CIRCOR Reports Financial Results for First Quarter Ended April 2, 2023
- Q1 Orders up 9% Reported and 13% Organically YoY
-
Q1 GAAP Operating Income of
$17.9 Million , Up 252% YoY; Adjusted Operating Income of$28.4 Million , Up 173% YoY -
Q1 GAAP EPS of
$(0.02) , Up$1.04 YoY Increases +98 %; Adjusted EPS of$0.53 , Up$0.48 YoY Increases +960% - Progressing with Review of Strategic Alternatives
Q1 2023 Overview (compared with Q1 2022):
-
Revenue of
$203 million up 9% reported and 13% organically-
Aerospace & Defense revenue of
$69 million , up 8% reported and 10% organically -
Industrial revenue of
$135 million , up 10% reported and up 15% organically
-
Aerospace & Defense revenue of
-
Orders of
$242 million , up 9% and 13% organically-
Aerospace & Defense orders of
$84 million , up 8% and 12% organically -
Industrial orders of
$158 million , up 10% and 14% organically
-
Aerospace & Defense orders of
-
GAAP operating income of
$17.9 million , up 252% - GAAP operating margin of 8.8%, up 1510 bps
-
Adjusted operating income of
$28.4 million , up 173% - Adjusted operating margin of 14.0%, up 840 bps
President and CEO
“Our value pricing initiatives, cost controls, and simplification actions continued to serve as growth and margin expansion levers during the quarter,"
Strategic Review
Related to the Company’s previously announced review of strategic alternatives, CIRCOR’s Board of Directors, supported by external advisors and the management team, continues to progress with the review. Through its external advisors, the Board is in dialogue with a number of parties that have expressed interest in acquiring all or parts of the Company. The Company may suspend or terminate the review at any time and does not intend to make further announcements regarding the process unless and until the Board of Directors approves a course of action for which further disclosure is required or appropriate. The exploration of strategic alternatives may not result in any transaction or strategic change.
Conference Call Information
Selected Consolidated Results
|
|||||||||||
($ millions except EPS) |
|
Q1 2023 |
|
Q1 2022 |
|
Change |
|
||||
Revenue1 |
|
$ |
203.1 |
|
|
$ |
185.7 |
|
|
9% |
|
GAAP operating income (loss) |
|
|
17.9 |
|
|
|
(11.8 |
) |
|
252% |
|
Adjusted operating income2 |
|
|
28.4 |
|
|
|
10.4 |
|
|
173% |
|
GAAP operating margin |
|
|
8.8 |
% |
|
|
(6.3 |
)% |
|
1510 bps |
|
Adjusted operating margin3 |
|
|
14.0 |
% |
|
|
5.6 |
% |
|
840 bps |
|
GAAP (loss) per share |
|
$ |
(0.02 |
) |
|
$ |
(1.06 |
) |
|
98% |
|
Adjusted earnings per share (diluted)4 |
|
$ |
0.53 |
|
|
$ |
0.05 |
|
|
960% |
|
Operating cash flow |
|
|
(13.9 |
) |
|
|
(15.9 |
) |
|
14% |
|
Adjusted free cash flow5 |
|
|
(16.6 |
) |
|
|
(19.5 |
) |
|
15% |
|
Orders6 |
|
$ |
242.1 |
|
|
$ |
221.6 |
|
|
9% |
|
Segment Results
|
|||||||||||
($ in millions) |
|
Q1 2023 |
|
Q1 2022 |
|
Change |
|
||||
Aerospace & Defense |
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
68.6 |
|
|
$ |
63.4 |
|
|
8% |
|
Segment operating income |
|
|
14.7 |
|
|
|
11.3 |
|
|
30% |
|
Segment operating margin |
|
|
21.5 |
% |
|
|
17.9 |
% |
|
360 bps |
|
Orders6 |
|
$ |
84.4 |
|
|
$ |
77.9 |
|
|
8% |
|
|
|
|
|
|
|
|
|
||||
Industrial |
|
|
|
|
|
|
|
||||
Revenue1 |
|
$ |
134.5 |
|
|
$ |
122.3 |
|
|
10% |
|
Segment operating income2 |
|
|
20.4 |
|
|
|
6.9 |
|
|
196% |
|
Segment operating margin3 |
|
|
15.2 |
% |
|
|
5.6 |
% |
|
960 bps |
|
Orders6 |
|
$ |
157.7 |
|
|
$ |
143.7 |
|
|
10% |
|
-
Consolidated and Industrial segment revenues for Q1 2023 and Q1 2022 included
$0.0 million and$3.0 million , respectively, relating to our Pipeline Engineering business. -
Adjusted operating income is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” for an explanation of our non-GAAP financial measures and to the reconciliations included in this press release. Adjusted operating income and Industrial segment operating income for the Q1 2023 and Q1 2022 included
$0.1 million and$(3.2) million , respectively, relating to our Pipeline Engineering business. - Adjusted operating margin is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” for an explanation of our non-GAAP financial measures and to the reconciliations included in this press release. Refer to “Use of Non-GAAP Financial Measures” for an explanation of our non-GAAP financial measures and to the reconciliations included in this press release. Adjusted operating margin for Q1 2023 and Q1 2022 included 0% and (61)%, respectively, relating to our Pipeline Engineering business.
-
Adjusted earnings per share (diluted) is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” for an explanation of our non-GAAP financial measures and to the reconciliations included in this press release. Refer to “Use of Non-GAAP Financial Measures” for an explanation of our non-GAAP financial measures and to the reconciliations included in this press release. Adjusted earnings per share and our segment results for Q1 2023 exclude net loss from non-cash acquisition-related intangible amortization and special and restructuring charges of
$10.5 million , consisting of (i)$9.0 million for non-cash acquisition-related intangible amortization and depreciation expense; (ii)$1.3 million of special charges related to the evaluation of strategic alternatives for the Company; and (iii) other special and restructuring charges net of$0.2 million . Adjusted consolidated and segment results for Q1 2022 exclude net loss from non-cash acquisition-related intangible amortization and special and restructuring charges of$22.2 million . These charges include: (i)$10.4 million for non-cash acquisition-related intangible amortization and depreciation expense; (ii)$8.7 million of restructuring costs associated with the exit of the Pipeline Engineering business; (iii)$1.3 million costs due to the investigation into the accounting irregularities of the Pipeline Engineering business; (iv)$0.9 million charge for severance related to the former CEO; and (v)$0.9 million of other special and restructuring costs. - Adjusted free cash flow, a non-GAAP financial measure, is calculated by subtracting GAAP capital expenditures, net of proceeds from asset sales and third party funding, from GAAP operating cash flow. Refer to “Use of Non-GAAP Financial Measures” for an explanation of our non-GAAP financial measures and to the reconciliations included in this press release. Refer to “Use of Non-GAAP Financial Measures” for an explanation of our non-GAAP financial measures and to the reconciliations included in this press release.
-
Orders, an operating measure, is defined as a legally binding agreement from an authorized individual at a customer requesting
CIRCOR to provide goods and/or services at a fixed or determinable price andCIRCOR is capable of providing such goods and services, when the terms and conditions are firm enough to assure subsequent payment by the customer. Consolidated and Industrial segment orders for Q1 2023 and Q1 2022 included$0.0 million and$2.3 million , respectively, relating to our Pipeline Engineering business.
Use of Non-GAAP Financial Measures
In this press release, the Company uses the non-GAAP financial measures adjusted net income, adjusted EBITDA, adjusted operating income, adjusted operating margin, adjusted earnings per share, adjusted free cash flow, and gross debt, net of cash. Non-GAAP financial measures are used by management in our financial and operating decision making because we believe they reflect our ongoing business and facilitate period-to-period comparisons. We believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating CIRCOR’s current operating performance and future prospects in the same manner as management does if they so choose. These non-GAAP financial measures can also assist investors and others in comparing CIRCOR’s current financial results with CIRCOR’s past financial results in a consistent manner.
We exclude costs and tax effects associated with special and restructuring activities, such as reducing overhead and consolidating facilities. We believe that the costs related to special and restructuring activities are not indicative of our normal operating costs. We exclude certain acquisition-related costs, including significant transaction costs and amortization of inventory and fixed-asset step-ups and the related tax effects. We exclude these costs because we do not believe they are indicative of our normal operating costs.
We exclude the expense and tax effects associated with the non-cash amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives up to 25 years. Exclusion of the non-cash amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.
We exclude certain gains/losses and related tax effects, which are either isolated or cannot be expected to occur again with any predictability, and that we believe are not indicative of our normal operating gains and losses. For example, we exclude gains/losses from items such as the sale of a business, significant litigation-related matters and lump-sum pension plan settlements. We exclude the results of discontinued operations. We exclude goodwill impairment charges. We exclude these costs because we do not believe they are indicative of our normal operating costs.
Due to the significance of recently sold or exited businesses and to provide a comparison of changes in our revenue and orders (an operating measure), we also discuss these changes on an “organic” basis. Organic is calculated assuming the divestitures and/or exited businesses completed prior to
CIRCOR’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company’s operating performance and comparing such performance to that of prior periods and to the performance of our peers. We use such measures when publicly providing our business outlook, assessing future earnings potential, evaluating potential acquisitions and dispositions and in our financial and operating decision-making process, including for compensation purposes.
Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with accounting principles generally accepted in
About
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
|
|||||||
|
Three Months Ended |
||||||
|
|
|
|
||||
Net revenues |
$ |
203,097 |
|
|
$ |
185,655 |
|
Cost of revenues |
|
129,031 |
|
|
|
130,372 |
|
Gross profit |
|
74,066 |
|
|
|
55,283 |
|
Selling, general and administrative expenses |
|
54,666 |
|
|
|
58,069 |
|
Special and restructuring charges, net |
|
1,484 |
|
|
|
9,003 |
|
Operating income (loss) |
|
17,916 |
|
|
|
(11,789 |
) |
Other expense (income): |
|
|
|
||||
Interest expense, net |
|
14,528 |
|
|
|
9,456 |
|
Other expense (income), net |
|
214 |
|
|
|
(1,287 |
) |
Total other expense, net |
|
14,742 |
|
|
|
8,169 |
|
Income (loss) before income taxes |
|
3,174 |
|
|
|
(19,958 |
) |
Provision for income taxes |
|
3,581 |
|
|
|
1,523 |
|
Net loss |
$ |
(407 |
) |
|
$ |
(21,481 |
) |
|
|
|
|
||||
Net loss per share (basic and diluted) |
$ |
(0.02 |
) |
|
$ |
(1.06 |
) |
|
|
|
|
||||
Weighted-average common shares (basic and diluted) |
|
20,368 |
|
|
|
20,310 |
|
|
|||||||
|
Three Months Ended |
||||||
|
|
|
|
||||
OPERATING ACTIVITIES |
|
|
|
||||
Net loss |
$ |
(407 |
) |
|
$ |
(21,481 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation |
|
4,712 |
|
|
|
5,000 |
|
Amortization |
|
7,925 |
|
|
|
9,397 |
|
Change in provision for bad debt expense |
|
(350 |
) |
|
|
(89 |
) |
Write down of inventory |
|
1,497 |
|
|
|
439 |
|
Compensation expense for share-based plans |
|
1033 |
|
|
|
(84 |
) |
Amortization of debt issuance costs |
|
975 |
|
|
|
514 |
|
Other impairment charges |
|
— |
|
|
|
8,011 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Trade accounts receivable |
|
237 |
|
|
|
4,242 |
|
Inventories |
|
(17,971 |
) |
|
|
(15,465 |
) |
Prepaid expenses and other assets |
|
(4,811 |
) |
|
|
(5,671 |
) |
Accounts payable, accrued expenses and other liabilities |
|
(6,766 |
) |
|
|
(737 |
) |
Net cash used in operating activities |
|
(13,926 |
) |
|
|
(15,924 |
) |
INVESTING ACTIVITIES |
|
|
|
||||
Additions to property, plant and equipment |
|
(5,045 |
) |
|
|
(3,607 |
) |
Proceeds from the sale of property, plant and equipment |
|
38 |
|
|
|
15 |
|
Supplier funding |
|
2,370 |
|
|
|
— |
|
Proceeds from beneficial interest of factored receivables |
|
1,097 |
|
|
|
927 |
|
Net cash used in investing activities |
|
(1,540 |
) |
|
|
(2,665 |
) |
FINANCING ACTIVITIES |
|
|
|
||||
Proceeds from long-term debt |
|
53,475 |
|
|
|
51,325 |
|
Payments of long-term debt |
|
(50,800 |
) |
|
|
(30,875 |
) |
Net change in short-term borrowings |
|
— |
|
|
|
925 |
|
Withholding tax payments on net share settlements on equity awards |
|
(450 |
) |
|
|
(821 |
) |
Net cash used in continuing financing activities |
|
2,225 |
|
|
|
— |
|
Net cash provided by financing activities |
|
2,225 |
|
|
|
20,554 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
537 |
|
|
|
(712 |
) |
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
|
(12,704 |
) |
|
|
1,253 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
66,724 |
|
|
|
61,374 |
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD |
|
54,020 |
|
|
|
62,627 |
|
|
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash and cash equivalents |
$ |
52,080 |
|
|
$ |
64,275 |
|
Trade accounts receivable, net |
|
111,557 |
|
|
|
109,754 |
|
Inventories |
|
156,967 |
|
|
|
139,786 |
|
Prepaid expenses and other current assets |
|
120,124 |
|
|
|
117,766 |
|
Total Current Assets |
|
440,728 |
|
|
|
431,581 |
|
PROPERTY, PLANT AND EQUIPMENT, NET |
|
142,147 |
|
|
|
141,141 |
|
OTHER ASSETS: |
|
|
|
||||
|
|
120,114 |
|
|
|
119,847 |
|
Intangibles, net |
|
249,379 |
|
|
|
256,338 |
|
Lease right-of-use assets, net |
|
41,389 |
|
|
|
42,491 |
|
Deferred income taxes |
|
507 |
|
|
|
512 |
|
Other assets |
|
21,465 |
|
|
|
20,777 |
|
TOTAL ASSETS |
$ |
1,015,729 |
|
|
$ |
1,012,687 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable |
|
80,224 |
|
|
|
78,778 |
|
Accrued expenses and other current liabilities |
|
83,695 |
|
|
|
84,510 |
|
Accrued compensation and benefits |
|
28,100 |
|
|
|
30,817 |
|
Total Current Liabilities |
|
192,019 |
|
|
|
194,105 |
|
LONG-TERM DEBT |
|
500,042 |
|
|
|
496,534 |
|
DEFERRED INCOME TAXES |
|
18,422 |
|
|
|
18,238 |
|
PENSION LIABILITY, NET |
|
87,090 |
|
|
|
85,968 |
|
LONG-TERM LEASE LIABILITIES |
|
37,618 |
|
|
|
38,480 |
|
OTHER NON-CURRENT LIABILITIES |
|
19,300 |
|
|
|
20,316 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
||||
SHAREHOLDERS’ EQUITY: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
218 |
|
|
|
218 |
|
Additional paid-in capital |
|
456,685 |
|
|
|
456,102 |
|
Accumulated deficit |
|
(179,100 |
) |
|
|
(178,693 |
) |
Common treasury stock, at cost (1,372,488 shares at |
|
(74,472 |
) |
|
|
(74,472 |
) |
Accumulated other comprehensive loss, net of tax |
|
(42,093 |
) |
|
|
(44,109 |
) |
Total Shareholders’ Equity |
|
161,238 |
|
|
|
159,046 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
1,015,729 |
|
|
$ |
1,012,687 |
|
|
|
|
|
|
|||||||
|
|
Three Months Ended |
|
||||
|
|
|
|
|
|
||
ORDERS (1) |
|||||||
Aerospace & Defense |
|
$ |
84.4 |
|
$ |
77.9 |
|
Industrial |
|
|
157.7 |
|
|
143.7 |
|
Total orders |
|
$ |
242.1 |
|
$ |
221.6 |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||
BACKLOG (2) |
|
|
|
|
|
||
Aerospace & Defense |
|
$ |
224.8 |
|
$ |
199.7 |
|
Industrial |
|
|
358.8 |
|
|
276.8 |
|
Total backlog |
|
$ |
583.6 |
|
$ |
476.5 |
|
1. Orders do not include the foreign exchange impact due to the re-measurement of customer backlog amounts denominated in foreign currencies. Industrial includes |
|||||||
2. Backlog includes unshipped customer orders for which revenue has not been recognized. |
|||||||
|
||||||||||||||||||||||
|
|
2022 |
2023 |
|||||||||||||||||||
|
|
1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
TOTAL |
1ST QTR |
TOTAL |
||||||||||||||
ORDERS |
|
|
|
|
|
|
|
|
||||||||||||||
Aerospace & Defense |
|
$ |
77,890 |
|
$ |
69,053 |
|
$ |
90,486 |
|
$ |
70,778 |
|
$ |
308,207 |
|
$ |
84,400 |
|
$ |
84,400 |
|
Industrial |
|
|
143,727 |
|
|
139,370 |
|
|
137,848 |
|
|
178,069 |
|
|
599,014 |
|
|
157,705 |
|
|
157,705 |
|
Total |
|
$ |
221,617 |
|
$ |
208,423 |
|
$ |
228,334 |
|
$ |
248,847 |
|
$ |
907,221 |
|
$ |
242,105 |
|
$ |
242,105 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
NET REVENUES |
|
|
|
|
|
|
|
|
||||||||||||||
Aerospace & Defense |
|
$ |
63,370 |
|
$ |
67,271 |
|
$ |
72,219 |
|
$ |
79,855 |
|
$ |
282,715 |
|
$ |
68,551 |
|
$ |
68,551 |
|
Industrial |
|
|
122,285 |
|
|
124,105 |
|
|
123,143 |
|
|
134,672 |
|
|
504,204 |
|
|
134,546 |
|
|
134,546 |
|
Total |
|
$ |
185,655 |
|
$ |
191,376 |
|
$ |
195,362 |
|
$ |
214,527 |
|
$ |
786,919 |
|
$ |
203,097 |
|
$ |
203,097 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
SEGMENT OPERATING INCOME |
|
|
|
|
|
|||||||||||||||||
Aerospace & Defense |
|
$ |
11,320 |
|
$ |
13,566 |
|
$ |
16,891 |
|
$ |
21,807 |
|
$ |
63,584 |
|
$ |
14,714 |
|
$ |
14,714 |
|
Industrial |
|
|
6,857 |
|
|
8,484 |
|
|
15,717 |
|
|
18,244 |
|
|
49,302 |
|
|
20,402 |
|
|
20,402 |
|
Corporate expenses |
|
|
(7,770 |
) |
|
(5,485 |
) |
|
(5,301 |
) |
|
(6,828 |
) |
|
(25,384 |
) |
|
(6,743 |
) |
|
(6,743 |
) |
Total |
|
$ |
10,407 |
|
$ |
16,565 |
|
$ |
27,307 |
|
$ |
33,223 |
|
$ |
87,502 |
|
$ |
28,373 |
|
$ |
28,373 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
SEGMENT OPERATING MARGIN % |
|
|
|
|
|
|||||||||||||||||
Aerospace & Defense |
|
|
17.9 |
% |
|
20.2 |
% |
|
23.4 |
% |
|
27.3 |
% |
|
22.5 |
% |
|
21.5 |
% |
|
21.5 |
% |
Industrial |
|
|
5.6 |
% |
|
6.8 |
% |
|
12.8 |
% |
|
13.5 |
% |
|
9.8 |
% |
|
15.2 |
% |
|
15.2 |
% |
Total |
|
|
5.6 |
% |
|
8.7 |
% |
|
14.0 |
% |
|
15.5 |
% |
|
11.1 |
% |
|
14.0 |
% |
|
14.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
2022 |
2023 |
|||||||||||||||||||
Pipeline Engineering1 |
|
1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
TOTAL |
1ST QTR |
TOTAL |
||||||||||||||
ORDERS - Industrial |
|
$ |
2,260 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
2,260 |
|
$ |
— |
|
$ |
— |
|
NET REVENUES - Industrial |
|
$ |
3,012 |
|
$ |
218 |
|
$ |
8 |
|
$ |
11 |
|
$ |
3,249 |
|
$ |
— |
|
$ |
— |
|
SEGMENT OP. INC. -Industrial |
|
$ |
(3,190 |
) |
$ |
(1,074 |
) |
$ |
(150 |
) |
$ |
26 |
|
$ |
(4,388 |
) |
$ |
125 |
|
$ |
125 |
|
Segment Operating Margin % |
|
|
(105.9 |
)% |
|
(492.7 |
)% |
|
(1875.0 |
)% |
|
236.4 |
% |
|
(135.1 |
)% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
||||||||||||||||||||||
|
||||||||||||||||||||||
|
|
2022 |
2023 |
|||||||||||||||||||
|
|
1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
TOTAL |
1ST QTR |
TOTAL |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
$ |
(15,924 |
) |
$ |
(3,593 |
) |
$ |
(9,815 |
) |
$ |
28,511 |
|
$ |
(821 |
) |
$ |
(13,926 |
) |
$ |
(13,926 |
) |
|
LESS |
|
|
|
|
|
|
|
|
||||||||||||||
Capital expenditures, net of sale proceeds1 |
|
3,592 |
|
|
5,461 |
|
|
4,156 |
|
|
8,675 |
|
|
21,884 |
|
|
2,637 |
|
|
2,637 |
|
|
ADJUSTED FREE CASH FLOW |
$ |
(19,516 |
) |
$ |
(9,054 |
) |
$ |
(13,971 |
) |
$ |
19,836 |
|
$ |
(22,705 |
) |
$ |
(16,563 |
) |
$ |
(16,563 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross Debt |
|
$ |
547,681 |
|
$ |
543,100 |
|
$ |
522,975 |
|
$ |
516,925 |
|
$ |
516,925 |
|
$ |
519,600 |
|
$ |
519,600 |
|
Less: Cash & Cash equivalents |
|
61,122 |
|
|
55,238 |
|
|
47,131 |
|
|
64,275 |
|
|
64,275 |
|
|
52,080 |
|
|
52,080 |
|
|
GROSS DEBT, NET OF CASH |
$ |
486,559 |
|
$ |
487,862 |
|
$ |
475,844 |
|
$ |
452,650 |
|
$ |
452,650 |
|
$ |
467,520 |
|
$ |
467,520 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
TOTAL SHAREHOLDERS' EQUITY |
$ |
110,321 |
|
$ |
103,663 |
|
$ |
122,082 |
|
$ |
159,046 |
|
$ |
159,046 |
|
$ |
161,238 |
|
$ |
161,238 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GROSS DEBT AS % OF EQUITY |
|
496 |
% |
|
524 |
% |
|
428 |
% |
|
325 |
% |
|
325 |
% |
|
322 |
% |
|
322 |
% |
|
GROSS DEBT, NET OF CASH AS % OF EQUITY |
|
441 |
% |
|
471 |
% |
|
390 |
% |
|
285 |
% |
|
285 |
% |
|
290 |
% |
|
290 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
||||||||||||||||||||||
|
||||||||||||||||||||||
|
|
2022 |
2023 |
|||||||||||||||||||
|
|
1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
TOTAL |
1ST QTR |
TOTAL |
||||||||||||||
NET (LOSS) INCOME |
|
$ |
(21,481 |
) |
$ |
3,960 |
|
$ |
31,470 |
|
$ |
5,439 |
|
$ |
19,388 |
|
$ |
(407 |
) |
$ |
(407 |
) |
LESS: |
|
|
|
|
|
|
|
|
||||||||||||||
Restructuring related inventory charges (recoveries), net |
|
|
2,757 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,757 |
|
|
— |
|
|
— |
|
Restructuring charges (recoveries), net |
|
|
6,447 |
|
|
4,695 |
|
|
(173 |
) |
|
97 |
|
|
11,066 |
|
|
(216 |
) |
|
(216 |
) |
Acquisition amortization |
|
|
9,391 |
|
|
9,178 |
|
|
9,118 |
|
|
8,651 |
|
|
36,338 |
|
|
7,920 |
|
|
7,920 |
|
Acquisition depreciation |
|
|
1,045 |
|
|
1,239 |
|
|
1,335 |
|
|
995 |
|
|
4,614 |
|
|
1,053 |
|
|
1,053 |
|
Special (recoveries) charges, net |
|
|
2,556 |
|
|
(10,425 |
) |
|
(25,529 |
) |
|
3,319 |
|
|
(30,079 |
) |
|
1,700 |
|
|
1,700 |
|
Income tax impact |
|
|
384 |
|
|
(2,207 |
) |
|
(2,066 |
) |
|
(2,739 |
) |
|
(6,628 |
) |
|
843 |
|
|
843 |
|
ADJUSTED NET INCOME |
|
$ |
1,099 |
|
$ |
6,440 |
|
$ |
14,155 |
|
$ |
15,762 |
|
$ |
37,456 |
|
$ |
10,893 |
|
$ |
10,893 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(LOSS) EARNINGS PER COMMON SHARE (Diluted) |
|
$ |
(1.06 |
) |
$ |
0.19 |
|
$ |
1.54 |
|
$ |
0.27 |
|
$ |
0.95 |
|
$ |
(0.02 |
) |
$ |
(0.02 |
) |
LESS: |
|
|
|
|
|
|
|
|
||||||||||||||
Restructuring related inventory charges |
|
|
0.14 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.14 |
|
|
— |
|
|
— |
|
Restructuring charges (recoveries), net |
|
|
0.32 |
|
|
0.23 |
|
|
(0.01 |
) |
|
— |
|
|
0.54 |
|
|
(0.01 |
) |
|
(0.01 |
) |
Acquisition amortization |
|
|
0.46 |
|
|
0.45 |
|
|
0.45 |
|
|
0.42 |
|
|
1.78 |
|
|
0.39 |
|
|
0.39 |
|
Acquisition depreciation |
|
|
0.05 |
|
|
0.06 |
|
|
0.07 |
|
|
0.05 |
|
|
0.23 |
|
|
0.05 |
|
|
0.05 |
|
Special (recoveries) charges, net |
|
|
0.13 |
|
|
(0.51 |
) |
|
(1.25 |
) |
|
0.16 |
|
|
(1.47 |
) |
|
0.08 |
|
|
0.08 |
|
Income tax impact |
|
|
0.02 |
|
|
(0.11 |
) |
|
(0.10 |
) |
|
(0.13 |
) |
|
(0.32 |
) |
|
0.04 |
|
|
0.04 |
|
ADJUSTED EARNINGS PER SHARE (Diluted) |
|
$ |
0.05 |
|
$ |
0.32 |
|
$ |
0.69 |
|
$ |
0.77 |
|
$ |
1.83 |
|
$ |
0.53 |
|
$ |
0.53 |
|
|
|||||||||||||||||||||
|
|
2022 |
2023 |
||||||||||||||||||
|
|
1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
TOTAL |
1ST QTR |
TOTAL |
|||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
NET INCOME (LOSS) |
|
$ |
(21,481 |
) |
$ |
3,960 |
|
$ |
31,470 |
|
$ |
5,439 |
$ |
19,388 |
|
$ |
(407 |
) |
$ |
(407 |
) |
LESS: |
|
|
|
|
|
|
|
|
|||||||||||||
Interest expense, net |
|
9,456 |
|
|
10,203 |
|
|
11,821 |
|
|
13,405 |
|
44,886 |
|
|
14,528 |
|
|
14,528 |
|
|
Depreciation |
|
|
5,000 |
|
|
5,056 |
|
|
4,956 |
|
|
4,679 |
|
19,691 |
|
|
4,712 |
|
|
4,712 |
|
Amortization |
|
|
9,397 |
|
|
9,183 |
|
|
9,124 |
|
|
8,656 |
|
36,360 |
|
|
7,925 |
|
|
7,925 |
|
Provision for income taxes |
|
1,523 |
|
|
(647 |
) |
|
1,661 |
|
|
1,742 |
|
4,279 |
|
|
3,581 |
|
|
3,581 |
|
|
EBITDA |
|
$ |
3,895 |
|
$ |
27,755 |
|
$ |
59,032 |
|
$ |
33,921 |
$ |
124,604 |
|
$ |
30,339 |
|
$ |
30,339 |
|
LESS: |
|
|
|
|
|
|
|
|
|||||||||||||
Restructuring related inventory charges (recoveries) |
|
2,757 |
|
|
— |
|
|
— |
|
|
— |
|
2,757 |
|
|
— |
|
|
— |
|
|
Restructuring charges (recoveries), net |
|
6,447 |
|
|
4,695 |
|
|
(173 |
) |
|
97 |
|
11,066 |
|
|
(216 |
) |
|
(216 |
) |
|
Special (recoveries) charges, net |
|
2,556 |
|
|
(10,425 |
) |
|
(25,529 |
) |
|
3,319 |
|
(30,079 |
) |
|
1,700 |
|
|
1,700 |
|
|
ADJUSTED EBITDA |
|
$ |
15,655 |
|
$ |
22,025 |
|
$ |
33,330 |
|
$ |
37,337 |
$ |
108,348 |
|
$ |
31,823 |
|
$ |
31,823 |
|
|
||||||||||||||||||||||
|
|
2022 |
2023 |
|||||||||||||||||||
|
|
1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
TOTAL |
1ST QTR |
TOTAL |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
OPERATING (LOSS) INCOME |
|
$ |
(11,789 |
) |
$ |
11,878 |
|
$ |
42,556 |
|
$ |
20,161 |
|
$ |
62,806 |
|
$ |
17,916 |
|
$ |
17,916 |
|
LESS: |
|
|
|
|
|
|
|
|
||||||||||||||
Restructuring related inventory charges (recoveries) |
|
|
2,757 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,757 |
|
|
— |
|
|
— |
|
Restructuring charges (recoveries), net |
|
|
6,447 |
|
|
4,695 |
|
|
(173 |
) |
|
97 |
|
|
11,066 |
|
|
(216 |
) |
|
(216 |
) |
Acquisition amortization |
|
|
9,391 |
|
|
9,178 |
|
|
9,118 |
|
|
8,651 |
|
|
36,338 |
|
|
7,920 |
|
|
7,920 |
|
Acquisition depreciation |
|
|
1,045 |
|
|
1,239 |
|
|
1,335 |
|
|
995 |
|
|
4,614 |
|
|
1,053 |
|
|
1,053 |
|
Special (recoveries) charges, net |
|
|
2,556 |
|
|
(10,425 |
) |
|
(25,529 |
) |
|
3,319 |
|
|
(30,079 |
) |
|
1,700 |
|
|
1,700 |
|
ADJUSTED OPERATING INCOME |
|
$ |
10,407 |
|
$ |
16,565 |
|
$ |
27,307 |
|
$ |
33,223 |
|
$ |
87,502 |
|
$ |
28,373 |
|
$ |
28,373 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OPERATING MARGIN |
|
|
(6.3 |
) % |
|
6.2 |
% |
|
21.8 |
% |
|
9.4 |
% |
|
8.0 |
% |
|
8.8 |
% |
|
8.8 |
% |
LESS: |
|
|
|
|
|
|
|
|
||||||||||||||
Restructuring related inventory charges (recoveries) |
|
|
1.5 |
% |
|
0.0 |
% |
|
0.0 |
% |
|
0.0 |
% |
|
0.4 |
% |
|
0.0 |
% |
|
0.0 |
% |
Restructuring charges (recoveries), net |
|
|
3.5 |
% |
|
2.5 |
% |
|
(0.1 |
)% |
|
0.0 |
% |
|
1.4 |
% |
|
(0.1 |
) % |
|
(0.1 |
)% |
Acquisition amortization |
|
|
5.1 |
% |
|
4.8 |
% |
|
4.7 |
% |
|
4.0 |
% |
|
4.6 |
% |
|
3.9 |
% |
|
3.9 |
% |
Acquisition depreciation |
|
|
0.6 |
% |
|
0.6 |
% |
|
0.7 |
% |
|
0.5 |
% |
|
0.6 |
% |
|
0.5 |
% |
|
0.5 |
% |
Special (recoveries) charges, net |
|
|
1.4 |
% |
|
(5.4 |
) % |
|
(13.1 |
)% |
|
1.5 |
% |
|
(3.8 |
)% |
|
0.8 |
% |
|
0.8 |
% |
ADJUSTED OPERATING MARGIN |
|
|
5.6 |
% |
|
8.7 |
% |
|
14.0 |
% |
|
15.5 |
% |
|
11.1 |
% |
|
14.0 |
% |
|
14.0 |
% |
|
|||||||||
Q1'23 Organic Orders and Revenue |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace & Defense |
Industrial |
||||||
|
1Q 23 |
1Q 22 |
Variance |
1Q 23 |
1Q 22 |
Variance |
1Q 23 |
1Q 22 |
Variance |
Orders |
242,105 |
221,617 |
9% |
84,400 |
77,890 |
8% |
157,705 |
143,727 |
10% |
Divestitures |
— |
— |
|
— |
— |
|
— |
— |
|
FX |
8,291 |
|
|
2,499 |
|
|
5,792 |
|
|
Organic |
250,395 |
221,617 |
13% |
86,899 |
77,890 |
12% |
163,497 |
143,727 |
14% |
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace & Defense |
Industrial |
||||||
|
1Q 23 |
1Q 22 |
Variance |
1Q 23 |
1Q 22 |
Variance |
1Q 23 |
1Q 22 |
Variance |
Revenue |
203,097 |
185,655 |
9% |
68,551 |
63,370 |
8% |
134,546 |
122,285 |
10% |
Divestitures |
— |
— |
|
— |
— |
|
— |
— |
|
FX |
6,709 |
|
|
1,191 |
|
|
5,518 |
|
|
Organic |
209,806 |
185,655 |
13% |
69,742 |
63,370 |
10% |
140,064 |
122,285 |
15% |
Note regarding financial statements: Financial amounts are computed independently each quarter; therefore, the sum of the quarterly amounts may not equal the total amount for the respective year due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230510005972/en/
Senior Vice President
(857) 383-2409
Source: