News Release

BURLINGTON, Mass.--(BUSINESS WIRE)--Aug. 1, 2013-- CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for markets including oil & gas, power generation and aerospace, today announced financial results for the second quarter ended June 30, 2013.

Second Quarter 2013 Highlights

• Adjusted operating margin up 160 basis points to 10%, highest in four years
• Adjusted EPS of $0.81 increased 27%
• Organic revenue growth of 2%
• Secured large specialty high pressure ball valve order for emerging FPSO technology
• Completed previously announced restructuring – on track to deliver annualized savings of $7 million
• Announced first step of CIRCOR simplification process

Management Comments

“We delivered a strong quarter due to our continued focus on growth, margin expansion and cash generation,” said Scott Buckhout, CIRCOR’s President and Chief Executive Officer. “Revenue increased sequentially in all three segments, while our adjusted operating margin expanded to 10% -- our highest level in four years.

“Our strategy to drive growth in the most innovative parts of our markets is delivering results. During the second quarter, we won a large order for high pressure ball valves to be used for emerging floating production, storage and off-loading technology.

“We are also pleased to have completed our previously announced restructuring initiatives on time and under budget. Through these projects, we delivered more than $1 million of savings in the second quarter and are on pace to deliver the $7 million of annualized savings that we had projected.”

Added Buckhout, “Today we are announcing the first step of a new initiative to simplify CIRCOR, thereby reducing costs, growing margins and enhancing shareholder value. We are implementing three new restructuring actions designed to further reduce complexity and cost. This includes closing two facilities and downsizing another, reducing our overhead, eliminating legacy ERP systems, and increasing the utilization of our low cost manufacturing and design capabilities in India. We expect these actions will result in annualized savings of approximately $4 million.”

Second Quarter Results

Revenues for the second quarter of 2013 increased 2% to $223.6 million, from $219.9 million in the second quarter of 2012. Net income for the second quarter of 2013, including the impact of special charges of $2.0 million, was $12.7 million, or $0.72 per diluted share, compared with net income of $11.1 million, or $0.64 per diluted share, for the second quarter of 2012. Adjusted earnings per diluted share in the second quarter of 2013, excluding the impact of the special charges, was $0.81, a 27% increase compared with $0.64 in the prior year’s second-quarter.

The Company received orders totaling $200.1 million during the second quarter of 2013, a decrease of 12% compared with the second quarter of 2012, due primarily to lower Energy orders in the international project business. The Energy business experienced a particularly difficult comparison with last year when CIRCOR booked a $22 million order in the large project business. Backlog as of June 30, 2013 increased 3% to $433.5 million from June 30, 2012.

During the second quarter of 2013, the Company generated $9.5 million of free cash flow, up $4.4 million from the same period in 2012.

Third Quarter Guidance

For the third quarter of 2013, the Company expects revenues to be in the range of $212 to $218 million. In addition, CIRCOR expects to record special charges comprised of a gain of approximately $3.1 million related to a settlement on the Brazil arbitration and restructuring related-charges of between $1.5 and $1.7 million. Excluding these charges, adjusted earnings are expected to be in the range of $0.76 to $0.83 per diluted share in the third quarter of 2013.

Segment Results

Energy

Energy segment revenues decreased 2% to $110.8 million for the second quarter versus the same period in 2012.

For the second quarter of 2013, the Energy segment’s adjusted operating margin increased 270 basis points to 13.8% year over year.

Incoming orders for the second quarter of 2013 were $107.2 million, a decrease of 16% year over year, as a result of lower large international project bookings. While the level of large international project inquiries and quoting remains comparable to 2012, the time to finalize orders from the original quotes has been increasing. This is likely the result of projects being delayed. In addition, the comparison with the second quarter of 2012 was difficult due to a $22 million project received in that quarter. Ending backlog totaled $213.7 million, an increase of 8% year over year.

Flow Technologies

Flow Technologies segment revenues increased 6% to $74.6 million for the second quarter of 2013.

Flow Technologies adjusted operating margin for the second quarter of 2013 increased 200 basis points to 14.8%.

Incoming orders for the Flow Technologies segment were $66.0 million for the second quarter of 2013, a decrease of 6% year over year. Ending backlog totaled $67.9 million, a decrease of 9% compared with the same period last year.

Aerospace

Aerospace segment revenues increased 6% to $38.2 million for the second quarter.

Aerospace segment adjusted operating margin for the second quarter of 2013 decreased slightly to 8.6% from 8.8% in the second quarter of 2012. Segment margins were up 510 basis points sequentially as the benefits of the restructuring program started to impact the business.

Incoming orders for the second quarter of 2013 were $26.9 million, a decrease of 6% year over year. Ending backlog totaled $151.9 million, an increase of 1% year over year.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, August 1, 2013, at 10:00 a.m. ET. Those who wish to listen to the conference call and view the accompanying presentation slides should 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. Free cash flow is defined as net cash from operating activities less capital expenditures. 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 third-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 valves and other highly engineered products for markets including energy, oil & gas, power generation and aerospace. With more than 7,500 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands. CIRCOR’s culture, built on the CIRCOR Business System, is defined by the Company’s commitment to attracting, developing and retaining the best talent and pursuing continuous improvement in all aspects of its business and operations. The Company’s strategy includes growing organically by investing in new, differentiated products; adding value to component products; and increasing the development of mission-critical subsystems and solutions. CIRCOR also plans to leverage its strong balance sheet to acquire strategically complementary businesses. 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								Six Months Ended
		June 30, 2013				July 1, 2012				June 30, 2013				July 1, 2012
Net revenues		$	223,644			$	219,862			$	429,042			$	434,142
Cost of revenues		153,538				156,046				299,086				311,714
GROSS PROFIT		70,106				63,816				129,956				122,428
Selling, general and administrative expenses		47,596				45,337				93,168				90,249
Special charges		2,254				—				3,632				—
OPERATING INCOME		20,256				18,479				33,156				32,179
Other (income) expense:
Interest income		(79		)		(78		)		(122		)		(161		)
Interest expense		917				1,095				1,747				2,259
Other, net		626				184				1,239				322
TOTAL OTHER EXPENSE		1,464				1,201				2,864				2,420
INCOME BEFORE INCOME TAXES		18,792				17,278				30,292				29,759
Provision for income taxes		6,124				6,142				9,715				10,038
NET INCOME		$	12,668			$	11,136			$	20,577			$	19,721
Earnings per common share:
Basic		$	0.72			$	0.64			$	1.17			$	1.14
Diluted		$	0.72			$	0.64			$	1.17			$	1.13
Weighted average number of common shares outstanding:
Basic		17,565				17,422				17,539				17,369
Diluted		17,607				17,451				17,569				17,421

CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (UNAUDITED)
		Six Months Ended
		June 30, 2013				July 1, 2012
OPERATING ACTIVITIES
Net income		$	20,577			$	19,721
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		8,035				7,833
Amortization		1,509				1,887
Payment for Leslie bankruptcy settlement		—				(1,000		)
Compensation expense of share-based plans		2,156				2,317
Tax effect of share-based compensation		(422		)		499
(Gain) loss on property, plant and equipment		(129		)		133
Changes in operating assets and liabilities, net of effects from business acquisitions:
Trade accounts receivable		(9,406		)		(6,312		)
Inventories		(4,059		)		(5,340		)
Prepaid expenses and other assets		(2,412		)		(1,408		)
Accounts payable, accrued expenses and other liabilities		3,583				(9,559		)
Net cash provided by operating activities		19,432				8,771
INVESTING ACTIVITIES
Additions to property, plant and equipment		(8,808		)		(10,783		)
Proceeds from the sale of property, plant and equipment		314				31
Net cash used in investing activities		(8,494		)		(10,752		)
FINANCING ACTIVITIES
Proceeds from long-term debt		74,255				108,943
Payments of long-term debt		(84,679		)		(117,944		)
Dividends paid		(1,340		)		(1,331		)
Proceeds from the exercise of stock options		1,498				94
Tax effect of share-based compensation		422				(499		)
Net cash used in financing activities		(9,844		)		(10,737		)
Effect of exchange rate changes on cash and cash equivalents		(2,002		)		(723		)
DECREASE IN CASH AND CASH EQUIVALENTS		(907		)		(13,441		)
Cash and cash equivalents at beginning of period		61,738				54,855
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	60,831			$	41,414

CIRCOR INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (UNAUDITED)
		June 30, 2013				December 31, 2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	60,831			$	61,738
Short-term investments		96				101
Trade accounts receivable, less allowance for doubtful accounts		158,286				150,825
Inventories		199,764				198,005
Prepaid expenses and other current assets		17,661				16,510
Deferred income tax asset		15,431				15,505
Current income tax receivable		2,171				—
Assets held for sale		542				542
Total Current Assets		454,782				443,226
PROPERTY, PLANT AND EQUIPMENT, NET		104,477				105,903
OTHER ASSETS:
Goodwill		75,491				77,428
Intangibles, net		42,436				45,157
Deferred income tax asset		25,283				30,064
Other assets		6,957				8,203
TOTAL ASSETS		$	709,426			$	709,981
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	84,245			$	80,361
Accrued expenses and other current liabilities		59,240				67,235
Accrued compensation and benefits		25,596				26,540
Income taxes payable		3,996				393
Notes payable and current portion of long-term debt		7,206				7,755
Total Current Liabilities		180,283				182,284
LONG-TERM DEBT, NET OF CURRENT PORTION		52,345				62,729
DEFERRED INCOME TAXES		9,797				10,744
OTHER NON-CURRENT LIABILITIES		34,850				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; 17,575,362 and 17,445,687 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively		176				174
Additional paid-in capital		265,940				262,744
Retained earnings		177,748				158,509
Accumulated other comprehensive loss, net of taxes		(11,713		)		(3,180		)
Total Shareholders’ Equity		432,151				418,247
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	709,426			$	709,981

CIRCOR INTERNATIONAL, INC. SUMMARY OF ORDERS AND BACKLOG (in millions) (UNAUDITED)
		Three Months Ended								Six Months Ended
		June 30, 2013				July 1, 2012				June 30, 2013				July 1, 2012
ORDERS (1)
Energy		$	107.2			$	128.2			$	217.4			$	263.9
Aerospace		26.9				28.5				69.1				68.7
Flow Technologies		66.0				70.5				140.4				143.4
Total orders		$	200.1			$	227.2			$	426.9			$	476.0
BACKLOG (2)		June 30, 2013				July 1, 2012
Energy		$	213.7			$	197.4
Aerospace		151.9				150.6
Flow Technologies		67.9				74.3
Total backlog		$	433.5			$	422.3

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 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				TOTAL
NET REVENUES
Energy		$	109,264			$	113,527			$	109,968			$	96,582			$	429,341			$	96,722			$	110,832			$	207,554
Aerospace		38,085				35,896				31,795				35,316				141,092				37,326				38,177				75,503
Flow Technologies		66,931				70,439				68,041				69,707				275,119				71,350				74,635				145,985
Total		214,280				219,862				209,804				201,605				845,552				205,398				223,644				429,042
* ADJUSTED OPERATING MARGIN
Energy		8.2		%		11.1		%		14.0		%		12.5		%		11.4		%		11.1		%		13.8		%		12.5		%
Aerospace		10.8		%		8.8		%		4.2		%		3.5		%		7.0		%		3.5		%		8.6		%		6.1		%
Flow Technologies		11.3		%		12.8		%		13.1		%		13.1		%		12.6		%		12.7		%		14.8		%		13.8		%
Segment operating margin		9.6		%		11.3		%		12.2		%		11.1		%		11.1		%		10.3		%		13.2		%		11.8		%
Corporate expenses		(3.2		)%		(2.9		)%		(3.4		)%		(3.4		)%		(3.2		)%		(3.2		)%		(3.3		)%		(3.2		)%
* Adjusted operating margin		6.4		%		8.4		%		8.8		%		7.8		%		7.8		%		7.1		%		10.0		%		8.6		%
Restructuring inventory charges		0.0		%		0.0		%		2.0		%		0.0		%		0.5		%		0.1		%		(0.1		)%		0.0		%
Impairment charges		0.0		%		0.0		%		4.9		%		0.0		%		1.2		%		0.0		%		0.0		%		0.0		%
Special charges		0.0		%		0.0		%		0.7		%		1.9		%		0.6		%		0.7		%		1.0		%		0.8		%
Total operating margin		6.4		%		8.4		%		1.3		%		5.8		%		5.5		%		6.3		%		9.1		%		7.7		%
		2012																				2013
		1ST QTR				2ND QTR				3RD QTR				4TH QTR				TOTAL				1ST QTR				2ND QTR				TOTAL
* ADJUSTED OPERATING INCOME
Energy		8,928				12,580				15,432				12,100				49,040				10,751				15,271				26,022
Aerospace		4,124				3,153				1,324				1,234				9,835				1,320				3,271				4,591
Flow Technologies		7,587				9,043				8,919				9,105				34,654				9,044				11,065				20,109
Segment operating income		20,639				24,776				25,675				22,439				93,529				21,115				29,607				50,722
Corporate expenses		(6,939		)		(6,297		)		(7,170		)		(6,802		)		(27,207		)		(6,588		)		(7,339		)		(13,926		)
* Adjusted operating income		13,700				18,479				18,505				15,637				66,322				14,528				22,268				36,796
Restructuring inventory charges		—				—				4,124				37				4,161				250				(242		)		8
Impairment charges		—				—				10,348				—				10,348				—								—
Special charges		—				—				1,377				3,905				5,282				1,378				2,254				3,632
Total operating income		13,700				18,479				2,656				11,695				46,531				12,900				20,256				33,156
INTEREST EXPENSE, NET		(1,081		)		(1,017		)		(1,122		)		(1,038		)		(4,258		)		(787		)		(838		)		(1,625		)
OTHER EXPENSE, NET		(138		)		(184		)		(564		)		373				(514		)		(612		)		(626		)		(1,239		)
PRETAX INCOME		12,481				17,278				970				11,030				41,759				11,501				18,792				30,293
(PROVISION) BENEFIT FOR INCOME TAXES		(3,896		)		(6,142		)		899				(1,822		)		(10,960		)		(3,592		)		(6,124		)		(9,715		)
EFFECTIVE TAX RATE		31.2		%		35.5		%		(92.8		)%		16.5		%		26.2		%		31.2		%		32.6		%		32.1		%
NET INCOME		$	8,585			$	11,136			$	1,869			$	9,208			$	30,799			$	7,908			$	12,668			$	20,577
Weighted Average Common Shares Outstanding (Diluted)		17,390				17,451				17,467				17,499				17,452				17,529				17,607				17,569
EARNINGS PER COMMON SHARE (Diluted)		$	0.49			$	0.64			$	0.11			$	0.53			$	1.76			$	0.45			$	0.72			$	1.17
ADJUSTED EBITDA		$	18,534			$	23,043			$	22,809			$	16,808			$	81,194			$	18,682			$	26,419			$	45,101
ADJUSTED EBITDA AS A % OF SALES		8.6		%		10.5		%		10.9		%		8.3		%		9.6		%		9.1		%		11.8		%		10.5		%
CAPITAL EXPENDITURES		$	4,122			$	6,661			$	3,314			$	4,073			$	18,170			$	4,707			$	4,100			$	8,807
* Adjusted Operating Income & Margin exclude inventory restructuring, impairment and special charges.

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		TOTAL
FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES]		$(7,089)		$5,077		$18,746		$25,619		$42,353		$1,100		$9,525		$10,625
ADD:
Capital Expenditures		4,122		6,661		3,314		4,073		18,170		4,707		4,100		8,807
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES		$(2,967)		$11,738		$22,060		$29,692		$60,523		$5,807		$13,625		$19,432
NET DEBT [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS]		$57,263		$54,376		$34,706		$8,645		$8,645		$8,814		$(1,376)		$(1,376)
ADD:
Cash & Cash Equivalents		41,291		41,414		48,976		61,738		61,738		57,633		60,831		60,831
Investments		101		98		102		101		101		99		96		96
TOTAL DEBT		$98,655		$95,888		$83,784		$70,484		$70,484		$66,546		$59,551		$59,551
DEBT AS % OF EQUITY		25%		24%		20%		17%		17%		16%		14%		14%
TOTAL DEBT		98,655		95,888		83,784		70,484		70,484		66,546		59,551		59,551
TOTAL SHAREHOLDERS' EQUITY		399,018		397,957		409,016		418,247		418,247		418,819		432,151		432,151
EBIT [NET INCOME LESS INCOME TAXES LESS INTEREST EXPENSE, NET]		$13,562		$18,295		$2,092		$12,068		$46,017		$12,287		$19,630		$31,917
LESS:
Interest expense, net		(1,081)		(1,017)		(1,122)		(1,038)		(4,258)		(787)		(838)		(1,625)
(Provision) benefit for income taxes		(3,896)		(6,142)		899		(1,822)		(10,960)		(3,592)		(6,124)		(9,715)
NET INCOME		$8,585		$11,136		$1,869		$9,208		$30,799		$7,908		$12,668		$20,577
		2012										2013
		1ST QTR		2ND QTR		3RD QTR		4TH QTR		TOTAL		1ST QTR		2ND QTR		TOTAL
ADJUSTED OPERATING INCOME [OPERATING INCOME EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES]		$13,700		$18,479		$18,505		$15,600		$66,322		$14,528		$22,268		$36,796
LESS:
Inventory restructuring charges		—		—		4,124		37		4,161		250		(242)		8
Impairment charges		—		—		10,348		—		10,348		—				—
Special charges		—		—		1,377		3,905		5,282		1,378		2,254		3,632
OPERATING INCOME		$13,700		$18,479		$2,656		$11,695		$46,531		$12,900		$20,256		$33,156
ADJUSTED NET INCOME [NET INCOME EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES, NET OF TAX]		$8,585		$11,136		$12,171		$11,770		$43,663		$9,043		$14,044		$23,088
LESS:
Inventory restructuring charges, net of tax		—		—		2,681		24		2,705		174		(165)		9
Impairment charges, net of tax		—		—		6,726		—		6,726		—		—		—
Special charges, net of tax		—		—		895		2,538		3,433		961		1,541		2,502
NET INCOME		$8,585		$11,136		$1,869		$9,208		$30,799		$7,908		$12,668		$20,577
ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES, NET OF TAX]		$0.49		$0.64		$0.77		$0.69		$2.59		$0.52		$0.81		$1.33
LESS:
Inventory restructuring charges, net of tax		$—		$—		$0.17		$—		$0.17		$0.01		$(0.01)		$—
Impairment charges, net of tax		$—		$—		$0.43		$—		$0.43		$—		$—		$—
Special charges, net of tax		$—		$—		$0.06		$0.16		$0.22		$0.06		$0.10		$0.16
EARNINGS PER COMMON SHARE (Diluted)		$0.49		$0.64		$0.11		$0.53		$1.76		$0.45		$0.72		$1.17
		2012										2013
		1ST QTR		2ND QTR		3RD QTR		4TH QTR		TOTAL		1ST QTR		2ND QTR		TOTAL
EBITDA [NET INCOME LESS NET INTEREST EXPENSE, DEPRECIATION, AMORTIZATION AND INCOME TAXES]		$18,534		$23,043		$2,092		$12,068		$65,345		$17,054		$24,407		$41,461
LESS:
Interest expense, net		(1,081)		(1,017)		(1,122)		(1,038)		(4,258)		(787)		(838)		(1,625)
Depreciation		(4,008)		(3,825)		(3,932)		(3,967)		(15,732)		(4,009)		(4,026)		(8,035)
Amortization		(964)		(923)		(936)		(773)		(3,596)		(758)		(751)		(1,509)
(Provision) benefit for income taxes		(3,896)		(6,142)		899		(1,822)		(10,960)		(3,592)		(6,124)		(9,715)
NET INCOME		$8,585		$11,136		$1,869		$9,208		$30,799		$7,908		$12,668		$20,577
ADJUSTED EBITDA [NET INCOME EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES, NET INTEREST EXPENSE, DEPRECIATION, AMORTIZATION AND INCOME TAXES]		$18,534		$23,043		$22,809		$20,750		$85,136		$18,682		$26,419		$45,101
Inventory restructuring charges		$—		$—		$(4,124)		$(37)		$(4,161)		$(250)		$242		$(8)
Impairment charges		$—		$—		$(10,348)		$—		$(10,348)		$—		$—		$—
Special charges		$—		$—		$(1,377)		$(3,905)		$(5,282)		$(1,378)		$(2,254)		$(3,632)
Interest expense, net		$(1,081)		$(1,017)		$(1,122)		$(1,038)		$(4,258)		$(787)		$(838)		$(1,625)
Depreciation		$(4,008)		$(3,825)		$(3,932)		$(3,967)		$(15,732)		$(4,009)		$(4,026)		$(8,035)
Amortization		$(964)		$(923)		$(936)		$(773)		$(3,596)		$(758)		$(751)		$(1,509)
(Provision) benefit for income taxes		$(3,896)		$(6,142)		$899		$(1,822)		$(10,960)		$(3,592)		$(6,124)		$(9,715)
NET INCOME		$8,585		$11,136		$1,869		$9,208		$30,799		$7,908		$12,668		$20,577

CIRCOR INTERNATIONAL, INC. RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (UNAUDITED)
				3rd Quarter 2013
				Low				High
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES, NET OF TAX]				$	0.76			$	0.83
LESS: RESTRUCTURING RELATED CHARGES [INVENTORY RESTRUCTURING CHARGES, IMPAIRMENT CHARGES, SPECIAL CHARGES, NET OF TAX]				$	(0.06	)		$	(0.07	)
PLUS: Acquisition Arbitration Settlement				$	0.18			$	0.18
EXPECTED EARNINGS PER COMMON SHARE (Diluted)				$	0.88			$	0.94

Source: CIRCOR International, Inc.

CIRCOR International
Frederic M. Burditt, 781-270-1200
Chief Financial Officer