CIRCOR Reports Fourth-Quarter and Year-End 2013 Financial Results

BURLINGTON, Mass.--(BUSINESS WIRE)--Feb. 27, 2014-- 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 fourth quarter and fiscal year ended December 31, 2013.

Fourth-Quarter 2013 Highlights

Orders up 14%
Organic revenue growth of 6%
Adjusted operating margin increased 380 basis points to 11.6%
Adjusted EPS grew 38% to $0.95

Full-Year 2013 Highlights

Adjusted operating margin increased 210 basis points to 9.9%
Adjusted EPS grew 24% to $3.21
Free cash flow was $55 million or 116% of net income
2013 restructuring actions completed or on schedule

“CIRCOR ended 2013 with strong fourth-quarter bookings, margin expansion and free cash flow,” said Scott Buckhout, CIRCOR President and Chief Executive Officer. “We delivered another quarter of double-digit adjusted operating margin at 11.6%, which was up 380 basis points from the fourth quarter of 2012 due primarily to our margin improvement actions. In addition, we delivered strong free cash flow at 116% of net income for the full year.”

“Revenue for the quarter came in higher by 6% organically but lower than anticipated as a few large Energy shipments were rescheduled into the first half of 2014,” said Buckhout. “Energy segment bookings improved in Q4 as demand increased and our win rate improved for large international projects.”

“Our organizational change from three operating segments to two is now complete,” said Buckhout. “We are on track to deliver our planned $5 million reduction in annual costs. As we enter 2014, CIRCOR has a simpler organizational structure and is better positioned to grow. We remain focused on core revenue growth, margin expansion, and strong free cash flow.”


Selected Consolidated Results
(In millions, except percents and bps)	Q4 2013		Q4 2012		Change	FY 2013		FY 2012		Change

Revenue	$	214.0	$	201.6	6%	$	857.8	$	845.6	1%
Adjusted Operating Income	$	24.8	$	15.6	59%	$	85.3	$	66.3	29%
Adjusted Operating Margin		11.6%		7.8%	380 bps		9.9%		7.8%	210 bps
Adjusted Earnings Per Share (Diluted)	$	0.95	$	0.69	38%	$	3.21	$	2.59	24%
Orders	$	231.1	$	202.3	14%	$	881.3	$	903.7	(2%)
Backlog						$	462.6	$	447.0	3%
Free Cash Flow						$	54.9	$	42.4	30%

Note: These amounts exclude special and impairment charges. Refer to reconciliation to commonly used US GAAP terms.


Segment Results
(In millions, except percents and bps)	Q4 2013		Q4 2012		Change	FY 2013		FY 2012		Change

Energy
Revenue	$	162.6	$	156.2	4%	$	661.0	$	659.4	-
Adjusted Operating Margin		17.1%		11.9%	520 bps		14.1%		11.1%	300 bps
Orders	$	187.4	$	156.6	20%	$	691.7	$	714.2	(3%)
Backlog						$	288.7	$	266.0	9%

Aerospace & Defense
Revenue	$	51.4	$	45.4	13%	$	196.8	$	186.2	6%
Adjusted Operating Margin		8.4%		5.1%	330 bps		9.5%		9.0%	50 bps
Orders	$	43.7	$	45.7	(4%)	$	189.6	$	189.6	0%
Backlog						$	173.9	$	181.1	(4%)

Note: These amounts exclude special and impairment charges. Refer to reconciliation to commonly used US GAAP terms.

On October 31, 2013 the Company announced a change from three reportable segments to two reportable segments beginning in the fourth quarter of 2013. On January 23, 2014 the Company released supplemental information to previously issued summary financial information by reportable segment for each of the prior quarterly reporting periods from the first quarter of 2011 through the third quarter of 2013. This information was set forth in a Form 8-K filed with the Securities and Exchange Commission. The segment realignment has no effect on the Company’s previously reported net income, financial condition or cash flows.

First-Quarter 2014 Guidance

For the first quarter of 2014, the Company expects:

Revenues in the range of $200 million to $210 million;
Adjusted earnings per share, excluding special charges, in the range of $0.68 to $0.73; and
Restructuring related trailing costs of approximately $1.5 million to $1.7 million and a special gain of $2.2 million for a legal settlement.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, February 27, 2014, at 10:00 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 diluted share, 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 first-quarter revenue and earnings guidance and estimated total annualized pre-tax savings from restructuring actions. 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, 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. With more than 7,000 customers in over 100 countries, 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 web site at http://investors.circor.com.


CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
UNAUDITED

	Three Months Ended					Twelve Months Ended
	December 31, 2013		December 31, 2012			December 31, 2013		December 31, 2012
Net revenues	$	214,035	$	201,606		$	857,808	$	845,552
Cost of revenues	146,528		141,186			590,207		604,009
GROSS PROFIT	67,507		60,420			267,601		241,543
Selling, general and administrative expenses	43,394		44,820			182,954		179,382
Impairment charges	6,872		—			6,872		10,348
Special charges, net	5,160		3,905			8,602		5,282
OPERATING INCOME	12,081		11,695			69,173		46,531
Other (income) expense:
Interest expense, net	792		1,038			3,161		4,259
Other, net	167		(373		)	1,975		513
TOTAL OTHER EXPENSE	959		665			5,136		4,772
INCOME BEFORE INCOME TAXES	11,122		11,030			64,037		41,759
Provision for income taxes	2,297		1,821			16,916		10,960
NET INCOME	$	8,825	$	9,209		$	47,121	$	30,799
Earnings per common share:
Basic	$	0.50	$	0.53		$	2.68	$	1.77
Diluted	$	0.50	$	0.53		$	2.67	$	1.76
Weighted average number of common shares outstanding:
Basic	17,594		17,450			17,564		17,405
Diluted	17,710		17,499			17,629		17,452
Dividends paid per common share	$	0.0375	$	0.0375		$	0.1500	$	0.1500


CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(UNAUDITED)

	Twelve Months Ended
	December 31, 2013			December 31, 2012
OPERATING ACTIVITIES
Net income	$	47,121		$	30,799
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	16,034			15,732
Amortization	3,039			3,596
Intangible impairment charges	6,872			10,348
Payment provision for Leslie bankruptcy settlement	—			(1,000		)
Compensation expense of stock-based plans	5,056			4,374
Tax effect of share-based compensation	(732		)	642
Deferred income taxes	5,778			(832		)
(Gain) loss on disposal of property, plant and equipment	(322		)	1,135
Gain on return of acquisition purchase price	(3,400		)	—
Changes in operating assets and liabilities:
Trade accounts receivable, net	8,203			7,063
Inventories, net	(311		)	6,592
Prepaid expenses and other assets	160			(2,422		)
Accounts payable, accrued expenses and other liabilities	(15,292		)	(15,504		)
Net cash provided by operating activities	72,206			60,523
INVESTING ACTIVITIES
Additions to property, plant and equipment	(17,328		)	(18,170		)
Proceeds from the sale of property, plant and equipment	664			541
Business acquisitions, return of purchase price	3,400			—
Net cash used in investing activities	(13,264		)	(17,629		)
FINANCING ACTIVITIES
Proceeds from long-term debt	146,578			186,409
Payments of long-term debt	(166,239		)	(220,918		)
Dividends paid	(2,700		)	(2,663		)
Proceeds from the exercise of stock options	2,394			406
Tax effect of share-based compensation	732			(642		)
Net cash used in financing activities	(19,235		)	(37,408		)
Effect of exchange rate changes on cash and cash equivalents	735			1,397
INCREASE IN CASH AND CASH EQUIVALENTS	40,445			6,883
Cash and cash equivalents at beginning of year	61,738			54,855
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	102,183		$	61,738
Cash paid during the year for:
Income taxes	$	8,143		$	16,699
Interest	$	3,254		$	3,140


CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
UNAUDITED

	December 31, 2013		December 31, 2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	102,180	$	61,738
Short-term investments	95		101
Trade accounts receivable, less allowance for doubtful accounts of $2,449 and $1,706, respectively	144,742		150,825
Inventories, net	199,404		198,005
Prepaid expenses and other current assets	19,815		17,052
Deferred income tax asset	17,686		15,505
Total Current Assets	483,922		443,226
PROPERTY, PLANT AND EQUIPMENT, NET	107,724		105,903
OTHER ASSETS:
Goodwill	75,876		77,428
Intangibles, net	35,656		45,157
Deferred income tax asset	18,579		30,064
Other assets	4,893		8,203
TOTAL ASSETS	$	726,650	$	709,981
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	70,589	$	80,361
Accrued expenses and other current liabilities	57,507		67,235
Accrued compensation and benefits	31,289		26,540
Income taxes payable	3,965		393
Notes payable and current portion of long-term debt	7,203		7,755
Total Current Liabilities	170,553		182,284
LONG-TERM DEBT, NET OF CURRENT PORTION	42,435		62,729
DEFERRED INCOME TAXES	9,666		10,744
OTHER NON-CURRENT LIABILITIES	27,109		35,977
CONTINGENCIES AND COMMITMENTS
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding	—		—
Common stock, $0.01 par value; 29,000,000 shares authorized; 17,610,526 and 17,445,687 shares issued and outstanding at December 31, 2013 and 2012, respectively	176		174
Additional paid-in capital	269,885		262,744
Retained earnings	202,930		158,509
Accumulated other comprehensive gain (loss), net of taxes	3,896		(3,180		)
Total Shareholders’ Equity	476,887		418,247
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	726,650	$	709,981


CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in millions)
UNAUDITED

	Three Months Ended				Twelve Months Ended
	December 31, 2013		December 31, 2012		December 31, 2013		December 31, 2012
ORDERS (1)
Energy	$	187.4	$	156.6	$	691.7	$	714.2
Aerospace & Defense	43.7		45.7		189.6		189.6
Total orders	$	231.1	$	202.3	$	881.3	$	903.8

BACKLOG (2)	December 31, 2013		December 31, 2012
Energy	$	288.7	$	266.0
Aerospace & Defense	173.9		181.1
Total backlog	$	462.6	$	447.1

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 all unshipped customer orders.


CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share)
UNAUDITED


	2012															2013
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL
NET REVENUES
Energy	$	164,885		$	171,386		$	166,918		$	156,193		$	659,382		$	157,104		$	173,557		$	167,660		$	162,649		$	660,970
Aerospace & Defense	49,395			48,476			42,886			45,413			186,170			48,294			50,087			47,071			51,386			196,838
Total	$	214,280		$	219,862		$	209,804		$	201,606		$	845,552		$	205,398		$	223,644		$	214,731		$	214,035		$	857,808
ADJUSTED OPERATING MARGIN
Energy	8.7		%	10.8		%	12.9		%	11.9		%	11.1		%	10.8		%	13.3		%	15.2		%	17.1		%	14.1		%
Aerospace & Defense	11.5		%	11.7		%	7.1		%	5.1		%	9.0		%	5.9		%	11.4		%	12.1		%	8.4		%	9.5		%
Segment operating margin	9.3		%	11.0		%	11.7		%	10.4		%	10.6		%	9.6		%	12.9		%	14.5		%	15.0		%	13.0		%
Corporate expenses	(2.9		)%	(2.6		)%	(2.9		)%	(2.6		)%	(2.8		)%	(2.6		)%	(2.9		)%	(3.4		)%	(3.5		)%	(3.1		)%
Adjusted operating margin	6.4		%	8.4		%	8.8		%	7.8		%	7.8		%	7.1		%	10.0		%	11.1		%	11.6		%	9.9		%
Restructuring inventory charges	—		%	—		%	2.0		%	—		%	0.5		%	0.1		%	(0.1		)%	—		%	0.3		%	0.1		%
Impairment charges	—		%	—		%	4.9		%	—		%	1.2		%	—		%	—		%	—		%	3.2		%	0.8		%
Special (recoveries)	—		%	—		%	—		%	—		%	—		%	—		%	—		%	(1.5		)%	—		%	(0.4		)%
Special charges	—		%	—		%	0.7		%	1.9		%	0.6		%	0.7		%	1.0		%	1.4		%	2.4		%	1.4		%
Total GAAP operating margin	6.4		%	8.4		%	1.3		%	5.8		%	5.5		%	6.3		%	9.1		%	11.1		%	5.6		%	8.1		%



	2012															2013
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL
ADJUSTED OPERATING INCOME
Energy	$	14,282		$	18,445		$	21,575		$	18,591		$	72,893		$	16,940		$	23,114		$	25,441		$	27,809		$	93,304
Aerospace & Defense	5,672			5,671			3,026			2,332			16,701			2,864			5,724			5,705			4,342			18,635
Segment operating income	19,954			24,116			24,601			20,923			89,594			19,804			28,838			31,146			32,151			111,939
Corporate expenses	(6,254		)	(5,637		)	(6,096		)	(5,286		)	(23,272		)	(5,277		)	(6,570		)	(7,400		)	(7,400		)	(26,646		)
Adjusted operating income	13,700			18,479			18,505			15,637			66,322			14,528			22,268			23,746			24,751			85,293
Restructuring inventory charges	—			—			4,124			37			4,161			250			(242		)	—			638			646
Impairment charges	—			—			10,348			—			10,348			—			—			—			6,872			6,872
Special (recoveries)	—			—			—			—			—			—			—			(3,151		)	—			(3,151		)
Special charges	—			—			1,377			3,905			5,282			1,378			2,254			2,961			5,160			11,752
Total GAAP operating income	13,700			18,479			2,656			11,695			46,531			12,900			20,256			23,936			12,081			69,174
INTEREST EXPENSE, NET	(1,081		)	(1,017		)	(1,122		)	(1,038		)	(4,259		)	(787		)	(838		)	(745		)	(792		)	(3,162		)
OTHER EXPENSE, NET	(138		)	(184		)	(564		)	373			(513		)	(612		)	(626		)	(568		)	(167		)	(1,974		)
PRETAX INCOME	12,481			17,278			970			11,030			41,759			11,501			18,792			22,623			11,122			64,038
(PROVISION) BENEFIT FOR INCOME TAXES	(3,896		)	(6,142		)	899			(1,822		)	(10,960		)	(3,592		)	(6,124		)	(4,903		)	(2,297		)	(16,916		)
EFFECTIVE TAX RATE	31.2		%	35.5		%	(92.8		)%	16.5		%	26.2		%	31.2		%	32.6		%	21.7		%	20.7		%	26.4		%
NET INCOME	$	8,585		$	11,136		$	1,869		$	9,208		$	30,799		$	7,908		$	12,668		$	17,720		$	8,825		$	47,121
Weighted Average Common Shares Outstanding (Diluted)	17,390			17,451			17,467			17,499			17,452			17,529			17,607			17,667			17,710			17,629
EARNINGS PER COMMON SHARE (Diluted)	$	0.49		$	0.64		$	0.11		$	0.53		$	1.76		$	0.45		$	0.72		$	1.00		$	0.50		$	2.67
ADJUSTED EBITDA	$	18,534		$	23,043		$	22,809		$	20,750		$	85,136		$	18,682		$	26,419		$	27,850		$	29,441		$	102,392
ADJUSTED EBITDA AS A % OF SALES	8.6		%	10.5		%	10.9		%	10.3		%	10.1		%	9.1		%	11.8		%	13.0		%	13.8		%	11.9		%
CAPITAL EXPENDITURES	$	4,122		$	6,661		$	3,314		$	4,073		$	18,170		$	4,707		$	4,100		$	4,772		$	3,749		$	17,328


CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands, except earnings per share)
UNAUDITED

	2012															2013
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL
FREE CASH FLOW	$	(7,089	)	$	5,077		$	18,746		$	25,619		$	42,353		$	1,100		$	9,525		$	29,557		$	14,696		$	54,878
ADD:
Capital Expenditures	4,122			6,661			3,314			4,073			18,170			4,707			4,100			4,772			3,749			17,328
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(2,967	)	$	11,738		$	22,060		$	29,692		$	60,523		$	5,807		$	13,625		$	34,329		$	18,445		$	72,206
NET DEBT (CASH)	$	57,263		$	54,376		$	34,706		$	8,645		$	8,645		$	8,814		$	(1,376	)	$	(36,466	)	$	(52,637	)	$	(52,637	)
ADD:
Cash & Cash Equivalents	41,291			41,414			48,976			61,738			61,738			57,633			60,831			86,285			102,180			102,180
Investments	101			98			102			101			101			99			96			98			95			95
TOTAL DEBT	$	98,655		$	95,888		$	83,784		$	70,484		$	70,484		$	66,546		$	59,551		$	49,917		$	49,638		$	49,638
DEBT AS % OF EQUITY	25		%	24		%	20		%	17		%	17		%	16		%	14		%	11		%	10		%	10		%
TOTAL DEBT	98,655			95,888			83,784			70,484			70,484			66,546			59,551			49,917			49,638			49,638
TOTAL SHAREHOLDERS' EQUITY	399,018			397,957			409,016			418,247			418,247			418,819			432,151			459,058			476,887			476,887


	2012															2013
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL
ADJUSTED OPERATING INCOME	$	13,700		$	18,479		$	18,505		$	15,637		$	66,322		$	14,528		$	22,268		$	23,746		$	24,751		$	85,293
LESS:
Inventory restructuring charges	—			—			4,124			37			4,161			250			(242		)	—			638			646
Impairment charges	—			—			10,348			—			10,348			—			—			—			6,872			6,872
Special (recoveries)	—			—			—			—			—			—			—			(3,151		)	—			(3,151		)
Special charges	—			—			1,377			3,905			5,282			1,378			2,254			2,961			5,160			11,753
OPERATING INCOME	$	13,700		$	18,479		$	2,656		$	11,695		$	46,531		$	12,900		$	20,256		$	23,936		$	12,081		$	69,173
ADJUSTED NET INCOME	$	8,585		$	11,136		$	12,171		$	11,770		$	43,663		$	9,043		$	14,044		$	16,439		$	16,773		$	56,299
LESS:
Inventory restructuring charges, net of tax	—			—			2,681			24			2,705			174			(165		)	—			396			405
Impairment charges, net of tax	—			—			6,726			—			6,726			—			—			—			4,261			4,261
Special (recoveries), net of tax	—			—			—			—			—			—			—			(3,151		)	—			(3,151		)
Special charges, net of tax	—			—			895			2,538			3,433			961			1,541			1,870			3,291			7,663
NET INCOME	$	8,585		$	11,136		$	1,869		$	9,208		$	30,799		$	7,908		$	12,668		$	17,720		$	8,825		$	47,121
ADJUSTED EARNINGS PER SHARE	$	0.49		$	0.64		$	0.77		$	0.69		$	2.59		$	0.52		$	0.81		$	0.93		$	0.95		$	3.21
LESS:
Inventory restructuring charges, net of tax	—			—			0.17			—			0.17			0.01			(0.01		)	—			0.02			0.02
Impairment charges, net of tax	—			—			0.43			—			0.43			—			—			—			0.24			0.24
Special (recoveries), net of tax	—			—			—			—			—			—			—			(0.18		)	—			(0.18		)
Special charges, net of tax	—			—			0.06			0.16			0.22			0.06			0.10			0.11			0.19			0.46
EARNINGS PER COMMON SHARE (Diluted)	$	0.49		$	0.64		$	0.11		$	0.53		$	1.76		$	0.45		$	0.72		$	1.00		$	0.50		$	2.67


	2012															2013
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL
EBITDA	$	18,534		$	23,043		$	6,960		$	16,808		$	65,345		$	17,054		$	24,407		$	23,368		$	11,914		$	86,272
LESS:
Interest expense, net	(1,081		)	(1,017		)	(1,122		)	(1,038		)	(4,258		)	(787		)	(838		)	(745		)	(792		)	(3,162		)
Depreciation	(4,008		)	(3,825		)	(3,932		)	(3,967		)	(15,732		)	(4,009		)	(4,026		)	(3,908		)	(4,091		)	(16,034		)
Amortization	(964		)	(923		)	(936		)	(773		)	(3,596		)	(758		)	(751		)	(764		)	(766		)	(3,039		)
(Provision) benefit for income taxes	(3,896		)	(6,142		)	899			(1,822		)	(10,960		)	(3,592		)	(6,124		)	(4,903		)	(2,297		)	(16,916		)
NET INCOME	$	8,585		$	11,136		$	1,869		$	9,208		$	30,799		$	7,908		$	12,668		$	17,720		$	8,825		$	47,121
ADJUSTED EBITDA	$	18,534		$	23,043		$	22,809		$	20,750		$	85,136		$	18,682		$	26,419		$	27,850		$	29,441		$	102,392
Inventory restructuring charges	—			—			(4,124		)	(37		)	(4,161		)	(250		)	242			—			(638		)	(646		)
Impairment charges	—			—			(10,348		)	—			(10,348		)	—			—			—			(6,872		)	(6,872		)
Special (recoveries)	—			—			—			—			—			—			—			3,151			—			3,151
Special charges	—			—			(1,377		)	(3,905		)	(5,282		)	(1,378		)	(2,254		)	(2,961		)	(5,160		)	(11,753		)
Interest expense, net	(1,081		)	(1,017		)	(1,122		)	(1,038		)	(4,258		)	(787		)	(838		)	(745		)	(792		)	(3,162		)
Depreciation	(4,008		)	(3,825		)	(3,932		)	(3,967		)	(15,732		)	(4,009		)	(4,026		)	(3,908		)	(4,091		)	(16,034		)
Amortization	(964		)	(923		)	(936		)	(773		)	(3,596		)	(758		)	(751		)	(764		)	(766		)	(3,039		)
(Provision) / benefit for income taxes	(3,896		)	(6,142		)	899			(1,822		)	(10,960		)	(3,592		)	(6,124		)	(4,903		)	(2,297		)	(16,916		)
NET INCOME	$	8,585		$	11,136		$	1,869		$	9,208		$	30,799		$	7,908		$	12,668		$	17,720		$	8,825		$	47,121


CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY
USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
UNAUDITED

	1st Quarter 2014
	Low		High
REVENUE (in millions)	$	200	$	210

EXPECTED ADJUSTED EARNINGS PER SHARE (DILUTIVE)	$	0.68	$	0.73
LESS: Restructuring related charges, Impairment charges, Special charges	$	0.07	$	0.06
PLUS: Special gain on legal settlement	$	0.09	$	0.09
EXPECTED EARNINGS PER COMMON SHARE (Diluted)	$	0.70	$	0.76

Note: Assumes 29% tax rate and exchange rates at present values.

Source: CIRCOR International, Inc.

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

News Release

CIRCOR Reports Fourth-Quarter and Year-End 2013 Financial Results