News Release

BURLINGTON, Mass.--(BUSINESS WIRE)--Oct. 28, 2016-- CIRCOR International, Inc. (NYSE: CIR), a leading provider of flow control solutions and other highly engineered products for markets including oil & gas, power generation, industrial and aerospace & defense, today announced financial results for the third quarter ended October 2, 2016.

Third-Quarter 2016 Highlights

• Revenue of $135 million, GAAP EPS of $0.27 and Adjusted EPS of $0.46
• Operating cash flow of $21 million and Free Cash Flow of $17.5 million
• Energy business diversified through the acquisition of Critical Flow Solutions (CFS)
• CIRCOR simplification continues with new organization structure

“Despite the cyclical headwinds facing our Energy business, we continue to focus on what we control. In the third quarter, we negotiated an important strategic acquisition, further reduced costs, and improved our working capital and cash flow performance,” said Scott Buckhout, President and Chief Executive Officer. “The supplier quality issues we noted in the second quarter in our Aerospace and Defense business have been resolved. We expect stronger performance from this business going forward.”

On October 13, 2016, CIRCOR closed on the acquisition of Critical Flow Solutions. This acquisition is consistent with the Company’s disciplined capital deployment strategy and diversifies CIRCOR’s revenue base as it further penetrates the stable downstream refining market. CFS brings an impressive portfolio of high technology valves and automation equipment for severe-service applications. CFS is generating strong margins due to its proprietary technology, large installed base, and high proportion of aftermarket sales.

“In addition, we are taking further actions to optimize our organizational structure to drive top-line growth and better align our businesses with end markets,” added Buckhout. “Going forward, our new ‘Energy’ segment, including our recent acquisition of CFS, will primarily serve the oil & gas market. The second segment, ‘Advanced Flow Solutions,’ will include the current Aerospace & Defense businesses plus the Control Valves product line out of our legacy Energy Group. We expect to complete this reorganization in the fourth quarter and report the year-end results consistent with the new organizational structure.”

Advanced Flow Solutions (AFS) brings together CIRCOR’s Aerospace & Defense and Control Valves product lines under one management structure. AFS will be a diversified flow control technology platform that will help CIRCOR accelerate growth in the aerospace, defense, power, process, and general industrial end markets. In addition, this new Group will serve as the platform to acquire innovative technologies in broader flow control adjacencies. Sumit Mehrotra will lead this new Group, which will be headquartered in Corona, California. Mr. Mehrotra currently serves as CIRCOR’s Senior Vice President for Global Supply Chain & Product Management.

“As we enter the final quarter of the year, we remain focused on executing our simplification and margin improvement actions. We are committed to creating long-term value for our shareholders by investing in both organic growth and acquisitions, expanding margins, generating strong free cash flow, and being disciplined with capital deployment,” concluded Buckhout.

Fourth-Quarter 2016 Guidance

For the fourth quarter of 2016, the Company will provide its guidance during the conference call later today.

Selected Consolidated Results (unaudited)

($ millions except EPS)			Q3 2016					Q3 2015					Change
Revenue			$	134.8				$	159.3					(15)%
GAAP Operating Income			$	3.5				$	(3.5)					200%
Adjusted Operating Income1			$	8.2				$	16.2					(49)%
GAAP Operating Margin				2.6%					(2.2)%					480 bps
Adjusted Operating Margin1				6.1%					10.1%					(400) bps
GAAP Earnings Per Share (Diluted)			$	0.27				$	(0.49)					155%
Adjusted Earnings Per Share (Diluted)1			$	0.46				$	0.64					(28)%
Operating Cash Flow			$	21.2				$	5.0					324%
Free Cash Flow2			$	17.5				$	2.2					NM
Orders			$	111.3				$	128.5					(13)%

Segment Results

($ millions)			Q3 2016					Q3 2015					Change
Energy
Revenue			$	99.8				$	122.9					(19)%
GAAP Operating Margin				7.7%					(0.6)%					830 bps
Adjusted Operating Margin1				11.4%					15.4%					(400) bps
Orders			$	78.5				$	94.2					(17)%
Aerospace & Defense
Revenue			$	35.0				$	36.4					(4)%
GAAP Operating Margin				6.7%					8.9%					(220) bps
Adjusted Operating Margin1				9.7%					9.1%					60 bps
Orders			$	32.8				$	34.3					(4)%

1. Consolidated and Segment Results for Q3 2016 exclude special, restructuring and impairment charges totaling $4.7 million. This includes (i) $1.9 million for non-cash acquisition-related intangible amortization expense; (ii) $0.8 million related to the exit of the Company’s California machine shop; (iii) $0.4 million related to the Company’s Brazil exit; and (iv) $1.6 million related to the Company’s suspension of manufacturing operations in China and other restructuring programs. Q3 2015 results exclude special, restructuring and impairment charges totaling $19.7 million including (i) $16.9 million related to the closure of the Brazil manufacturing operations including restructuring-related inventory charge of $6.4 million; (ii) $2.5 million for Schroedahl intangible amortization expense; and (iii) restructuring costs of $0.4 million.

2. Free Cash Flow is a non-GAAP financial measure and is calculated by subtracting GAAP capital expenditures, net of proceeds from asset sales, from GAAP Operating Cash Flow.

Conference Call Information
CIRCOR International will hold a conference call to review its financial results today, October 28, 2016, at 9:00 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 share (diluted), adjusted operating income, 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 the realization of cost reductions from restructuring activities. 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 flow control solutions and other highly engineered products and sub-systems for markets including oil & gas, power generation, industrial and aerospace & defense. 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 website at http://investors.circor.com.

CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except per share data) UNAUDITED
			Three Months Ended										Nine Months Ended
			October 2, 2016					October 4, 2015					October 2, 2016					October 4, 2015
Net revenues			$	134,833				$	159,258				$	432,023				$	492,023
Cost of revenues			92,479					113,865					298,005					343,187
GROSS PROFIT			42,354					45,393					134,018					148,836
Selling, general and administrative expenses			36,002					38,143					110,290					119,344
Impairment charges			208					2,502					208					2,502
Special charges, net			2,631					8,277					9,165					13,098
OPERATING INCOME (LOSS)			3,513					(3,529		)			14,355					13,892
Other expense (income):
Interest expense, net			605					828					1,841					2,274
Other expense (income), net			163					(587		)			(914		)			(1,197		)
TOTAL OTHER EXPENSE, NET			768					241					927					1,077
INCOME (LOSS) BEFORE INCOME TAXES			2,745					(3,770		)			13,428					12,816
(Benefit from) Provision for income taxes			(1,673		)			4,308					1,325					10,109
NET INCOME (LOSS)			$	4,418				$	(8,078	)			$	12,103				$	2,707
Earnings (Loss) per common share:
Basic			$	0.27				$	(0.49	)			$	0.74				$	0.16
Diluted			$	0.27				$	(0.49	)			$	0.73				$	0.16
Weighted average number of common shares outstanding:
Basic			16,427					16,485					16,411					16,989
Diluted			16,629					16,485					16,568					17,029
Dividends declared per common share			$	0.0375				$	0.0375				$	0.1125				$	0.1125

CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) UNAUDITED
			Nine Months Ended
			October 2, 2016					October 4, 2015
OPERATING ACTIVITIES
Net income			$	12,103				$	2,707
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation			9,614					10,676
Amortization			7,586					6,742
Bad debt (recovery) expense			(928		)			2,832
Loss on write down of inventory			5,784					11,808
Compensation expense of share-based plans			4,200					5,811
Tax effect of share-based plan compensation			123					(259		)
Loss on sale or write down of property, plant and equipment			3,238					478
Impairment charges			208					2,502
Gain on sale of business			—					(1,044		)
Changes in operating assets and liabilities, net of effects of acquisition and disposition:
Trade accounts receivable			15,422					8,118
Inventories			20,216					(29,260		)
Prepaid expenses and other assets			545					(2,801		)
Accounts payable, accrued expenses and other liabilities			(39,161		)			(21,669		)
Net cash provided by (used in) operating activities			38,950					(3,359		)
INVESTING ACTIVITIES
Purchases of property, plant and equipment			(10,776		)			(9,604		)
Proceeds from the sale of property, plant and equipment			1,186					1,200
Proceeds from the sale of affiliate			—					2,759
Business acquisition, net of cash acquired			—					(79,983		)
Net cash used in investing activities			(9,590		)			(85,628		)
FINANCING ACTIVITIES
Proceeds from long-term debt			90,589					241,619
Payments of long-term debt			(88,740		)			(141,830		)
Dividends paid			(1,873		)			(1,937		)
Proceeds from the exercise of stock options			192					259
Tax effect of share-based plan compensation			(123		)			259
Purchases of common stock			—					(69,517		)
Net cash provided by financing activities			45					28,853
Effect of exchange rate changes on cash and cash equivalents			983					(7,416		)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			30,388					(67,550		)
Cash and cash equivalents at beginning of period			54,541					121,372
CASH AND CASH EQUIVALENTS AT END OF PERIOD			$	84,929				$	53,822

CIRCOR INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands) UNAUDITED
			October 2, 2016					December 31, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	84,929				$	54,541
Trade accounts receivable, less allowance for doubtful accounts of $7,570 and $8,290, respectively			112,122					125,628
Inventories			153,470					177,840
Prepaid expenses and other current assets			18,001					16,441
Total Current Assets			368,522					374,450
PROPERTY, PLANT AND EQUIPMENT, NET			81,327					87,029
OTHER ASSETS:
Goodwill			117,167					115,452
Intangibles, net			40,953					48,981
Deferred income taxes			42,713					36,799
Other assets			5,983					7,204
TOTAL ASSETS			$	656,665				$	669,915
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable			$	50,500				$	64,284
Accrued expenses and other current liabilities			39,950					52,878
Accrued compensation and benefits			17,386					18,424
Income taxes payable			5,956					6,585
Total Current Liabilities			113,792					142,171
LONG-TERM DEBT			92,400					90,500
DEFERRED INCOME TAXES			9,837					10,424
OTHER NON-CURRENT LIABILITIES			24,038					26,043
SHAREHOLDERS’ EQUITY:
Common stock			178					177
Additional paid-in capital			287,919					283,621
Retained earnings			268,169					257,939
Common treasury stock, at cost			(74,972		)			(74,972		)
Accumulated other comprehensive loss, net of tax			(64,696		)			(65,988		)
Total Shareholders’ Equity			416,598					400,777
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	656,665				$	669,915

CIRCOR INTERNATIONAL, INC. SUMMARY OF ORDERS AND BACKLOG (in millions) UNAUDITED
				Three Months Ended										Nine Months Ended
				October 2, 2016					October 4, 2015					October 2, 2016					October 4, 2015
ORDERS (1)
Energy				$	78.5				$	94.2				$	266.5				$	348.7
Aerospace & Defense				32.8					34.3					117.0					103.9
Total orders				$	111.3				$	128.5				$	383.5				$	452.6
BACKLOG (2)				October 2, 2016					October 4, 2015
Energy				$	120.9				$	210.6
Aerospace & Defense				99.3					94.1
Total backlog				$	220.2				$	304.7

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 unshipped customer orders.

CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except percentages) UNAUDITED
			2015																				2016
			1ST QTR				2ND QTR				3RD QTR				4TH QTR				TOTAL				1ST QTR				2ND QTR				3RD QTR				YTD
NET REVENUES
Energy			$	127,586			$	127,230			$	122,905			$	124,412			$	502,133			$	112,620			$	110,678			$	99,798			$	323,096
Aerospace & Defense			38,274				39,676				36,353				39,832				154,134				38,178				35,714				35,035				108,927
Total			$	165,860			$	166,906			$	159,258			$	164,243			$	656,267			$	150,798			$	146,392			$	134,833			$	432,023
OPERATING MARGIN
Energy			13.8		%		13.4		%		15.4		%		13.4		%		14.0		%		12.6		%		13.0		%		11.4		%		12.3		%
Aerospace & Defense			8.0		%		8.8		%		9.1		%		10.4		%		9.1		%		9.3		%		8.4		%		9.7		%		9.2		%
Segment operating margin			12.4		%		12.3		%		14.0		%		12.7		%		12.8		%		11.8		%		11.9		%		10.9		%		11.5		%
Corporate expenses			(3.6		)%		(3.3		)%		(3.8		)%		(2.5		)%		(3.3		)%		(4.3		)%		(3.7		)%		(4.8		)%		(4.3		)%
Adjusted operating margin			8.8		%		9.0		%		10.1		%		10.2		%		9.5		%		7.5		%		8.1		%		6.1		%		7.3		%
Restructuring related inventory charges			—		%		1.2		%		4.0		%		0.6		%		1.4		%		1.3		%		0.1		%		—		%		0.5		%
Impairment charges			—		%		—		%		1.6		%		—		%		0.4		%		—		%		—		%		0.2		%		0.1		%
Special restructuring charges, net			0.9		%		1.9		%		0.2		%		(0.2		)%		0.7		%		0.8		%		2.2		%		1.7		%		1.5		%
Special acquisition amortization			—		%		1.3		%		1.6		%		1.4		%		1.0		%		1.2		%		1.3		%		1.4		%		1.3		%
Special other charges, net of recoveries			—		%		0.1		%		5.0		%		1.0		%		1.5		%		0.5		%		0.9		%		0.3		%		0.6		%
Brazil restatement impact			0.4		%		1.5		%		—		%		—		%		0.5		%		—		%		—		%		—		%		—		%
Total GAAP operating margin			7.4		%		3.0		%		(2.2		)%		7.5		%		4.0		%		3.6		%		3.7		%		2.6		%		3.3		%

CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except percentages and per share data) UNAUDITED
			2015																				2016
			1ST QTR				2ND QTR				3RD QTR				4TH QTR				TOTAL				1ST QTR				2ND QTR				3RD QTR				YTD
INCOME STATEMENT
Energy			$	17,550			$	17,008			$	18,932			$	16,724			$	70,214			$	14,186			$	14,346			$	11,357			$	39,888
Aerospace & Defense			3,045				3,494				3,298				4,146				13,982				3,562				3,011				3,406				9,979
Segment operating income			20,595				20,502				22,230				20,870				84,197				17,748				17,357				14,763				49,867
Corporate expenses			(6,034		)		(5,477		)		(6,078		)		(4,122		)		(21,710		)		(6,488		)		(5,431		)		(6,522		)		(18,441		)
Adjusted operating income			14,561				15,025				16,152				16,748				62,487				11,260				11,926				8,240				31,426
Restructuring related inventory charges			—				2,005				6,412				974				9,391				1,958				75				—				2,033
Impairment charges			—				—				2,502				—				2,502				—				—				208				208
Special restructuring charges, net			1,512				3,127				342				(347		)		4,634				1,163				3,259				2,252				6,674
Special acquisition amortization			—				2,110				2,490				2,238				6,838				1,868				1,911				1,888				5,667
Special other charges, net of recoveries			(1		)		183				7,935				1,603				9,720				776				1,334				379				2,489
Brazil restatement impact			719				2,509				—				—				3,228				—				—				—				—
Total GAAP operating income (loss)			12,331				5,090				(3,529		)		12,281				26,174				5,495				5,347				3,513				14,355
INTEREST EXPENSE, NET			(640		)		(805		)		(828		)		(570		)		(2,844		)		(631		)		(605		)		(605		)		(1,841		)
OTHER INCOME (EXPENSE), NET			506				104				587				(2,099		)		(902		)		528				549				(163		)		914
PRETAX INCOME (LOSS)			12,197				4,389				(3,770		)		9,612				22,428				5,392				5,291				2,745				13,428
(PROVISION FOR) BENEFIT FROM INCOME TAXES			(3,284		)		(2,517		)		(4,308		)		(2,456		)		(12,565		)		(1,520		)		(1,478		)		1,673				(1,325		)
EFFECTIVE TAX RATE			26.9		%		57.3		%		(114.3		)%		25.6		%		56.0		%		28.2		%		27.9		%		(61.0		)%		9.9		%
NET INCOME (LOSS)			$	8,913			$	1,872			$	(8,078	)		$	7,156			$	9,863			$	3,872			$	3,813			$	4,418			$	12,103
Weighted Average Common Shares Outstanding (Diluted)			17,712				16,900				16,485				16,555				16,913				16,481				16,595				16,629				16,568
EARNINGS (LOSS) PER COMMON SHARE (Diluted)			$	0.50			$	0.11			$	(0.49	)		$	0.43			$	0.58			$	0.23			$	0.23			$	0.27			$	0.73

CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except percentages) UNAUDITED
			2015																				2016
			1ST QTR				2ND QTR				3RD QTR				4TH QTR				TOTAL				1ST QTR				2ND QTR				3RD QTR				YTD
FREE CASH FLOW AS % OF NET INCOME (LOSS)			(207		)%		239		%		(27		)%		397		%		169		%		96		%		214		%		395		%		243		%
FREE CASH FLOW			$	(18,415	)		$	4,483			$	2,169			$	28,403			$	16,640			$	3,720			$	8,174			$	17,466			$	29,360
ADD:
Capital expenditures, net of sale proceeds			1,983				3,584				2,837				2,098				10,502				3,934				1,926				3,730				9,590
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES			$	(16,432	)		$	8,067			$	5,006			$	30,501			$	27,142			$	7,654			$	10,100			$	21,196			$	38,950
NET (CASH) DEBT			$	(66,337	)		$	59,051			$	57,277			$	35,959			$	35,959			$	31,220			$	24,630			$	7,471			$	7,471
ADD:
Cash & cash equivalents			103,883				55,027				53,822				54,541				54,541				66,580				72,970				84,929				84,929
TOTAL DEBT			$	37,546			$	114,078			$	111,099			$	90,500			$	90,500			$	97,800			$	97,600			$	92,400			$	92,400
TOTAL SHAREHOLDERS' EQUITY			$	462,384			$	421,070			$	407,979			$	400,777			$	400,777			$	414,107			$	411,367			$	416,598			$	416,598
DEBT AS % OF EQUITY			8		%		27		%		27		%		23		%		23		%		24		%		24		%		22		%		22		%
NET DEBT AS % OF EQUITY			(14		)%		14		%		14		%		9		%		9		%		8		%		6		%		2		%		2		%

CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except percentages and per share data) UNAUDITED
			2015																				2016
			1ST QTR				2ND QTR				3RD QTR				4TH QTR				TOTAL				1ST QTR				2ND QTR				3RD QTR				YTD
ADJUSTED NET INCOME			$	10,564			$	9,357			$	10,635			$	10,512			$	41,068			$	8,683			$	8,781			$	7,626			$	25,090
LESS:
Restructuring related inventory charges			—				2,005				6,412				974				9,391				1,958				75				—				2,033
Impairment charges			—				—				2,502				—				2,502				—				—				208				208
Special restructuring charges, net			1,512				3,127				342				(347		)		4,634				1,163				3,259				2,252				6,674
Special acquisition amortization			—				2,110				2,490				2,238				6,838				1,868				1,911				1,888				5,667
Special other charges, net of recoveries			(1		)		183				7,935				1,603				9,720				776				1,334				379				2,489
Brazil restatement impact			719				2,509				—				—				3,228				—				—				—				—
Income tax impact			(579		)		(2,449		)		(968		)		(1,112		)		(5,108		)		(954		)		(1,611		)		(1,519		)		(4,084		)
NET INCOME (LOSS)			$	8,913			$	1,872			$	(8,078	)		$	7,156			$	9,863			$	3,872			$	3,813			$	4,418			$	12,103
ADJUSTED EARNINGS PER SHARE (Diluted)			$	0.60			$	0.55			$	0.64			$	0.63			$	2.43			$	0.52			$	0.53			$	0.46			$	1.51
LESS:
Restructuring related inventory charges			—				0.12				0.39				0.06				0.57				0.12				—				—				0.12
Impairment charges			—				—				0.15				—				0.15				—				—				0.01				0.01
Special restructuring charges, net			0.09				0.19				0.02				(0.02		)		0.28				0.07				0.20				0.14				0.40
Special acquisition amortization			—				0.12				0.15				0.14				0.41				0.11				0.12				0.11				0.34
Special other charges, net of recoveries			—				0.01				0.48				0.10				0.59				0.05				0.08				0.02				0.15
Brazil restatement impact			0.04				0.15				—				—				0.19				—				—				—				—
Income tax impact			(0.03		)		(0.15		)		(0.06		)		(0.07		)		(0.31		)		(0.06		)		(0.10		)		(0.09		)		(0.25		)
EARNINGS (LOSS) PER COMMON SHARE (Diluted)			$	0.50			$	0.11			$	(0.49	)		$	0.43			$	0.58			$	0.23			$	0.23			$	0.27			$	0.73

CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except percentages) UNAUDITED
			2015																				2016
			1ST QTR				2ND QTR				3RD QTR				4TH QTR				TOTAL				1ST QTR				2ND QTR				3RD QTR				YTD
ADJUSTED EBITDA			$	19,299			$	19,474			$	20,980			$	18,927			$	78,681			$	15,712			$	16,346			$	11,815			$	43,873
LESS:
Restructuring related inventory charges			—				(2,005		)		(6,412		)		(974		)		(9,391		)		(1,958		)		(75		)		—				(2,033		)
Impairment charges			—				—				(2,502		)		—				(2,502		)		—				—				(208		)		(208		)
Special restructuring charges, net			(1,512		)		(3,127		)		(342		)		347				(4,634		)		(1,163		)		(3,259		)		(2,252		)		(6,674		)
Special other charges, net of recoveries			1				(183		)		(7,935		)		(1,603		)		(9,720		)		(776		)		(1,334		)		(379		)		(2,489		)
Brazil restatement impact			(719		)		(2,509		)		—				—				(3,228		)		—				—				—				—
EBITDA			$	17,068			$	11,650			$	3,789			$	16,698			$	49,206			$	11,815			$	11,678			$	8,976			$	32,469
LESS:
Interest expense, net			(641		)		(805		)		(828		)		(570		)		(2,844		)		(631		)		(605		)		(605		)		(1,841		)
Depreciation			(3,521		)		(3,629		)		(3,526		)		(3,578		)		(14,254		)		(3,263		)		(3,213		)		(3,138		)		(9,614		)
Amortization			(710		)		(2,827		)		(3,205		)		(2,939		)		(9,681		)		(2,529		)		(2,569		)		(2,488		)		(7,586		)
(Provision for) benefit from income taxes			(3,284		)		(2,517		)		(4,308		)		(2,456		)		(12,565		)		(1,520		)		(1,478		)		1,673				(1,325		)
NET INCOME (LOSS)			$	8,913			$	1,872			$	(8,078	)		$	7,156			$	9,863			$	3,872			$	3,813			$	4,418			$	12,103

CIRCOR INTERNATIONAL, INC. SUPPLEMENTAL SEGMENT DATA (in thousands, except percentages) UNAUDITED
			2015																														2016
			1ST QTR						2ND QTR						3RD QTR						4TH QTR						TOTAL						1ST QTR						2ND QTR						3RD QTR						YTD
			Energy			A&D			Energy			A&D			Energy			A&D			Energy			A&D			Energy			A&D			Energy			A&D			Energy			A&D			Energy			A&D			Energy			A&D
ADJUSTED OPERATING MARGIN			13.8	%		8.0	%		13.4	%		8.8	%		15.4	%		9.1	%		13.4	%		10.4	%		14.0	%		9.1	%		12.6	%		9.3	%		13.0	%		8.4	%		11.4	%		9.7	%		12.3	%		9.2	%
Restructuring related inventory charges			—	%		—	%		0.1	%		4.7	%		5.2	%		—	%		0.4	%		1.2	%		1.4	%		1.5	%		1.7	%		0.1	%		0.1	%		—	%		—	%		—	%		0.6	%		—	%
Impairment charges			—	%		—	%		—	%		—	%		2.0	%		—	%		—	%		—	%		0.5	%		—	%		—	%		—	%		—	%		—	%		0.2	%		—	%		0.1	%		—	%
Special restructuring charges, net			0.3	%		3.1	%		2.2	%		0.8	%		0.2	%		0.2	%		(0.3	)%		0.1	%		0.6	%		1.0	%		(0.2	)%		3.8	%		0.8	%		6.6	%		1.2	%		3.0	%		0.6	%		4.5	%
Special acquisition amortization			—	%		—	%		1.7	%		—	%		2.0	%		—	%		1.8	%		—	%		1.4	%		—	%		1.7	%		—	%		1.7	%		—	%		1.9	%		—	%		1.8	%		—	%
Special other charges, net of recoveries			0.4	%		(2.6	)%		0.2	%		(0.2	)%		6.5	%		—	%		0.7	%		—	%		1.9	%		(0.7	)%		0.7	%		—	%		1.2	%		—	%		0.4	%		—	%		0.8	%		—	%
Brazil restatement impact			0.6	%		—	%		2.0	%		—	%		—	%		—	%		—	%		—	%		0.6	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%
GAAP OPERATING MARGIN			12.5	%		7.5	%		7.2	%		3.5	%		(0.6	)%		8.9	%		10.9	%		9.1	%		7.6	%		7.2	%		8.8	%		5.5	%		9.1	%		1.8	%		7.7	%		6.7	%		8.6	%		4.7	%

			2015																																								2016
			1ST QTR								2ND QTR								3RD QTR								4TH QTR								TOTAL								1ST QTR								2ND QTR								3RD QTR								YTD
			Energy				A&D				Energy				A&D				Energy				A&D				Energy				A&D				Energy				A&D				Energy				A&D				Energy				A&D				Energy				A&D				Energy				A&D
ADJUSTED OPERATING INCOME			$	17,550			$	3,045			$	17,008			$	3,494			$	18,932			$	3,298			$	16,724			$	4,146			$	70,214			$	13,982			$	14,186			$	3,562			$	14,346			$	3,011			$	11,357			$	3,406			$	39,888			$	9,979
Restructuring related inventory charges			—				—				153				1,852				6,412				—				508				466				7,073				2,318				1,919				39				74				—				—				—				1,993				39
Impairment charges			—				—				—				—				2,502				—				—				—				2,502				—				—				—				—				—				208				—				208				—
Special restructuring charges, net			343				1,169				2,818				309				279				63				(394		)		47				3,046				1,588				(278		)		1,441				900				2,359				1,191				1,061				1,814				4,861
Special acquisition amortization			—				—				2,110				—				2,490				—				2,238				—				6,838				—				1,868				—				1,911				—				1,888				—				5,667				—
Special other charges, net of recoveries			556				(977		)		248				(65		)		7,935				—				828				—				9,567				(1,042		)		774				—				1,335				—				379				—				2,488				—
Brazil restatement impact			719				—				2,509				—				—				—				—				—				3,228				—				—				—				—				—				—				—				—				—
GAAP OPERATING INCOME (LOSS)			$	15,932			$	2,853			$	9,170			$	1,398			$	(686	)		$	3,235			$	13,544			$	3,633			$	37,960			$	11,118			$	9,903			$	2,082			$	10,126			$	652			$	7,690			$	2,345			$	27,719			$	5,079

View source version on businesswire.com: http://www.businesswire.com/news/home/20161028005401/en/

Source: CIRCOR International, Inc.

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