CIRCOR Reports Preliminary Third-Quarter 2019 Financial Results
The corrected release reads:
CIRCOR REPORTS PRELIMINARY THIRD-QUARTER 2019 FINANCIAL RESULTS
The results presented in this press release are considered preliminary, as the Company has not completed its review procedures related to reporting discontinued operations and related impairments and associated tax effects. As the Company completes its review, material adjustments may arise between the date of this press release and the date the Company files with the
Third-Quarter 2019 Highlights
- Results including Distributed Valves (consistent with guidance)
- Revenue of
$252 million - Adjusted Earnings per Share of
$0.48
- Revenue of
- Results from continuing operations excluding divestitures
- Revenue of
$237 million - Preliminary GAAP Loss per Share of
($1.05) - Adjusted Earnings per Share of
$0.63 - Preliminary GAAP operating margin of (1.0)%
- Adjusted Operating Margin of 11.0% (excluding divestitures)
- Revenue of
- Completed divestiture of non-core Engineered Valves
- Completed divestiture of non-core Spence and Nicholson Product lines for
~$85M - Announced intention to exit non-core Distributed Valves now classified as discontinued operations
- Debt Paydown of
$89 million in the quarter;$148 million YTD - On track to deliver 2019 and 2020 targets communicated in 18-month plan
“We had a solid third-quarter 2019 with continuing operations delivering 7% organic revenue growth and 11.0% adjusted operating margin, up 160 basis points from a year ago,” said
“Our third quarter performance and outlook for the remainder of the year are in-line with the targets communicated in our 18-month plan. We remain committed to driving long-term growth, expanding margins, generating strong free cash flow, and deleveraging the Company as we drive value for shareholders,” concluded Mr. Buckhout.
Fourth-Quarter 2019 Guidance
For the fourth quarter of 2019,
Selected Preliminary Consolidated Results (unaudited)
($ millions except EPS) |
Q3 2019 |
|
Q3 2018 |
|
Change |
||||||||
Revenue |
$ |
237.1 |
|
|
$ |
247.2 |
|
|
|
(4)% |
|
||
Revenue excluding divested businesses1 |
$ |
234.1 |
|
|
$ |
223.5 |
|
|
|
5% |
|
||
GAAP Operating (Loss) Income |
$ |
(2.3) |
|
|
$ |
8.5 |
|
|
|
N/M |
|
||
Adjusted Operating Income2 |
$ |
25.6 |
|
|
$ |
25.0 |
|
|
|
2% |
|
||
GAAP Operating Margin |
|
(1.0)% |
|
|
|
3.5% |
|
|
|
(450) bps |
|
||
Adjusted Operating Margin2 |
|
10.8% |
|
|
|
10.1% |
|
|
|
70 bps |
|
||
Adjusted Operating Margin excluding divestitures2 |
|
11.0% |
|
|
|
9.4% |
|
|
|
160 bps |
|
||
GAAP (Loss) Earnings Per Share (Diluted) |
$ |
(5.30) |
|
|
$ |
(0.34) |
|
|
|
N/M |
|
||
Adjusted Earnings Per Share (Diluted)2 |
$ |
0.63 |
|
|
$ |
0.53 |
|
|
|
11% |
|
||
Operating Cash Flow |
$ |
8.1 |
|
|
$ |
24.1 |
|
|
|
N/M |
|
||
Free Cash Flow3 |
$ |
9.0 |
|
|
$ |
19.0 |
|
|
|
N/M |
|
||
Orders |
$ |
223.0 |
|
|
$ |
283.6 |
|
|
|
(21)% |
|
||
Orders excluding divested businesses1 |
$ |
218.2 |
|
|
$ |
257.3 |
|
|
|
(15)% |
|
||
Segment Results
($ millions) |
Q3 2019 |
|
Q3 2018 |
|
Change |
||||||||
Energy |
|
|
|
|
|
|
|
|
|
|
|
||
Revenue |
$ |
55.8 |
|
|
$ |
70.7 |
|
|
|
(21)% |
|
||
Revenue excluding divested business1 |
$ |
55.8 |
|
|
$ |
54.1 |
|
|
|
3% |
|
||
Segment Operating Income2 |
$ |
5.3 |
|
|
$ |
9.5 |
|
|
|
(44)% |
|
||
Segment Operating Margin2 |
|
9.4% |
|
|
|
13.4% |
|
|
|
(400) bps |
|
||
Orders |
$ |
53.3 |
|
|
$ |
87.1 |
|
|
|
(39)% |
|
||
Orders excluding divested business1 |
$ |
53.3 |
|
|
$ |
68.0 |
|
|
|
(22)% |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||
Aerospace & Defense |
|
|
|
|
|
|
|
|
|
|
|
||
Revenue |
$ |
67.6 |
|
|
$ |
57.8 |
|
|
|
17% |
|
||
Segment Operating Income2 |
$ |
13.5 |
|
|
$ |
8.7 |
|
|
|
55% |
|
||
Segment Operating Margin2 |
|
20.0% |
|
|
|
15.1% |
|
|
|
490 bps |
|
||
Orders |
$ |
64.0 |
|
|
$ |
81.5 |
|
|
|
(21)% |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||
Industrial |
|
|
|
|
|
|
|
|
|
|
|
||
Revenue |
$ |
113.6 |
|
|
$ |
118.7 |
|
|
|
(4)% |
|
||
Revenue excluding divested business1 |
$ |
110.6 |
|
|
$ |
111.6 |
|
|
|
(1)% |
|
||
Segment Operating Income2 |
$ |
14.0 |
|
|
$ |
14.6 |
|
|
|
(4)% |
|
||
Segment Operating Margin2 |
|
12.3% |
|
|
|
12.3% |
|
|
|
0 bps |
|
||
Orders |
$ |
105.7 |
|
|
$ |
114.9 |
|
|
|
(8)% |
|
||
Orders excluding divested business1 |
$ |
100.9 |
|
|
$ |
107.8 |
|
|
|
(6)% |
|
||
|
- Orders and revenue excluding divested businesses are non-GAAP measures and are calculated by subtracting the orders and revenues generated by the divested businesses during the periods prior to their divestiture from the reported orders and revenues. Divested businesses include Reliability Services (Energy), Spence/Nicholson (Industrial), and Delden (Industrial), which were sold before
September 29, 2019 . - Adjusted Consolidated and Segment Results for Q3 2019 exclude a loss from discontinued operations of
$84.7 million and a net gain from non-cash acquisition-related intangible amortization, special and restructuring charges totaling$18.8 million ($13.9 million , net of tax). These charges include: (i)$12.3 million charge for non-cash acquisition-related intangible amortization and depreciation expense; (ii)$4.0 million of professional fees associated with an unsolicited tender offer to acquire all outstanding shares of the Company’s common stock; (iii)$6.7 million for restructuring-related programs across Industrial, Energy and Corporate; (iv)$4.6 million net loss associated with the sale of businesses; and (v)$0.3 million of other special and restructuring charges. Adjusted Consolidated and Segment Results for Q3 2018 exclude a loss from discontinued operations of$2.9 million and non-cash acquisition-related intangible amortization, special and restructuring charges totaling$16.5 million ($14.7 million , net of tax). These charges include: (i)$13.5 million -charge for non-cash acquisition-related intangible amortization expense and amortization of the step-up in fixed asset values and (ii)$3.0 million of other special and restructuring charges. - 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
Use of Non-GAAP Financial Measures
Adjusted operating income, Adjusted operating margin, Adjusted net income, Adjusted earnings per share (diluted), EBITDA, Adjusted EBITDA, net debt, free cash flow and organic growth, (and such measures further excluding divested businesses) are non-GAAP financial measures. These non-GAAP financial measures are used by management in our financial and operating decision making because we believe they reflect our ongoing business and facilitate period-to-period comparisons. We believe these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company’s current operating performance and future prospects in the same manner as management does, if they so choose. These non-GAAP financial measures also allow investors and others to compare the Company’s current financial results with the Company’s past financial results in a consistent manner.
For example:
- We exclude costs and tax effects associated with restructuring activities, such as reducing overhead and consolidating facilities. We believe that the costs related to these restructuring activities are not indicative of our normal operating costs.
- We exclude certain acquisition-related costs, including significant transaction costs and amortization of inventory and fixed-asset step-ups and the related tax effects. We exclude these costs because we do not believe they are indicative of our normal operating costs.
- We exclude the expense and tax effects associated with the non-cash amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives up to 25 years. Exclusion of the non-cash amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.
- We also exclude certain gains/losses and related tax effects, which are either isolated or cannot be expected to occur again with any predictability, and that we believe are not indicative of our normal operating gains and losses. For example, we exclude gains/losses from items such as the sale of a business, significant litigation-related matters and lump-sum pension plan settlements.
- We exclude the results of discontinued operations.
- Due to the significance of recently sold businesses and to provide a comparison of changes in our orders and revenue, we also discuss these changes on an “organic” basis. Organic is calculated assuming the divestitures completed prior to
September 29, 2019 were completed onJanuary 1, 2018 and excluding the impact of changes in foreign currency exchange rates.
CIRCOR’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company’s operating performance and comparing such performance to that of prior periods and to the performance of our competitors. We use such measures when publicly providing our business outlook, assessing future earnings potential, evaluating potential acquisitions and dispositions and in our financial and operating decision-making process, including for compensation purposes.
Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with accounting principles generally accepted in
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933, as amended, and Section 21 E 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. |
|||||||
|
Three Months Ended |
||||||
|
September 29, 2019 |
|
September 30, 2018 |
||||
Net revenues |
$ |
237.1 |
|
|
$ |
247.2 |
|
Cost of revenues |
162.6 |
|
|
167.1 |
|
||
GROSS PROFIT |
74.5 |
|
|
80.1 |
|
||
Selling, general and administrative expenses |
60.0 |
|
|
68.5 |
|
||
Special and restructuring charges, net |
16.7 |
|
|
3.0 |
|
||
OPERATING (LOSS) INCOME |
(2.3 |
) |
|
8.5 |
|
||
Other expense (income): |
|
|
|
||||
Interest expense, net |
11.8 |
|
|
14.1 |
|
||
Other income, net |
(0.8 |
) |
|
(1.6 |
) |
||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(13.3 |
) |
|
(4.0 |
) |
||
Provision for income taxes |
7.5 |
|
|
— |
|
||
Loss from continuing operations, net of tax |
(20.8 |
) |
|
(4.0 |
) |
||
Loss from discontinued operations, net of tax |
(84.7 |
) |
|
(2.9 |
) |
||
NET LOSS |
$ |
(105.5 |
) |
|
$ |
(6.8 |
) |
Basic loss per common share: |
|
|
|
||||
Basic loss from continuing operations |
$ |
(1.05 |
) |
|
$ |
(0.20 |
) |
Basic loss from discontinuing operations |
$ |
(4.25 |
) |
|
$ |
(0.14 |
) |
Net Loss |
$ |
(5.30 |
) |
|
$ |
(0.34 |
) |
Diluted loss per common share: |
|
|
|
||||
Diluted loss from continuing operations |
$ |
(1.05 |
) |
|
$ |
(0.20 |
) |
Diluted loss from discontinuing operations |
$ |
(4.25 |
) |
|
$ |
(0.14 |
) |
Net Loss |
$ |
(5.30 |
) |
|
$ |
(0.34 |
) |
Weighted average number of common shares outstanding: |
|
|
|
||||
Basic |
19.9 |
|
|
19.8 |
|
||
Diluted |
19.9 |
|
|
19.8 |
|
||
Numbers may not add due to rounding. | |||||||
The results presented in this press release are considered preliminary, as the Company has not completed its review procedures related to reporting discontinued operations and related impairments and associated tax effects. As the Company completes its review, material adjustments may arise between the date of this press release and the date the Company files with the SEC its Quarterly Report on Form 10-Q for the quarter ended September 29, 2019. |
CIRCOR INTERNATIONAL, INC. |
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|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
2018 |
2019 |
|||||||||||||||||||||||||
As Reported |
1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
TOTAL |
1ST QTR |
2ND QTR |
3RD QTR |
TOTAL |
||||||||||||||||||
ORDERS |
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Energy |
$ |
85.3 |
|
$ |
66.8 |
|
$ |
87.1 |
|
$ |
72.3 |
|
$ |
311.6 |
|
$ |
48.1 |
|
$ |
44.0 |
|
$ |
53.3 |
|
$ |
145.3 |
|
Aerospace & Defense |
59.8 |
|
59.4 |
|
81.5 |
|
76.7 |
|
277.5 |
|
88.1 |
|
93.4 |
|
64.0 |
|
245.5 |
|
|||||||||
Industrial |
136.6 |
|
136.7 |
|
114.9 |
|
121.9 |
|
510.1 |
|
123.7 |
|
120.7 |
|
105.7 |
|
350.1 |
|
|||||||||
Total |
$ |
281.7 |
|
$ |
263.0 |
|
$ |
283.6 |
|
$ |
270.9 |
|
$ |
1,099.2 |
|
$ |
259.9 |
|
$ |
258.0 |
|
$ |
223.0 |
|
$ |
740.9 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
NET REVENUES |
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Energy |
$ |
64.3 |
|
$ |
71.1 |
|
$ |
70.7 |
|
$ |
82.8 |
|
$ |
288.9 |
|
$ |
66.9 |
|
$ |
61.8 |
|
$ |
55.8 |
|
$ |
184.5 |
|
Aerospace & Defense |
58.5 |
|
57.5 |
|
57.8 |
|
63.3 |
|
237.0 |
|
61.2 |
|
64.7 |
|
67.6 |
|
|
193.6 |
|
||||||||
Industrial |
117.1 |
|
131.1 |
|
118.7 |
|
120.6 |
|
487.6 |
|
110.7 |
|
119.3 |
|
113.6 |
|
|
343.7 |
|
||||||||
Total |
$ |
239.9 |
|
$ |
259.7 |
|
$ |
247.2 |
|
$ |
266.7 |
|
$ |
1,013.5 |
|
$ |
238.9 |
|
$ |
245.8 |
|
$ |
237.1 |
|
$ |
721.7 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
2018 |
2019 |
|||||||||||||||||||||||||
DIVESTED BUSINESSES (a) |
1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
Total |
1ST QTR |
2ND QTR |
3RD QTR |
Total |
||||||||||||||||||
ORDERS |
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Energy |
$ |
16.9 |
|
$ |
18.4 |
|
$ |
19.1 |
|
$ |
15.5 |
|
$ |
69.9 |
|
$ |
4.1 |
|
$ |
— |
|
$ |
— |
|
$ |
4.1 |
|
Industrial |
$ |
9.7 |
|
$ |
9.8 |
|
$ |
7.1 |
|
$ |
11.4 |
|
$ |
38.0 |
|
$ |
4.1 |
|
$ |
5.3 |
|
$ |
4.8 |
|
$ |
14.2 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
NET REVENUES |
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Energy |
$ |
14.7 |
|
$ |
17.4 |
|
$ |
16.6 |
|
$ |
16.9 |
|
$ |
65.6 |
|
$ |
3.1 |
|
$ |
— |
|
$ |
— |
|
$ |
3.1 |
|
Industrial |
$ |
8.8 |
|
$ |
6.3 |
|
$ |
7.1 |
|
$ |
9.0 |
|
$ |
31.3 |
|
$ |
5.4 |
|
$ |
5.2 |
|
$ |
2.9 |
|
$ |
13.5 |
|
|
|
|
|
|
|
|
|
|
|
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OTHER INFORMATION |
Q3 2019 |
|
Q3 2018 |
|
|
Q3 2019 |
|
Q4 2018 |
|
||||||||||||||||||
BACKLOG (b) |
|
|
|
|
Debt & Cash |
|
|
|
|
||||||||||||||||||
Energy |
$ |
59.3 |
|
|
$ |
121.6 |
|
|
Gross Debt |
$ |
659.1 |
|
|
$ |
807.1 |
|
|
||||||||||
Aerospace & Defense |
206.9 |
|
|
150.6 |
|
|
Cash & Equivalents |
69.2 |
|
|
68.5 |
|
|
||||||||||||||
Industrial |
159.1 |
|
|
178.0 |
|
|
Net Debt |
$ |
589.9 |
|
|
$ |
738.5 |
|
|
||||||||||||
Total |
$ |
425.3 |
|
|
$ |
450.2 |
|
|
|
|
|
|
|
|
|||||||||||||
Numbers may not add due to rounding. | |||||||||||||||||||||||||||
(a) Divested businesses include Reliability Services (Energy), Spence / Nicholson (Industrial) and Delden (Industrial) which were sold before September 29, 2019. Engineered Valves and Distributed Valves are discontinued operations and not reflected in the As Reported figures in accordance with US GAAP. |
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(b) Backlog at Q3 2018 includes $21.6 million and $15.0 million for Energy and Industrial, respectively related to divested businesses. A&D 2018 backlog has been adjusted to conform to current period reporting methodology. |
CIRCOR INTERNATIONAL, INC. |
|||||||
|
Three Months Ended |
||||||
|
September 29, 2019 |
|
September 30, 2018 |
||||
ORDERS |
|
|
|
||||
Energy |
$ |
53.3 |
|
|
$ |
87.1 |
|
Aerospace & Defense |
64.0 |
|
|
81.5 |
|
||
Industrial |
105.7 |
|
|
114.9 |
|
||
Total orders |
$ |
223.0 |
|
|
$ |
283.6 |
|
|
|
|
|
||||
NET REVENUES |
September 29, 2019 |
|
September 30, 2018 |
||||
Energy |
$ |
55.8 |
|
|
$ |
70.7 |
|
Aerospace & Defense |
67.6 |
|
|
57.8 |
|
||
Industrial |
113.6 |
|
|
118.7 |
|
||
Total |
$ |
237.1 |
|
|
$ |
247.2 |
|
|
|
|
|
||||
SEGMENT OPERATING INCOME |
September 29, 2019 |
|
September 30, 2018 |
||||
Energy |
$ |
5.3 |
|
|
$ |
9.5 |
|
Aerospace & Defense |
13.5 |
|
|
8.7 |
|
||
Industrial |
14.0 |
|
|
14.6 |
|
||
Corporate expenses |
(7.1 |
) |
|
(7.8 |
) |
||
CIRCOR Adjusted Operating Income |
$ |
25.6 |
|
|
$ |
25.0 |
|
|
|
|
|
||||
SEGMENT OPERATING MARGIN % |
September 29, 2019 |
|
September 30, 2018 |
||||
Energy |
9.4 |
% |
|
13.4 |
% |
||
Aerospace & Defense |
20.0 |
% |
|
15.1 |
% |
||
Industrial |
12.3 |
% |
|
12.3 |
% |
||
CIRCOR Adjusted Operating Margin |
10.8 |
% |
|
10.1 |
% |
||
|
|
|
|
||||
SEGMENT OPERATING MARGIN % EXCLUDING DIVESTITURES (a) |
September 29, 2019 |
|
September 30, 2018 |
||||
Energy |
9.4 |
% |
|
12.2 |
% |
||
Aerospace & Defense |
20.0 |
% |
|
15.1 |
% |
||
Industrial |
12.6 |
% |
|
12.0 |
% |
||
CIRCOR |
11.0 |
% |
|
9.4 |
% |
||
Numbers may not add due to rounding. | |||||||
(a) Divested businesses include Reliability Services (Energy), Spence / Nicholson (Industrial) and Delden (Industrial) which were sold before September 29, 2019. Engineered Valves and Distributed Valves are discontinued operations and not reflected in the As Reported figures in accordance with US GAAP. |
CIRCOR INTERNATIONAL, INC. |
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|
2019 |
|
2018 |
||||
|
3RD QTR |
|
3RD QTR |
||||
NET (LOSS) INCOME |
$ |
(105.5 |
) |
|
$ |
(6.8 |
) |
LESS: |
|
|
|
||||
Restructuring related inventory charges |
(1.1 |
) |
|
— |
|
||
Amortization of inventory step-up |
— |
|
|
— |
|
||
Restructuring charges, net |
5.0 |
|
|
1.1 |
|
||
Acquisition amortization |
11.2 |
|
|
11.7 |
|
||
Acquisition depreciation |
1.1 |
|
|
1.7 |
|
||
Special charges, net |
11.7 |
|
|
1.9 |
|
||
Income tax impact |
6.8 |
|
|
(1.9 |
) |
||
Net Income from discontinued operations |
84.7 |
|
|
2.9 |
|
||
ADJUSTED NET INCOME |
$ |
13.9 |
|
|
$ |
10.6 |
|
|
|
|
|
||||
EARNINGS (LOSS) PER COMMON SHARE (Diluted) |
$ |
(5.30 |
) |
|
$ |
(0.34 |
) |
LESS: |
|
|
|
||||
Restructuring related inventory charges |
(0.06 |
) |
|
— |
|
||
Amortization of inventory step-up |
— |
|
|
— |
|
||
Restructuring charges, net |
0.25 |
|
|
0.05 |
|
||
Acquisition amortization |
0.56 |
|
|
0.59 |
|
||
Acquisition depreciation |
0.05 |
|
|
0.09 |
|
||
Special charges, net |
0.58 |
|
|
0.10 |
|
||
Income tax impact |
0.29 |
|
|
(0.09 |
) |
||
Earnings Per Share from discontinued Operations |
4.25 |
|
|
0.14 |
|
||
ADJUSTED EARNINGS PER SHARE (Diluted) |
$ |
0.63 |
|
|
$ |
0.54 |
|
Numbers may not add due to rounding. |
CIRCOR INTERNATIONAL, INC. |
|||||||
|
2019 |
|
2018 |
||||
|
3RD QTR |
|
3RD QTR |
||||
NET (LOSS) INCOME |
$ |
(105.5 |
) |
|
$ |
(6.8 |
) |
LESS: |
|
|
|
||||
Interest Expense, net |
(11.8 |
) |
|
(14.1 |
) |
||
Depreciation & Amortization |
(17.2 |
) |
|
(18.6 |
) |
||
Benefit from (provision for) income taxes |
(7.5 |
) |
|
— |
|
||
Loss From Discontinued Operations |
(84.7 |
) |
|
(2.9 |
) |
||
|
|
|
|
||||
EBITDA |
15.7 |
|
|
28.7 |
|
||
LESS: |
|
|
|
||||
Restructuring charges, net |
(5.0 |
) |
|
(1.1 |
) |
||
Special charges, net |
(10.5 |
) |
|
(1.9 |
) |
||
ADJUSTED EBITDA |
$ |
31.2 |
|
|
$ |
31.7 |
|
Numbers may not add due to rounding. |
CIRCOR INTERNATIONAL, INC. |
|||||||
|
2019 |
|
2018 |
||||
|
3RD QTR |
|
3RD QTR |
||||
GAAP OPERATING INCOME (LOSS) |
$ |
(2.3 |
) |
|
$ |
8.5 |
|
LESS: |
|
|
|
||||
Restructuring related inventory charges |
(1.1 |
) |
|
— |
|
||
Amortization of inventory step-up |
— |
|
|
— |
|
||
Restructuring charges, net |
5.0 |
|
|
1.1 |
|
||
Acquisition amortization |
11.2 |
|
|
11.7 |
|
||
Acquisition depreciation |
1.1 |
|
|
1.7 |
|
||
Special charges, net |
11.7 |
|
|
1.9 |
|
||
ADJUSTED OPERATING INCOME |
$ |
25.6 |
|
|
$ |
25.0 |
|
|
|
|
|
||||
GAAP OPERATING MARGIN |
(1.0 |
)% |
|
3.5 |
% |
||
LESS: |
|
|
|
||||
Restructuring related inventory charges |
(0.5 |
)% |
|
— |
% |
||
Amortization of inventory step-up |
— |
% |
|
— |
% |
||
Restructuring charges, net |
2.1 |
% |
|
0.4 |
% |
||
Acquisition amortization |
4.7 |
% |
|
4.7 |
% |
||
Acquisition depreciation |
0.5 |
% |
|
0.7 |
% |
||
Special charges, net |
4.9 |
% |
|
0.8 |
% |
||
ADJUSTED OPERATING MARGIN |
10.8 |
% |
|
10.1 |
% |
||
Impact of Divestitures (a) |
0.2 |
% |
|
(0.8 |
)% |
||
ADJUSTED OPERATING MARGIN EXCLUDING DIVESTITURES |
11.0 |
% |
|
9.4 |
% |
||
Numbers may not add due to rounding. | |||||||
(a) Divested businesses include Reliability Services (Energy), Spence / Nicholson (Industrial) and Delden (Industrial) which were sold before September 29, 2019. Engineered Valves and Distributed Valves are discontinued operations and not reflected in the As Reported figures in accordance with US GAAP. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20191106005516/en/
Source:
David F. Mullen
Senior Vice President Finance
CIRCOR International
(781) 270-1200