CIRCOR Reports Third-Quarter 2013 Financial Results
Third Quarter 2013 Highlights
- Adjusted operating margin increased 230 basis points to 11.1%
-
Adjusted EPS grew 22% to
$0.93 - Revenue growth was 2%
-
Free Cash Flow was
$30 million ; YTD free cash flow at 105% of net income - Flow Technologies segment reported record bookings, up 22% year-over-year
-
Restructuring initiatives to simplify
CIRCOR on schedule -
Announcing next step of the
CIRCOR simplification process
Management Comments
“Q3 was a strong quarter resulting from our ongoing focus on growth,
margin expansion, and cash generation,” said
“Free cash flow was strong in the quarter as a result of improved margins and working capital performance. Year-to-date free cash flow exceeded net income.
“The restructuring actions we announced last quarter are on schedule and
expected to deliver the projected annual savings of approximately
“In addition, we recently updated our 5-year strategic plan. Based on
that work we are changing our organizational structure to simplify the
way we manage
“Finally, we intend to move to two reporting segments during the fourth
quarter consistent with the new management structure at
“In conjunction with these changes,
Consolidated Results
Revenues for the third quarter of 2013 increased 2% to
The Company received orders totaling
During the third quarter of 2013, the Company generated
Fourth-Quarter Guidance
For the fourth quarter of 2013, the Company expects revenues to be in
the range of
Segment Results
Energy
Energy segment revenues decreased 1% to
The Energy segment’s adjusted operating margin increased 310 basis points to 17.1% year over year.
Incoming orders for the third quarter of 2013 were
Flow Technologies
Flow Technologies segment revenues increased 3% to
Flow Technologies adjusted operating margin for the third quarter of 2013 increased 50 basis points to 13.6%.
Incoming orders for the Flow Technologies segment were
Aerospace
Aerospace segment revenues increased 15% to
Aerospace segment adjusted operating margin for the third quarter of 2013 increased 710 basis points to 11.3% from 4.2% in the third quarter of 2012.
Incoming orders for the third quarter of 2013 were
Conference Call Information
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
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
About
CIRCOR INTERNATIONAL, INC. |
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CONSOLIDATED STATEMENT OF OPERATIONS |
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(in thousands, except per share data) |
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(UNAUDITED) |
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Three Months Ended | Nine Months Ended | |||||||||||||||
September 29, |
September 30, |
September 29, |
September 30, |
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Net revenues | $ | 214,731 | $ | 209,804 | $ | 643,773 | $ | 643,946 | ||||||||
Cost of revenues | 144,593 | 151,109 | 443,679 | 462,823 | ||||||||||||
GROSS PROFIT | 70,138 | 58,695 | 200,094 | 181,123 | ||||||||||||
Selling, general and administrative expenses | 46,392 | 44,314 | 139,561 | 134,562 | ||||||||||||
Impairment charges | — | 10,348 | — | 10,348 | ||||||||||||
Special charges / (recoveries) | (190 | ) | 1,377 | 3,441 | 1,377 | |||||||||||
OPERATING INCOME | 23,936 | 2,656 | 57,092 | 34,836 | ||||||||||||
Other (income) expense: | ||||||||||||||||
Interest income | (67 | ) | (101 | ) | (189 | ) | (262 | ) | ||||||||
Interest expense | 812 | 1,223 | 2,559 | 3,482 | ||||||||||||
Other expense, net | 568 | 564 | 1,807 | 887 | ||||||||||||
TOTAL OTHER EXPENSE | 1,313 | 1,686 | 4,177 | 4,107 | ||||||||||||
INCOME BEFORE INCOME TAXES | 22,623 | 970 | 52,915 | 30,729 | ||||||||||||
Provision (benefit) for income taxes | 4,903 | (899 | ) | 14,619 | 9,138 | |||||||||||
NET INCOME | $ | 17,720 | $ | 1,869 | $ | 38,296 | $ | 21,591 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 1.01 | $ | 0.11 | $ | 2.18 | $ | 1.24 | ||||||||
Diluted | $ | 1.00 | $ | 0.11 | $ | 2.18 | $ | 1.24 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 17,582 | 17,433 | 17,553 | 17,391 | ||||||||||||
Diluted | 17,667 | 17,467 | 17,602 | 17,436 | ||||||||||||
CIRCOR INTERNATIONAL, INC. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in thousands) |
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(UNAUDITED) |
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Nine Months Ended | ||||||||
September 29, |
September 30, |
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OPERATING ACTIVITIES | ||||||||
Net income | $ | 38,296 | $ | 21,591 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 11,943 | 11,765 | ||||||
Amortization | 2,273 | 2,823 | ||||||
Payment for Leslie bankruptcy settlement | — | (1,000 | ) | |||||
Impairment charges | — | 10,348 | ||||||
Compensation expense of share-based plans | 3,343 | 3,409 | ||||||
Tax effect of share-based compensation | (536 | ) | 573 | |||||
(Gain) loss on property, plant and equipment | (70 | ) | 1,148 | |||||
Gain on return of acquisition purchase price | (3,400 | ) | — | |||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | ||||||||
Trade accounts receivable | 493 | (123 | ) | |||||
Inventories | (33 | ) | 8,586 | |||||
Prepaid expenses and other assets | 193 | (2,110 | ) | |||||
Accounts payable, accrued expenses and other liabilities | 1,259 | (26,178 | ) | |||||
Net cash provided by operating activities | 53,761 | 30,832 | ||||||
INVESTING ACTIVITIES | ||||||||
Additions to property, plant and equipment | (13,579 | ) | (14,097 | ) | ||||
Proceeds from the sale of property, plant and equipment | 348 | 200 | ||||||
Business acquisitions, return of purchase price | 3,400 | — | ||||||
Net cash used in investing activities | (9,831 | ) | (13,897 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Proceeds from long-term debt | 104,626 | 170,795 | ||||||
Payments of long-term debt | (124,351 | ) | (192,040 | ) | ||||
Dividends paid | (2,011 | ) | (1,997 | ) | ||||
Proceeds from the exercise of stock options | 1,843 | 348 | ||||||
Tax effect of share-based compensation | 536 | (573 | ) | |||||
Net cash used in financing activities | (19,357 | ) | (23,467 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (27 | ) | 653 | |||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 24,547 | (5,879 | ) | |||||
Cash and cash equivalents at beginning of period | 61,738 | 54,855 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 86,285 | $ | 48,976 | ||||
CIRCOR INTERNATIONAL, INC. |
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CONSOLIDATED BALANCE SHEETS |
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(in thousands, except share data) |
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(UNAUDITED) |
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September 29, |
December 31, |
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ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 86,285 | $ | 61,738 | ||||
Short-term investments | 98 | 101 | ||||||
Trade accounts receivable, less allowance for doubtful accounts | 151,528 | 150,825 | ||||||
Inventories | 198,454 | 198,005 | ||||||
Prepaid expenses and other current assets | 18,185 | 16,510 | ||||||
Deferred income tax asset | 15,601 | 15,505 | ||||||
Assets held for sale | 480 | 542 | ||||||
Total Current Assets | 470,631 | 443,226 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 107,415 | 105,903 | ||||||
OTHER ASSETS: | ||||||||
Goodwill | 76,066 | 77,428 | ||||||
Intangibles, net | 42,728 | 45,157 | ||||||
Deferred income tax asset | 22,600 | 30,064 | ||||||
Other assets | 5,923 | 8,203 | ||||||
TOTAL ASSETS | $ | 725,363 | $ | 709,981 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 78,112 | $ | 80,361 | ||||
Accrued expenses and other current liabilities | 59,674 | 67,235 | ||||||
Accrued compensation and benefits | 30,575 | 26,540 | ||||||
Income taxes payable | 2,610 | 393 | ||||||
Notes payable and current portion of long-term debt | 6,667 | 7,755 | ||||||
Total Current Liabilities | 177,638 | 182,284 | ||||||
LONG-TERM DEBT, NET OF CURRENT PORTION | 43,250 | 62,729 | ||||||
DEFERRED INCOME TAXES | 10,037 | 10,744 | ||||||
OTHER NON-CURRENT LIABILITIES | 35,380 | 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; 17,590,312 and 17,445,687 shares issued and outstanding at September 29, 2013 and December 31, 2012, respectively | 176 | 174 | ||||||
Additional paid-in capital | 267,562 | 262,744 | ||||||
Retained earnings | 194,797 | 158,509 | ||||||
Accumulated other comprehensive loss, net of taxes | (3,477 | ) | (3,180 | ) | ||||
Total Shareholders’ Equity | 459,058 | 418,247 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 725,363 | $ | 709,981 | ||||
CIRCOR INTERNATIONAL, INC. |
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SUMMARY OF ORDERS AND BACKLOG |
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(in millions) |
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UNAUDITED |
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Three Months Ended | Nine Months Ended | ||||||||||||||
September 29, |
September 30, |
September 29, |
September 30, |
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ORDERS (1) | |||||||||||||||
Energy | $ | 101.0 | $ | 118.1 | $ | 318.4 | $ | 382.0 | |||||||
Aerospace | 43.8 | 42.9 | 112.9 | 111.6 | |||||||||||
Flow Technologies | 78.5 | 64.5 | 218.9 | 207.8 | |||||||||||
Total orders | $ | 223.3 | $ | 225.5 | $ | 650.2 | $ | 701.4 | |||||||
BACKLOG (2) |
September 29, |
September 30, |
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Energy | $ | 208.5 | $ | 210.4 | |||||||||||
Aerospace | 161.0 | 162.7 | |||||||||||||
Flow Technologies | 77.4 | 71.2 | |||||||||||||
Total backlog | $ | 446.9 | $ | 444.3 | |||||||||||
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. |
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SUMMARY REPORT BY SEGMENT |
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(in thousands, except earnings per share) |
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UNAUDITED |
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2012 | 2013 | |||||||||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL | ||||||||||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||||||||||||
Energy | $ | 109,264 | $ | 113,527 | $ | 109,968 | $ | 96,582 | $ | 429,341 | $ | 96,722 | $ | 110,832 | $ | 108,473 | $ | 316,027 | ||||||||||||||||||
Aerospace | 38,085 | 35,896 | 31,795 | 35,316 | 141,092 | 37,326 | 38,177 | 36,483 | 111,986 | |||||||||||||||||||||||||||
Flow Technologies | 66,931 | 70,439 | 68,041 | 69,707 | 275,119 | 71,350 | 74,635 | 69,775 | 215,760 | |||||||||||||||||||||||||||
Total | 214,280 | 219,862 | 209,804 | 201,605 | 845,552 | 205,398 | 223,644 | 214,731 | 643,773 | |||||||||||||||||||||||||||
* ADJUSTED OPERATING MARGIN | ||||||||||||||||||||||||||||||||||||
Energy | 8.2 | % | 11.1 | % | 14.0 | % | 12.5 | % | 11.4 | % | 11.1 | % | 13.8 | % | 17.1 | % | 14.1 | % | ||||||||||||||||||
Aerospace | 10.8 | % | 8.8 | % | 4.2 | % | 3.5 | % | 7.0 | % | 3.5 | % | 8.6 | % | 11.3 | % | 7.8 | % | ||||||||||||||||||
Flow Technologies | 11.3 | % | 12.8 | % | 13.1 | % | 13.1 | % | 12.6 | % | 12.7 | % | 14.8 | % | 13.6 | % | 13.7 | % | ||||||||||||||||||
Segment operating margin | 9.6 | % | 11.3 | % | 12.2 | % | 11.1 | % | 11.1 | % | 10.3 | % | 13.2 | % | 15.0 | % | 12.9 | % | ||||||||||||||||||
Corporate expenses | (3.2 | )% | (2.9 | )% | (3.4 | )% | (3.4 | )% | (3.2 | )% | (3.2 | )% | (3.3 | )% | (3.9 | )% | (3.5 | )% | ||||||||||||||||||
* Adjusted operating margin | 6.4 | % | 8.4 | % | 8.8 | % | 7.8 | % | 7.8 | % | 7.1 | % | 10.0 | % | 11.1 | % | 9.4 | % | ||||||||||||||||||
Restructuring inventory charges | 0.0 | % | 0.0 | % | 2.0 | % | 0.0 | % | 0.5 | % | 0.1 | % | (0.1 | )% | 0.0 | % | 0.0 | % | ||||||||||||||||||
Impairment charges | 0.0 | % | 0.0 | % | 4.9 | % | 0.0 | % | 1.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||
Special (Recoveries) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | (1.5 | )% | (0.5 | )% | ||||||||||||||||||
Special charges | 0.0 | % | 0.0 | % | 0.7 | % | 1.9 | % | 0.6 | % | 0.7 | % | 1.0 | % | 1.4 | % | 1.0 | % | ||||||||||||||||||
Total operating margin | 6.4 | % | 8.4 | % | 1.3 | % | 5.8 | % | 5.5 | % | 6.3 | % | 9.1 | % | 11.1 | % | 8.9 | % | ||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL | ||||||||||||||||||||||||||||
* ADJUSTED OPERATING INCOME | ||||||||||||||||||||||||||||||||||||
Energy | 8,928 | 12,580 | 15,432 | 12,100 | 49,040 | 10,751 | 15,271 | 18,558 | 44,580 | |||||||||||||||||||||||||||
Aerospace | 4,124 | 3,153 | 1,324 | 1,234 | 9,835 | 1,320 | 3,271 | 4,138 | 8,729 | |||||||||||||||||||||||||||
Flow Technologies | 7,587 | 9,043 | 8,919 | 9,105 | 34,654 | 9,044 | 11,065 | 9,470 | 29,579 | |||||||||||||||||||||||||||
Segment operating income | 20,639 | 24,776 | 25,675 | 22,439 | 93,529 | 21,115 | 29,607 | 32,166 | 82,888 | |||||||||||||||||||||||||||
Corporate expenses | (6,939 | ) | (6,297 | ) | (7,170 | ) | (6,802 | ) | (27,207 | ) | (6,588 | ) | (7,339 | ) | (8,420 | ) | (22,346 | ) | ||||||||||||||||||
* Adjusted operating income | 13,700 | 18,479 | 18,505 | 15,637 | 66,322 | 14,528 | 22,268 | 23,746 | 60,542 | |||||||||||||||||||||||||||
Restructuring inventory charges | — | — | 4,124 | 37 | 4,161 | 250 | (242 | ) | — | 8 | ||||||||||||||||||||||||||
Impairment charges | — | — | 10,348 | — | 10,348 | — | — | — | — | |||||||||||||||||||||||||||
Special (Recoveries) | — | — | — | — | — | — | — | (3,151 | ) | (3,151 | ) | |||||||||||||||||||||||||
Special charges / (recoveries) | — | — | 1,377 | 3,905 | 5,282 | 1,378 | 2,254 | 2,961 | 6,592 | |||||||||||||||||||||||||||
Total operating income | 13,700 | 18,479 | 2,656 | 11,695 | 46,531 | 12,900 | 20,256 | 23,936 | 57,093 | |||||||||||||||||||||||||||
INTEREST EXPENSE, NET | (1,081 | ) | (1,017 | ) | (1,122 | ) | (1,038 | ) | (4,258 | ) | (787 | ) | (838 | ) | (745 | ) | (2,370 | ) | ||||||||||||||||||
OTHER EXPENSE, NET | (138 | ) | (184 | ) | (564 | ) | 373 | (514 | ) | (612 | ) | (626 | ) | (568 | ) | (1,807 | ) | |||||||||||||||||||
PRETAX INCOME | 12,481 | 17,278 | 970 | 11,030 | 41,759 | 11,501 | 18,792 | 22,623 | 52,915 | |||||||||||||||||||||||||||
(PROVISION) BENEFIT FOR INCOME TAXES | (3,896 | ) | (6,142 | ) | 899 | (1,822 | ) | (10,960 | ) | (3,592 | ) | (6,124 | ) | (4,903 | ) | (14,618 | ) | |||||||||||||||||||
EFFECTIVE TAX RATE | 31.2 | % | 35.5 | % | (92.8 | )% | 16.5 | % | 26.2 | % | 31.2 | % | 32.6 | % | 21.7 | % | 27.6 | % | ||||||||||||||||||
NET INCOME | $ | 8,585 | $ | 11,136 | $ | 1,869 | $ | 9,208 | $ | 30,799 | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 38,296 | ||||||||||||||||||
Weighted Average Common Shares Outstanding (Diluted) | 17,390 | 17,451 | 17,467 | 17,499 | 17,452 | 17,529 | 17,607 | 17,667 | 17,602 | |||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.49 | $ | 0.64 | $ | 0.11 | $ | 0.53 | $ | 1.76 | $ | 0.45 | $ | 0.72 | $ | 1.00 | $ | 2.17 | ||||||||||||||||||
ADJUSTED EBITDA | $ | 18,534 | $ | 23,043 | $ | 22,809 | $ | 16,808 | $ | 81,194 | $ | 18,682 | $ | 26,419 | $ | 27,850 | $ | 72,949 | ||||||||||||||||||
ADJUSTED EBITDA AS A % OF SALES | 8.6 | % | 10.5 | % | 10.9 | % | 8.3 | % | 9.6 | % | 9.1 | % | 11.8 | % | 13.0 | % | 11.3 | % | ||||||||||||||||||
CAPITAL EXPENDITURES | $ | 4,122 | $ | 6,661 | $ | 3,314 | $ | 4,073 | $ | 18,170 | $ | 4,707 | $ | 4,100 | $ | 4,772 | $ | 13,579 | ||||||||||||||||||
* Adjusted Operating Income & Margin exclude inventory restructuring, impairment and special charges. | ||||||||||||||||||||||||||||||||||||
CIRCOR INTERNATIONAL, INC. |
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RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS |
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(in thousands, except earnings per share) |
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UNAUDITED |
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2012 | 2013 | |||||||||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD 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 | $ | 29,557 | $ | 40,182 | |||||||||||||||||
ADD: | ||||||||||||||||||||||||||||||||||||
Capital Expenditures | 4,122 | 6,661 | 3,314 | 4,073 | 18,170 | 4,707 | 4,100 | 4,772 | 13,579 | |||||||||||||||||||||||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ | (2,967 | ) | $ | 11,738 | $ | 22,060 | $ | 29,692 | $ | 60,523 | $ | 5,807 | $ | 13,625 | $ | 34,329 | $ | 53,761 | |||||||||||||||||
NET DEBT / (CASH) [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS] | $ | 57,263 | $ | 54,376 | $ | 34,706 | $ | 8,645 | $ | 8,645 | $ | 8,814 | $ | (1,376 | ) | $ | (36,466 | ) | $ | (36,466 | ) | |||||||||||||||
ADD: | ||||||||||||||||||||||||||||||||||||
Cash & Cash Equivalents | 41,291 | 41,414 | 48,976 | 61,738 | 61,738 | 57,633 | 60,831 | 86,285 | 86,285 | |||||||||||||||||||||||||||
Investments | 101 | 98 | 102 | 101 | 101 | 99 | 96 | 98 | 98 | |||||||||||||||||||||||||||
TOTAL DEBT | $ | 98,655 | $ | 95,888 | $ | 83,784 | $ | 70,484 | $ | 70,484 | $ | 66,546 | $ | 59,551 | $ | 49,917 | $ | 49,917 | ||||||||||||||||||
DEBT AS % OF EQUITY | 25 | % | 24 | % | 20 | % | 17 | % | 17 | % | 16 | % | 14 | % | 11 | % | 11 | % | ||||||||||||||||||
TOTAL DEBT | 98,655 | 95,888 | 83,784 | 70,484 | 70,484 | 66,546 | 59,551 | 49,917 | 49,917 | |||||||||||||||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 399,018 | 397,957 | 409,016 | 418,247 | 418,247 | 418,819 | 432,151 | 459,058 | 459,058 | |||||||||||||||||||||||||||
EBIT [NET INCOME LESS INCOME TAXES LESS INTEREST EXPENSE, NET] | $ | 13,562 | $ | 18,295 | $ | 2,092 | $ | 12,068 | $ | 46,017 | $ | 12,287 | $ | 19,630 | $ | 23,368 | $ | 55,284 | ||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||||||||
Interest expense, net | (1,081 | ) | (1,017 | ) | (1,122 | ) | (1,038 | ) | (4,258 | ) | (787 | ) | (838 | ) | (745 | ) | (2,370 | ) | ||||||||||||||||||
(Provision) benefit for income taxes | (3,896 | ) | (6,142 | ) | 899 | (1,822 | ) | (10,960 | ) | (3,592 | ) | (6,124 | ) | (4,903 | ) | (14,618 | ) | |||||||||||||||||||
NET INCOME | $ | 8,585 | $ | 11,136 | $ | 1,869 | $ | 9,208 | $ | 30,799 | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 38,296 | ||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL | ||||||||||||||||||||||||||||
ADJUSTED OPERATING INCOME [OPERATING INCOME EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES / (RECOVERIES)] | $ | 13,700 | $ | 18,479 | $ | 18,505 | $ | 15,600 | $ | 66,322 | $ | 14,528 | $ | 22,268 | $ | 23,746 | $ | 60,542 | ||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||||||||
Inventory restructuring charges | — | — | 4,124 | 37 | 4,161 | 250 | (242 | ) | — | 8 | ||||||||||||||||||||||||||
Impairment charges | — | — | 10,348 | — | 10,348 | — | — | — | — | |||||||||||||||||||||||||||
Special (Recoveries) | — | — | — | — | — | — | — | (3,151 | ) | (3,151 | ) | |||||||||||||||||||||||||
Special charges | — | — | 1,377 | 3,905 | 5,282 | 1,378 | 2,254 | 2,961 | 6,592 | |||||||||||||||||||||||||||
OPERATING INCOME | $ | 13,700 | $ | 18,479 | $ | 2,656 | $ | 11,695 | $ | 46,531 | $ | 12,900 | $ | 20,256 | $ | 23,936 | $ | 57,093 | ||||||||||||||||||
ADJUSTED NET INCOME [NET INCOME EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES / (RECOVERIES), NET OF TAX] | $ | 8,585 | $ | 11,136 | $ | 12,171 | $ | 11,770 | $ | 43,663 | $ | 9,043 | $ | 14,044 | $ | 16,439 | $ | 39,526 | ||||||||||||||||||
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 (Recoveries), net of tax | — | — | — | — | — | — | — | (3,151 | ) | (3,151 | ) | |||||||||||||||||||||||||
Special charges, net of tax | — | — | 895 | 2,538 | 3,433 | 961 | 1,541 | 1,870 | 4,372 | |||||||||||||||||||||||||||
NET INCOME | $ | 8,585 | $ | 11,136 | $ | 1,869 | $ | 9,208 | $ | 30,799 | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 38,296 | ||||||||||||||||||
ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES / (RECOVERIES), NET OF TAX] | $ | 0.49 | $ | 0.64 | $ | 0.76 | $ | 0.69 | $ | 2.59 | $ | 0.52 | $ | 0.81 | $ | 0.93 | $ | 2.26 | ||||||||||||||||||
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 (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 | $ | 0.27 | ||||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.49 | $ | 0.64 | $ | 0.11 | $ | 0.53 | $ | 1.76 | $ | 0.45 | $ | 0.72 | $ | 1.00 | $ | 2.17 | ||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD 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 | $ | 23,368 | $ | 69,500 | ||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||||||||
Interest expense, net | (1,081 | ) | (1,017 | ) | (1,122 | ) | (1,038 | ) | (4,258 | ) | (787 | ) | (838 | ) | (745 | ) | (2,370 | ) | ||||||||||||||||||
Depreciation | (4,008 | ) | (3,825 | ) | (3,932 | ) | (3,967 | ) | (15,732 | ) | (4,009 | ) | (4,026 | ) | (3,908 | ) | (11,943 | ) | ||||||||||||||||||
Amortization | (964 | ) | (923 | ) | (936 | ) | (773 | ) | (3,596 | ) | (758 | ) | (751 | ) | (764 | ) | (2,273 | ) | ||||||||||||||||||
(Provision) benefit for income taxes | (3,896 | ) | (6,142 | ) | 899 | (1,822 | ) | (10,960 | ) | (3,592 | ) | (6,124 | ) | (4,903 | ) | (14,618 | ) | |||||||||||||||||||
NET INCOME | $ | 8,585 | $ | 11,136 | $ | 1,869 | $ | 9,208 | $ | 30,799 | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 38,296 | ||||||||||||||||||
ADJUSTED EBITDA [NET INCOME EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES / (RECOVERIES), NET INTEREST EXPENSE, DEPRECIATION, AMORTIZATION AND INCOME TAXES] | $ | 18,534 | $ | 23,043 | $ | 22,809 | $ | 20,750 | $ | 85,136 | $ | 18,682 | $ | 26,419 | $ | 27,850 | $ | 72,949 | ||||||||||||||||||
Inventory restructuring charges | $ | — | $ | — | $ | (4,124 | ) | $ | (37 | ) | $ | (4,161 | ) | $ | (250 | ) | $ | 242 | $ | — | $ | (8 | ) | |||||||||||||
Impairment charges | $ | — | $ | — | $ | (10,348 | ) | $ | — | $ | (10,348 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Special Recoveries | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,151 | $ | 3,151 | ||||||||||||||||||
Special charges | $ | — | $ | — | $ | (1,377 | ) | $ | (3,905 | ) | $ | (5,282 | ) | $ | (1,378 | ) | $ | (2,254 | ) | $ | (2,961 | ) | $ | (6,592 | ) | |||||||||||
Interest expense, net | $ | (1,081 | ) | $ | (1,017 | ) | $ | (1,122 | ) | $ | (1,038 | ) | $ | (4,258 | ) | $ | (787 | ) | $ | (838 | ) | $ | (745 | ) | $ | (2,370 | ) | |||||||||
Depreciation | $ | (4,008 | ) | $ | (3,825 | ) | $ | (3,932 | ) | $ | (3,967 | ) | $ | (15,732 | ) | $ | (4,009 | ) | $ | (4,026 | ) | $ | (3,908 | ) | $ | (11,943 | ) | |||||||||
Amortization | $ | (964 | ) | $ | (923 | ) | $ | (936 | ) | $ | (773 | ) | $ | (3,596 | ) | $ | (758 | ) | $ | (751 | ) | $ | (764 | ) | $ | (2,273 | ) | |||||||||
(Provision) / benefit for income taxes | $ | (3,896 | ) | $ | (6,142 | ) | $ | 899 | $ | (1,822 | ) | $ | (10,960 | ) | $ | (3,592 | ) | $ | (6,124 | ) | $ | (4,903 | ) | $ | (14,618 | ) | ||||||||||
NET INCOME | $ | 8,585 | $ | 11,136 | $ | 1,869 | $ | 9,208 | $ | 30,799 | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 38,296 | ||||||||||||||||||
CIRCOR INTERNATIONAL, INC. |
||||||||
RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY |
||||||||
USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS |
||||||||
UNAUDITED |
||||||||
4th Quarter 2013 | ||||||||
Low | High | |||||||
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES, NET OF TAX] | $ | 0.88 | $ | 0.95 | ||||
LESS: RESTRUCTURING RELATED CHARGES [INVENTORY RESTRUCTURING CHARGES, IMPAIRMENT CHARGES, SPECIAL CHARGES, NET OF TAX] |
$ | (0.22 | ) | $ | (0.19 | ) | ||
EXPECTED EARNINGS PER COMMON SHARE (Diluted) | $ | 0.66 | $ | 0.76 |
Source:
CIRCOR International
Frederic M. Burditt, 781-270-1200
Chief
Financial Officer