
||||||||
| Trade accounts receivable |
(3,773 | ) | 5,270 | |||||
| Inventories |
15,758 | (9,574 | ) | |||||
| Prepaid expenses and other assets |
(192 | ) | (466 | ) | ||||
| Accounts payable, accrued expenses and other liabilities |
7,372 | 6,662 | ||||||
| Net cash provided by operating activities |
39,723 | 21,942 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Additions to property, plant and equipment |
(5,793 | ) | (3,164 | ) | ||||
| Proceeds from disposal of property, plant and equipment |
38 | 30 | ||||||
| Proceeds from the sale of marketable securities |
4,128 | — | ||||||
| Business acquisitions, net of cash acquired |
— | (2,328 | ) | |||||
| Purchase price adjustments on previous acquisitions |
— | 1,088 | ||||||
| Other |
(17 | ) | (56 | ) | ||||
| Net cash used in investing activities |
(1,644 | ) | (4,430 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Proceeds from long-term borrowings |
810 | 1,577 | ||||||
| Payments of long-term debt |
(3,924 | ) | (7,086 | ) | ||||
| Dividends paid |
(1,706 | ) | (1,688 | ) | ||||
| Proceeds from the exercise of stock options |
1,102 | 2,107 | ||||||
| Conversion of restricted stock units |
351 | 132 | ||||||
| Net cash used in financing activities |
(3,367 | ) | (4,958 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents |
1,753 | 133 | ||||||
| INCREASE IN CASH AND CASH EQUIVALENTS |
36,465 | 12,687 | ||||||
| Cash and cash equivalents at beginning of year |
38,382 | 57,010 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ | 74,847 | $ | 69,697 | ||||
CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in thousands)
UNAUDITED
| Three Months Ended September 30, |
Nine Months Ended June 30, | |||||||||||
| 2003 |
2002 |
2003 |
2002 | |||||||||
| ORDERS | ||||||||||||
| Instrumentation & Thermal Fluid Controls |
$ | 48,682 | $ | 43,033 | $ | 148,739 | $ | 139,652 | ||||
| Petrochemical |
35,139 | 30,881 | 121,836 | 108,950 | ||||||||
| Total orders |
$ | 83,821 | $ | 73,914 | $ | 270,575 | $ | 248,602 | ||||
| September 30, |
||||||||||||
| 2003 |
2002 |
|||||||||||
| BACKLOG | ||||||||||||
| Instrumentation & Thermal Fluid Controls |
$ | 37,524 | $ | 39,998 | ||||||||
| Petrochemical |
44,718 | 29,387 | ||||||||||
| Total backlog |
$ | 82,242 | $ | 69,385 | ||||||||
Note: Backlog includes all unshipped customer orders.
CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share)
UNAUDITED
| 2002 |
2003 |
|||||||||||||||||||||||||||||||||||
| 1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
YEAR |
1ST QTR |
2ND QTR |
3RD QTR |
9 MONTHS |
||||||||||||||||||||||||||||
| NET REVENUES | ||||||||||||||||||||||||||||||||||||
| Instrumentation & Thermal Fluid Controls |
$ | 46,417 | $ | 47,966 | $ | 45,886 | $ | 50,255 | $ | 190,524 | $ | 49,119 | $ | 50,963 | $ | 47,132 | $ | 147,214 | ||||||||||||||||||
| Petrochemical |
33,045 | 34,575 | 37,206 | 36,098 | 140,924 | 38,044 | 38,261 | 39,529 | 115,834 | |||||||||||||||||||||||||||
| Total |
79,462 | 82,541 | 83,092 | 86,353 | 331,448 | 87,163 | 89,224 | 86,661 | 263,048 | |||||||||||||||||||||||||||
| OPERATING MARGIN | ||||||||||||||||||||||||||||||||||||
| Instrumentation & Thermal Fluid Controls |
16.4 | % | 17.0 | % | 14.9 | % | 12.0 | % | 15.0 | % | 12.2 | % | 12.5 | % | 11.9 | % | 12.2 | % | ||||||||||||||||||
| Petrochemical |
6.9 | % | 4.5 | % | 7.3 | % | 10.2 | % | 7.3 | % | 7.6 | % | 8.6 | % | 10.9 | % | 9.1 | % | ||||||||||||||||||
| Segment operating margin |
12.4 | % | 11.7 | % | 11.5 | % | 11.2 | % | 11.7 | % | 10.2 | % | 10.8 | % | 11.5 | % | 10.8 | % | ||||||||||||||||||
| Corporate expenses |
-2.3 | % | -2.5 | % | -2.2 | % | -2.2 | % | -2.3 | % | -1.9 | % | -2.1 | % | -2.1 | % | -2.1 | % | ||||||||||||||||||
| Special charges |
-0.6 | % | -0.4 | % | — | — | -0.2 | % | — | — | -0.3 | % | -0.1 | % | ||||||||||||||||||||||
| Total operating margin |
9.6 | % | 8.8 | % | 9.2 | % | 9.0 | % | 9.2 | % | 8.2 | % | 8.7 | % | 9.0 | % | 8.7 | % | ||||||||||||||||||
| OPERATING INCOME | ||||||||||||||||||||||||||||||||||||
| Instrumentation & Thermal Fluid Controls |
7,607 | 8,138 | 6,845 | 6,024 | 28,614 | 5,982 | 6,359 | 5,622 | 17,963 | |||||||||||||||||||||||||||
| Petrochemical |
2,286 | 1,553 | 2,701 | 3,685 | 10,225 | 2,876 | 3,303 | 4,309 | 10,488 | |||||||||||||||||||||||||||
| Segment operating income |
9,893 | 9,691 | 9,546 | 9,709 | 38,839 | 8,858 | 9,662 | 9,931 | 28,451 | |||||||||||||||||||||||||||
| Corporate expenses |
(1,840 | ) | (2,100 | ) | (1,867 | ) | (1,913 | ) | (7,720 | ) | (1,674 | ) | (1,860 | ) | (1,859 | ) | (5,393 | ) | ||||||||||||||||||
| Special charges |
(453 | ) | (292 | ) | — | — | (745 | ) | — | — | (271 | ) | (271 | ) | ||||||||||||||||||||||
| Total operating income |
7,600 | 7,299 | 7,679 | 7,796 | 30,374 | 7,184 | 7,802 | 7,801 | 22,787 | |||||||||||||||||||||||||||
| INTEREST EXPENSE, NET |
(1,741 | ) | (1,681 | ) | (1,755 | ) | (1,544 | ) | (6,721 | ) | (1,461 | ) | (1,349 | ) | (1,320 | ) | (4,130 | ) | ||||||||||||||||||
| OTHER (EXPENSE) INCOME, NET |
(102 | ) | 382 | (34 | ) | 440 | 686 | 275 | 417 | 362 | 1,054 | |||||||||||||||||||||||||
| PRETAX INCOME |
5,757 | 6,000 | 5,890 | 6,692 | 24,339 | 5,998 | 6,870 | 6,843 | 19,711 | |||||||||||||||||||||||||||
| PROVISION FOR INCOME TAXES |
(2,072 | ) | (2,161 | ) | (2,120 | ) | (2,409 | ) | (8,762 | ) | (2,159 | ) | (2,473 | ) | (2,464 | ) | (7,096 | ) | ||||||||||||||||||
| EFFECTIVE TAX RATE |
36.0 | % | 36.0 | % | 36.0 | % | 36.0 | % | 36.0 | % | 36.0 | % | 36.0 | % | 36.0 | % | 36.0 | % | ||||||||||||||||||
| NET INCOME |
$ | 3,685 | $ | 3,839 | $ | 3,770 | $ | 4,283 | $ | 15,577 | $ | 3,839 | $ | 4,397 | $ | 4,379 | $ | 12,615 | ||||||||||||||||||
| Weighted Average Common Shares Outstanding (Diluted) |
15,541 | 15,732 | 15,511 | 15,462 | 15,610 | 15,533 | 15,634 | 15,812 | 15,620 | |||||||||||||||||||||||||||
| EARNINGS PER COMMON SHARE (Diluted) |
$ | 0.24 | $ | 0.24 | $ | 0.24 | $ | 0.28 | $ | 1.00 | $ | 0.25 | $ | 0.28 | $ | 0.28 | $ | 0.81 | ||||||||||||||||||
| EARNINGS PER COMMON SHARE (Diluted) excluding special charges |
$ | 0.26 | $ | 0.26 | $ | 0.24 | $ | 0.28 | $ | 1.03 | $ | 0.25 | $ | 0.28 | $ | 0.29 | $ | 0.82 | ||||||||||||||||||
| EBIT |
$ | 7,498 | $ | 7,681 | $ | 7,645 | $ | 8,236 | $ | 31,060 | $ | 7,459 | $ | 8,219 | $ | 8,163 | $ | 23,841 | ||||||||||||||||||
| Depreciation |
2,745 | 2,672 | 2,452 | 2,474 | 10,343 | 2,470 | 2,563 | 2,478 | 7,511 | |||||||||||||||||||||||||||
| Amortization of intangibles |
79 | 79 | 74 | 75 | 307 | 74 | 75 | 74 | 223 | |||||||||||||||||||||||||||
| EBITDA |
$ | 10,322 | $ | 10,432 | $ | 10,171 | $ | 10,785 | $ | 41,710 | $ | 10,003 | $ | 10,857 | $ | 10,715 | $ | 31,575 | ||||||||||||||||||
| EBITDA AS A PERCENT OF SALES |
13.0 | % | 12.6 | % | 12.2 | % | 12.5 | % | 12.6 | % | 11.5 | % | 12.2 | % | 12.4 | % | 12.0 | % | ||||||||||||||||||
| CAPITAL EXPENDITURES |
$ | 863 | $ | 1,081 | $ | 1,220 | $ | 1,254 | $ | 4,418 | $ | 795 | $ | 1,058 | $ | 3,940 | $ | 5,793 | ||||||||||||||||||
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands)
UNAUDITED
| 2002 |
2003 |
|||||||||||||||||||||||||||||||||||||
| 1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
YEAR |
1ST QTR |
2ND QTR |
3RD QTR |
9 MONTHS |
||||||||||||||||||||||||||||||
| FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES LESS DIVIDENDS PAID] |
$ | 7,091 | $ | 6,519 | $ | 3,480 | $ | 1,162 | $ | 18,252 | $ | 14,533 | $ | 10,508 | $ | 7,183 | $ | 32,224 | ||||||||||||||||||||
| ADD: |
Capital expenditures |
863 | 1,081 | 1,220 | 1,254 | 4,418 | 795 | 1,058 | 3,940 | 5,793 | ||||||||||||||||||||||||||||
| Dividends paid |
557 | 565 | 566 | 567 | 2,255 | 567 | 569 | 570 | 1,706 | |||||||||||||||||||||||||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
$ | 8,511 | $ | 8,165 | $ | 5,266 | $ | 2,983 | $ | 24,925 | $ | 15,895 | $ | 12,135 | $ | 11,693 | $ | 39,723 | ||||||||||||||||||||
| NET DEBT [TOTAL DEBT LESS CASH LESS CASH EQUIVALENTS LESS MARKETABLE SECURITIES] |
$ | 34,791 | $ | 26,853 | $ | 22,648 | $ | 35,543 | $ | 35,543 | $ | 20,209 | $ | 8,005 | $ | 254 | $ | 254 | ||||||||||||||||||||
| ADD: |
Cash and cash equivalents |
60,164 | 67,555 | 69,697 | 38,382 | 38,382 | 51,419 | 65,017 | 74,847 | 74,847 | ||||||||||||||||||||||||||||
| Marketable securities |
— | — | — | 4,064 | 4,064 | 4,072 | 1,464 | — | — | |||||||||||||||||||||||||||||
| TOTAL DEBT |
$ | 94,955 | $ | 94,408 | $ | 92,345 | $ | 77,990 | $ | 77,990 | $ | 75,700 | $ | 74,486 | $ | 75,101 | $ | 75,101 | ||||||||||||||||||||
| NET DEBT AS % OF NET CAPITALIZATION |
13.3 | % | 10.2 | % | 8.7 | % | 12.7 | % | 12.7 | % | 7.5 | % | 3.0 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||||
| NET DEBT [As defined above] |
$ | 34,791 | $ | 26,853 | $ | 22,648 | $ | 35,543 | $ | 35,543 | $ | 20,209 | $ | 8,005 | $ | 254 | $ | 254 | ||||||||||||||||||||
| ADD: |
Cash and cash equivalents |
60,164 | 67,555 | 69,697 | 38,382 | 38,382 | 51,419 | 65,017 | 74,847 | 74,847 | ||||||||||||||||||||||||||||
| Marketable securities |
— | — | — | 4,064 | 4,064 | 4,072 | 1,464 | — | — | |||||||||||||||||||||||||||||
| TOTAL DEBT |
$ | 94,955 | $ | 94,408 | $ | 92,345 | $ | 77,990 | $ | 77,990 | $ | 75,700 | $ | 74,486 | $ | 75,101 | $ | 75,101 | ||||||||||||||||||||
| NET CAPITALIZATION [TOTAL DEBT PLUS SHAREHOLDERS' EQUITY LESS CASH, LESS CASH EQUIVALENTS, LESS MARKETABLE SECURITIES] |
$ | 261,622 | $ | 262,783 | $ | 259,514 | $ | 279,202 | $ | 279,202 | $ | 270,090 | $ | 266,529 | $ | 263,505 | $ | 263,505 | ||||||||||||||||||||
| LESS: |
Debt |
(94,955 | ) | (94,408 | ) | (92,345 | ) | (77,990 | ) | (77,990 | ) | (75,700 | ) | (74,486 | ) | (75,101 | ) | (75,101 | ) | |||||||||||||||||||
| ADD: |
Cash and cash equivalents |
60,164 | 67,555 | 69,697 | 38,382 | 38,382 | 51,419 | 65,017 | 74,847 | 74,847 | ||||||||||||||||||||||||||||
| Marketable securities |
— | — | — | 4,064 | 4,064 | 4,072 | 1,464 | — | — | |||||||||||||||||||||||||||||
| TOTAL SHAREHOLDERS' EQUITY |
226,831 | 235,930 | 236,866 | 243,659 | 243,659 | 249,881 | 258,524 | 263,251 | 263,251 | |||||||||||||||||||||||||||||
| ADD: |
TOTAL DEBT |
94,955 | 94,408 | 92,345 | 77,990 | 77,990 | 75,700 | 74,486 | 75,101 | 75,101 | ||||||||||||||||||||||||||||
| TOTAL CAPITAL |
$ | 321,788 | $ | 330,338 | $ | 329,211 | $ | 321,649 | $ | 321,649 | $ | 325,581 | $ | 333,010 | $ | 338,352 | $ | 338,352 | ||||||||||||||||||||
| TOTAL DEBT / TOTAL CAPITAL |
29.5 | % | 28.6 | % | 28.1 | % | 24.2 | % | 24.2 | % | 23.3 | % | 22.4 | % | 22.2 | % | 22.2 | % | ||||||||||||||||||||
| EBIT [OPERATING INCOME PLUS OTHER NET (INCOME) EXPENSE] |
$ | 7,498 | $ | 7,681 | $ | 7,645 | $ | 8,236 | $ | 31,060 | $ | 7,459 | $ | 8,219 | $ | 8,163 | $ | 23,841 | ||||||||||||||||||||
| ADD: |
Other (income) expense, net |
102 | (382 | ) | 34 | (440 | ) | (686 | ) | (275 | ) | (417 | ) | (362 | ) | (1,054 | ) | |||||||||||||||||||||
| OPERATING INCOME |
$ | 7,600 | $ | 7,299 | $ | 7,679 | $ | 7,796 | $ | 30,374 | $ | 7,184 | $ | 7,802 | $ | 7,801 | $ | 22,787 | ||||||||||||||||||||
| EBITDA [OPERATING INCOME PLUS OTHER NET (INCOME) EXPENSE PLUS DEPRECIATION PLUS AMORTIZATION] |
$ | 10,322 | $ | 10,432 | $ | 10,171 | $ | 10,785 | $ | 41,710 | $ | 10,003 | $ | 10,857 | $ | 10,715 | $ | 31,575 | ||||||||||||||||||||
| LESS: |
Other (income) expense, net |
102 | (382 | ) | 34 | (440 | ) | (686 | ) | (275 | ) | (417 | ) | (362 | ) | (1,054 | ) | |||||||||||||||||||||
| Depreciation |
(2,745 | ) | (2,672 | ) | (2,452 | ) | (2,474 | ) | (10,343 | ) | (2,470 | ) | (2,563 | ) | (2,478 | ) | (7,511 | ) | ||||||||||||||||||||
| Amortization of intangibles |
(79 | ) | (79 | ) | (74 | ) | (75 | ) | (307 | ) | (74 | ) | (75 | ) | (74 | ) | (223 | ) | ||||||||||||||||||||
| OPERATING INCOME |
$ | 7,600 | $ | 7,299 | $ | 7,679 | $ | 7,796 | $ | 30,374 | $ | 7,184 | $ | 7,802 | $ | 7,801 | $ | 22,787 | ||||||||||||||||||||
| NOTE: | These non-GAAP key performance measures are provided for the convenience of financial analysts who have used such as additional measures of liquidity and leverage. |