UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 23, 2003
CIRCOR INTERNATIONAL, INC.
(Exact name of registrant as specified in charter)
| DELAWARE |
001-14962 |
04-3477276 | ||
| (State or other jurisdiction of incorporation) |
(Commission file number) |
(IRS employer identification no.) |
C/O CIRCOR, INC.
35 CORPORATE DRIVE, SUITE 290
BURLINGTON, MASSACHUSETTS 01803-4244
(Address of principal executive offices) (Zip Code)
(781) 270-1200
(Registrant’s telephone number, including area code)
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99.1 Press Release issued on April 23, 2003 by the Company
ITEM 9. Regulation FD Disclosure (information furnished pursuant to Item 12, “Disclosure of Results of Operations and Financial Condition”)
On April 23, 2003, CIRCOR International, Inc. (the “Company”) issued a press release, attached hereto as Exhibit 99.1, relative to the Company’s financial performance and results for the first quarter of fiscal year 2003. The Company’s current report on Form 8-K filed April 24, 2003 with the Securities and Exchange Commission, which is hereby amended, included the text of the press release but did not include the accompanying consolidated financial statements and supplemental information, which are also included in Exhibit 99.1 attached hereto, which were part of the press release. The consolidated financial statements and supplemental information were available on the investor relations section of the Company’s website on April 23, 2004.
In the press release and accompanying supplemental information, the Company uses the following non-GAAP financial measures: free cash flow, EBIT and EBITDA, adjusted for special charges. Management of the Company believes that free cash flow (defined as net cash flow from operating activities, less capital expenditures and dividends paid) is an important measure of its liquidity as well as its ability to service long-term debt, fund future growth and to provide a return to shareholders. EBIT (defined as operating income plus other (income) expense, net) and EBITDA, adjusted for special charges (defined as operating income plus other (income) expense, net plus depreciation plus amortization plus special charges) is provided because management believes these measurements are commonly used by investors and financial institutions to analyze and compare companies on the basis of operating performance. Free cash flow, EBIT and EBITDA, adjusted for special charges, are not measurements for financial performance under GAAP and should not be construed as a substitute for operating income, net income or cash flows. Free cash flow, EBIT and EBITDA, adjusted for special charges, as we have calculated here, may not necessarily be comparable to similarly titled measures used by other companies. A reconciliation of free cash flow, EBIT and EBITDA, adjusted for special charges, to the most directly comparable GAAP financial measure is provided in the supplemental information table titled “Reconciliation of Key Performance Measures to Commonly Used Generally Accepted Accounting Principle Terms.”
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CIRCOR INTERNATIONAL, INC. | ||||||
| Date: May 6, 2003 |
By: |
/s/ KENNETH W. SMITH | ||||
| Kenneth W. Smith | ||||||
| Vice President, Chief Financial Officer and Treasurer | ||||||
3
Exhibit Index
| Exhibit No. |
Description | |
| 99.1 |
Press Release dated April 23, 2003 (This exhibit supercedes the one previously furnished) |
4
Exhibit 99.1
FOR IMMEDIATE RELEASE
| Contact: |
Kenneth W. Smith | |
| Chief Financial Officer | ||
| CIRCOR International, Inc. | ||
| (781) 270-1200 |
CIRCOR Reports First Quarter Earnings of $0.25 Per Share
| • | Revenues rise 9.7% on strength of international oil and gas project activity |
| • | Orders and backlogs increase despite continued weakness in Instrumentation and Thermal Fluid Controls Products Segment |
| • | Cash Flow improves; net debt level at new low of 7.5% of net capitalization |
BURLINGTON, MA, April 23, 2003
CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and fluid control products for the instrumentation, fluid regulation and petrochemical markets, announced today results for the first quarter ended March 31, 2003. Net income for the first quarter of 2003 was $3.8 million, or $0.25 per diluted share, compared to $3.7 million, or $0.24 per share, for the 2002 first quarter, an increase of 4.2% in earnings per share. Revenues for the 2003 first quarter were $87.2 million, an increase of 9.7% from $79.5 million for the first quarter of 2002.
CIRCOR’s Chairman, President and Chief Executive Officer David A. Bloss, Sr. commented on the performance of the Company’s Petrochemical Products Segment, saying revenues increased 15.1% to $38.0 million from $33.0 million in the first quarter of 2002. Operating margin increased to 7.6% in the first quarter 2002 compared to 6.9%, before special charges, for last year’s first quarter. Bloss said, “Large projects within the international oil and gas markets continue to be rather robust and our market position seems to be improving as well. Meanwhile, North American oil field activity remains sluggish, but there was some drilling pickup in western Canada since the fourth quarter. Overall, we finished our first quarter with petrochemical segment orders up 5.8% and backlogs up 31.5% versus the first quarter last year.” Bloss added that the operating margin in the quarter was down sequentially from 10.2% in the fourth quarter of 2002, but said the Company expected the decrease because of a more favorable mix of shipments in the fourth quarter of last year. “We are tracking our plan of continuous cost reduction and expect to show steady improvement in segment results as the year progresses,” Bloss said.
Bloss indicated that soft economic conditions continued to affect the Company’s Instrumentation and Thermal Fluid Controls businesses. “Compared to the first quarter last year, this segment’s revenues, excluding recent acquisitions, decreased 0.7% from $46.4 million as revenues from general industrial and power generation markets declined. Orders fell 3.1% compared to last year, excluding recent acquisitions, and operating margin declined from 16.4% to 12.2%. “We expect these markets to remain relatively weak for most of 2003,” he said. Sequentially, revenues declined 2.3% to $49.1 million this quarter but, on a positive note, total orders increased 8.8% sequentially and backlog increased 4.4% during the quarter. Bloss also stated that this segment’s profitability increased slightly from the performance registered during the fourth quarter of 2002. “Although this segment’s profitability remains well below last year’s first quarter results due to weak market conditions, the sequential improvement to 12.2% operating margin shows that we
have made progress in managing our costs even as we consciously reduced inventories and incurred unabsorbed manufacturing costs,” noted Bloss. “We expect margin levels to continue to improve this year even if order rates from the end markets we serve remain at current levels.”
The Company’s free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) was $14.5 million, 3.8 times net income. At the end of the first quarter, net debt (debt less cash, cash equivalents, and marketable securities) had decreased to 7.5% of net capitalization (net debt divided by debt plus shareholders equity less cash, cash equivalents, and marketable securities). Bloss commented that, “Our cash flow was exceptionally strong this quarter as a result of our efforts to reduce the level of working capital needed to operate our businesses. Our higher cash and lower net debt position keeps us poised for acquisition opportunities, but we remain patient for opportunities in the high-value-added and growth segments of the fluid control industry.”
The Company is providing guidance for its second quarter results indicating that it expects earnings to be in the range of $0.23 to $0.27 per share.
CIRCOR International has scheduled a conference call to review its results for the first quarter 2003 on Thursday, April 24, 2003, at 10:00 a.m. ET. Interested parties may access the call by dialing (719) 457-2650. A replay of the call will be available from 1:00 p.m. ET on April 24, 2003, through midnight on Monday, April 28, 2003. To access the replay, interested parties should dial (719) 457-0820, and enter confirmation code # 496419 when prompted. The presentation slides that will be discussed in the conference call are expected to be available on Wednesday, April 23, 2003, by 6:00 p.m. ET. The presentation slides may be downloaded from the investor relations section of the CIRCOR Website: http://www.circor.com/investor/relation.htm. An audio recording of the conference call also is expected to be posted on the Company’s website by April 29, 2003.
CIRCOR International, Inc. is a leading provider of valves and fluid control products that allow customers around the world to use fluids safely and efficiently in the instrumentation, thermal fluid regulation and petrochemical markets. CIRCOR’s executive headquarters is located at 35 Corporate Drive, Burlington, MA 01803.
This press release contains certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (the “Act”) and releases issued by the Securities and Exchange Commission (SEC). The words “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. We believe that it is important to communicate our future expectations to our stockholders, and we, therefore, make forward-looking statements in reliance upon the safe harbor provisions of the Act. However, there may be events in the future that we are not able to accurately predict or control, and our actual results, performance or achievements may differ materially from the expectations we describe in our forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the cyclicality and highly competitive nature of some of our end markets, changes in the price of and demand for oil and gas in both domestic and international markets, variability of raw material and component pricing, fluctuations in foreign currency exchange rates, and our ability to continue operating our manufacturing facilities at efficient levels and to successfully implement our acquisition strategy. We advise you to read further about these and other risk factors set forth under the caption “Certain Risk Factors That May Affect Future Results” in our SEC filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| March 31, 2003 |
December 31, 2002 | |||||
| (unaudited) |
audited | |||||
| ASSETS |
||||||
| Current Assets: |
||||||
| Cash and cash equivalents |
$ |
51,419 |
$ |
38,382 | ||
| Marketable securities |
|
4,072 |
|
4,064 | ||
| Trade accounts receivable, less allowance for doubtful accounts of $2,016 and $2,041, respectively |
|
55,396 |
|
56,130 | ||
| Inventories |
|
106,070 |
|
110,287 | ||
| Prepaid expenses and other current assets |
|
6,165 |
|
4,262 | ||
| Deferred income taxes |
|
5,927 |
|
5,884 | ||
| Total Current Assets |
|
229,049 |
|
219,009 | ||
| Property, Plant and Equipment, net |
|
63,282 |
|
64,365 | ||
| Other Assets: |
||||||
| Goodwill, net of accumulated amortization of $17,040 |
|
100,834 |
|
100,419 | ||
| Other assets |
|
6,604 |
|
6,941 | ||
| Total Assets |
$ |
399,769 |
$ |
390,734 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||
| Current Liabilities: |
||||||
| Accounts payable |
$ |
29,143 |
$ |
26,769 | ||
| Accrued expenses and other current liabilities |
|
20,907 |
|
19,967 | ||
| Income taxes payable |
|
4,049 |
|
2,801 | ||
| Notes payable and current portion of long-term debt |
|
16,357 |
|
18,596 | ||
| Total Current Liabilities |
|
70,456 |
|
68,133 | ||
| Long-term Debt, net of current portion |
|
59,343 |
|
59,394 | ||
| Deferred Income Taxes |
|
4,019 |
|
3,934 | ||
| Other Noncurrent Liabilities |
|
11,661 |
|
10,605 | ||
| Minority Interest |
|
4,409 |
|
5,009 | ||
| Shareholders’ Equity: |
||||||
| Preferred stock, $.01 par value, 1,000,000 shares authorized; no shares issued and outstanding |
|
— |
|
— | ||
| Common stock, $.01 par value; 29,000,000 shares authorized; and 15,148,950 and 15,107,850 issued and outstanding, respectively |
|
151 |
|
151 | ||
| Additional paid-in capital |
|
204,469 |
|
203,952 | ||
| Retained earnings |
|
42,473 |
|
39,200 | ||
| Accumulated other comprehensive income (loss) |
|
2,788 |
|
356 | ||
| Total Shareholders’ Equity |
|
249,881 |
|
243,659 | ||
| Total Liabilities and Shareholders’ Equity |
$ |
399,769 |
$ |
390,734 | ||
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three Months Ended March 31, |
||||||||
| 2003 |
2002 |
|||||||
| (unaudited) |
(unaudited) |
|||||||
| Net revenues |
$ |
87,163 |
|
$ |
79,462 |
| ||
| Cost of revenues |
|
62,341 |
|
|
54,920 |
| ||
| GROSS PROFIT |
|
24,822 |
|
|
24,542 |
| ||
| Selling, general and administrative expenses |
|
17,638 |
|
|
16,489 |
| ||
| Special charges |
|
— |
|
|
453 |
| ||
| OPERATING INCOME |
|
7,184 |
|
|
7,600 |
| ||
| Other (income) expense: |
||||||||
| Interest income |
|
(102 |
) |
|
(233 |
) | ||
| Interest expense |
|
1,563 |
|
|
1,974 |
| ||
| Other, net |
|
(275 |
) |
|
102 |
| ||
| Total other expense |
|
1,186 |
|
|
1,843 |
| ||
| INCOME BEFORE INCOME TAXES |
|
5,998 |
|
|
5,757 |
| ||
| Provision for income taxes |
|
2,159 |
|
|
2,072 |
| ||
| NET INCOME |
$ |
3,839 |
|
$ |
3,685 |
| ||
| Earnings per common share: |
||||||||
| Basic |
$ |
0.25 |
|
$ |
0.25 |
| ||
| Diluted |
$ |
0.25 |
|
$ |
0.24 |
| ||
| Weighted average common shares outstanding: |
||||||||
| Basic |
|
15,116 |
|
|
14,873 |
| ||
| Diluted |
|
15,533 |
|
|
15,541 |
| ||
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Three Months Ended March 31, |
||||||||
| 2003 |
2002 |
|||||||
| (unaudited) |
(unaudited) |
|||||||
| OPERATING ACTIVITIES |
||||||||
| Net income |
$ |
3,839 |
|
$ |
3,685 |
| ||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation |
|
2,470 |
|
|
2,745 |
| ||
| Amortization of intangible assets |
|
74 |
|
|
79 |
| ||
| Compensation expense of stock-based plans |
|
60 |
|
|
132 |
| ||
| Loss on write-off of property, plant and equipment |
|
— |
|
|
260 |
| ||
| Deferred income taxes (benefit) |
|
(3 |
) |
|
115 |
| ||
| (Gain) loss on disposal of property, plant and equipment |
|
(1 |
) |
|
28 |
| ||
| Changes in operating assets and liabilities, net of effects from business acquisitions: |
||||||||
| Trade accounts receivable |
|
1,388 |
|
|
2,860 |
| ||
| Inventories |
|
5,314 |
|
|
(1,692 |
) | ||
| Prepaid expenses and other assets |
|
(1,584 |
) |
|
(1,753 |
) | ||
| Accounts payable, accrued expenses and other liabilities |
|
4,338 |
|
|
2,052 |
| ||
| Net cash provided by operating activities |
|
15,895 |
|
|
8,511 |
| ||
| INVESTING ACTIVITIES |
||||||||
| Additions to property, plant and equipment |
|
(795 |
) |
|
(863 |
) | ||
| Proceeds from disposal of property, plant and equipment |
|
1 |
|
|
8 |
| ||
| Increase in other assets |
|
— |
|
|
(20 |
) | ||
| Business acquisitions, net of cash acquired |
|
— |
|
|
(2,389 |
) | ||
| Other |
|
(8 |
) |
|
— |
| ||
| Net cash used in investing activities |
|
(802 |
) |
|
(3,264 |
) | ||
| FINANCING ACTIVITIES |
||||||||
| Proceeds from long-term borrowings |
|
144 |
|
|
— |
| ||
| Payments of long-term debt |
|
(2,555 |
) |
|
(2,544 |
) | ||
| Dividends paid |
|
(567 |
) |
|
(557 |
) | ||
| Proceeds from the exercise of stock options |
|
413 |
|
|
1,035 |
| ||
| Conversion of restricted stock units |
|
— |
|
|
3 |
| ||
| Net cash used in financing activities |
|
(2,565 |
) |
|
(2,063 |
) | ||
| Effect of exchange rate changes on cash and cash equivalents |
|
509 |
|
|
(30 |
) | ||
| INCREASE IN CASH AND CASH EQUIVALENTS |
|
13,037 |
|
|
3,154 |
| ||
| Cash and cash equivalents at beginning of year |
|
38,382 |
|
|
57,010 |
| ||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
51,419 |
|
$ |
60,164 |
| ||
CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in thousands)
(unaudited)
| Three Months Ended March 31, | ||||||
| 2003 |
2002 | |||||
| ORDERS |
||||||
| Instrumentation & Thermal Fluid Controls |
$ |
50,369 |
$ |
48,752 | ||
| Petrochemical |
|
43,426 |
|
41,054 | ||
| Total orders |
$ |
93,795 |
$ |
89,806 | ||
| March 31, | ||||||
| 2003 |
2002 | |||||
| BACKLOG |
||||||
| Instrumentation & Thermal Fluid Controls |
$ |
37,574 |
$ |
42,936 | ||
| Petrochemical |
|
43,774 |
|
33,276 | ||
| Total backlog |
$ |
81,348 |
$ |
76,212 | ||
Note: Backlog includes all unshipped customer orders.
CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share)
(unaudited)
| 2002 |
2003 |
|||||||||||||||||||||||
| 1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
YEAR |
1ST QTR |
|||||||||||||||||||
| NET REVENUES |
||||||||||||||||||||||||
| Instrumentation & Thermal Fluid Controls |
$ |
46,417 |
|
$ |
47,966 |
|
$ |
45,886 |
|
$ |
50,255 |
|
$ |
190,524 |
|
$ |
49,119 |
| ||||||
| Petrochemical |
|
33,045 |
|
|
34,575 |
|
|
37,206 |
|
|
36,098 |
|
|
140,924 |
|
|
38,044 |
| ||||||
| Total |
|
79,462 |
|
|
82,541 |
|
|
83,092 |
|
|
86,353 |
|
|
331,448 |
|
|
87,163 |
| ||||||
| OPERATING MARGIN |
||||||||||||||||||||||||
| Instrumentation & Thermal Fluid Controls |
|
16.4 |
% |
|
17.0 |
% |
|
14.9 |
% |
|
12.0 |
% |
|
15.0 |
% |
|
12.2 |
% | ||||||
| Petrochemical |
|
6.9 |
% |
|
4.5 |
% |
|
7.3 |
% |
|
10.2 |
% |
|
7.3 |
% |
|
7.6 |
% | ||||||
| Segment operating margin |
|
12.4 |
% |
|
11.7 |
% |
|
11.5 |
% |
|
11.2 |
% |
|
11.7 |
% |
|
10.2 |
% | ||||||
| Corporate expenses |
|
-2.3 |
% |
|
-2.5 |
% |
|
-2.2 |
% |
|
-2.2 |
% |
|
-2.3 |
% |
|
-1.9 |
% | ||||||
| Special charges |
|
-0.6 |
% |
|
-0.4 |
% |
|
— |
|
|
— |
|
|
-0.2 |
% |
|
— |
| ||||||
| Total operating margin |
|
9.6 |
% |
|
8.8 |
% |
|
9.2 |
% |
|
9.0 |
% |
|
9.2 |
% |
|
8.2 |
% | ||||||
| OPERATING INCOME |
||||||||||||||||||||||||
| Instrumentation & Thermal Fluid Controls |
|
7,607 |
|
|
8,138 |
|
|
6,845 |
|
|
6,024 |
|
|
28,614 |
|
|
5,982 |
| ||||||
| Petrochemical |
|
2,286 |
|
|
1,553 |
|
|
2,701 |
|
|
3,685 |
|
|
10,225 |
|
|
2,876 |
| ||||||
| Segment operating income |
|
9,893 |
|
|
9,691 |
|
|
9,546 |
|
|
9,709 |
|
|
38,839 |
|
|
8,858 |
| ||||||
| Corporate expenses |
|
(1,840 |
) |
|
(2,100 |
) |
|
(1,867 |
) |
|
(1,913 |
) |
|
(7,720 |
) |
|
(1,674 |
) | ||||||
| Special charges |
|
(453 |
) |
|
(292 |
) |
|
— |
|
|
— |
|
|
(745 |
) |
|
— |
| ||||||
| Total operating income w/ special charges |
|
7,600 |
|
|
7,299 |
|
|
7,679 |
|
|
7,796 |
|
|
30,374 |
|
|
7,184 |
| ||||||
| INTEREST EXPENSE, NET |
|
(1,741 |
) |
|
(1,681 |
) |
|
(1,755 |
) |
|
(1,544 |
) |
|
(6,721 |
) |
|
(1,461 |
) | ||||||
| OTHER (EXPENSE) INCOME, NET |
|
(102 |
) |
|
382 |
|
|
(34 |
) |
|
440 |
|
|
686 |
|
|
275 |
| ||||||
| PRETAX INCOME |
|
5,757 |
|
|
6,000 |
|
|
5,890 |
|
|
6,692 |
|
|
24,339 |
|
|
5,998 |
| ||||||
| PROVISION FOR INCOME TAXES |
|
(2,072 |
) |
|
(2,161 |
) |
|
(2,120 |
) |
|
(2,409 |
) |
|
(8,762 |
) |
|
(2,159 |
) | ||||||
| EFFECTIVE TAX RATE |
|
36.0 |
% |
|
36.0 |
% |
|
36.0 |
% |
|
36.0 |
% |
|
36.0 |
% |
|
36.0 |
% | ||||||
| NET INCOME |
$ |
3,685 |
|
$ |
3,839 |
|
$ |
3,770 |
|
$ |
4,283 |
|
$ |
15,577 |
|
$ |
3,839 |
| ||||||
| Weighted Average Common Shares Outstanding (Diluted) |
|
15,541 |
|
|
15,732 |
|
|
15,511 |
|
|
15,462 |
|
|
15,610 |
|
|
15,533 |
| ||||||
| EARNINGS PER COMMON SHARE (Diluted) |
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.28 |
|
$ |
1.00 |
|
$ |
0.25 |
| ||||||
| EARNINGS PER COMMON SHARE (Diluted) excluding special charges |
$ |
0.26 |
|
$ |
0.26 |
|
$ |
0.24 |
|
$ |
0.28 |
|
$ |
1.03 |
|
$ |
0.25 |
| ||||||
| EBIT |
$ |
7,498 |
|
$ |
7,681 |
|
$ |
7,645 |
|
$ |
8,236 |
|
$ |
31,060 |
|
$ |
7,459 |
| ||||||
| Special charges-Instrumentation & Thermal Fluid Controls |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| ||||||
| – Petrochemical |
|
453 |
|
|
292 |
|
|
— |
|
|
— |
|
|
745 |
|
|
— |
| ||||||
| Total special charges |
|
453 |
|
|
292 |
|
|
— |
|
|
— |
|
|
745 |
|
|
— |
| ||||||
| Depreciation |
|
2,745 |
|
|
2,672 |
|
|
2,452 |
|
|
2,474 |
|
|
10,343 |
|
|
2,470 |
| ||||||
| Amortization of intangibles |
|
79 |
|
|
79 |
|
|
74 |
|
|
75 |
|
|
307 |
|
|
74 |
| ||||||
| EBITDA AND SPECIAL CHARGES |
$ |
10,775 |
|
$ |
10,724 |
|
$ |
10,171 |
|
$ |
10,785 |
|
$ |
42,455 |
|
$ |
10,003 |
| ||||||
| EBITDA AS A PERCENT OF SALES |
|
13.6 |
% |
|
13.0 |
% |
|
12.2 |
% |
|
12.5 |
% |
|
12.8 |
% |
|
11.5 |
% | ||||||
| CAPITAL EXPENDITURES |
$ |
863 |
|
$ |
1,081 |
|
$ |
1,220 |
|
$ |
1,254 |
|
$ |
4,418 |
|
$ |
795 |
| ||||||
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands)
(unaudited)
| 2002 |
2003 |
|||||||||||||||||||||||
| 1ST QTR |
2ND QTR |
3RD QTR |
4TH QTR |
YEAR |
1ST QTR |
|||||||||||||||||||
| FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES LESS DIVIDENDS PAID] |
$ |
7,091 |
|
$ |
6,519 |
|
$ |
3,480 |
|
$ |
1,162 |
|
$ |
18,252 |
|
$ |
14,533 |
| ||||||
| ADD: Capital expenditures |
|
863 |
|
|
1,081 |
|
|
1,220 |
|
|
1,254 |
|
|
4,418 |
|
|
795 |
| ||||||
| Dividends paid |
|
557 |
|
|
565 |
|
|
566 |
|
|
567 |
|
|
2,255 |
|
|
567 |
| ||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
$ |
8,511 |
|
$ |
8,165 |
|
$ |
5,266 |
|
$ |
2,983 |
|
$ |
24,925 |
|
$ |
15,895 |
| ||||||
| NET DEBT [TOTAL DEBT LESS CASH AND CASH EQUIVALENTS LESS MARKETABLE SECURITIES] |
$ |
34,791 |
|
$ |
26,853 |
|
$ |
22,648 |
|
$ |
35,543 |
|
$ |
35,543 |
|
$ |
20,209 |
| ||||||
| ADD: Cash and cash equivalents |
|
60,164 |
|
|
67,555 |
|
|
69,697 |
|
|
38,382 |
|
|
38,382 |
|
|
51,419 |
| ||||||
| Marketable securities |
|
— |
|
|
— |
|
|
— |
|
|
4,064 |
|
|
4,064 |
|
|
4,072 |
| ||||||
| TOTAL DEBT |
$ |
94,955 |
|
$ |
94,408 |
|
$ |
92,345 |
|
$ |
77,990 |
|
$ |
77,990 |
|
$ |
75,700 |
| ||||||
| NET DEBT AS % OF NET CAPITALIZATION |
|
13.3 |
% |
|
10.2 |
% |
|
8.7 |
% |
|
12.7 |
% |
|
12.7 |
% |
|
7.5 |
% | ||||||
| NET DEBT [As defined above] |
$ |
34,791 |
|
$ |
26,853 |
|
$ |
22,648 |
|
$ |
35,543 |
|
$ |
35,543 |
|
$ |
20,209 |
| ||||||
| ADD: Cash and cash equivalents |
|
60,164 |
|
|
67,555 |
|
|
69,697 |
|
|
38,382 |
|
|
38,382 |
|
|
51,419 |
| ||||||
| Marketable securities |
|
— |
|
|
— |
|
|
— |
|
|
4,064 |
|
|
4,064 |
|
|
4,072 |
| ||||||
| TOTAL DEBT |
$ |
94,955 |
|
$ |
94,408 |
|
$ |
92,345 |
|
$ |
77,990 |
|
$ |
77,990 |
|
$ |
75,700 |
| ||||||
| NET CAPITALIZATION [TOTAL DEBT PLUS SHAREHOLDERS’ EQUITY LESS CASH AND CASH EQUIVALENTS LESS MARKETABLE SECURITIES] |
$ |
261,622 |
|
$ |
262,783 |
|
$ |
259,514 |
|
$ |
279,202 |
|
$ |
279,202 |
|
$ |
270,090 |
| ||||||
| ADD: Debt |
|
(94,955 |
) |
|
(94,408 |
) |
|
(92,345 |
) |
|
(77,990 |
) |
|
(77,990 |
) |
|
(75,700 |
) | ||||||
| LESS: Cash and cash equivalents |
|
60,164 |
|
|
67,555 |
|
|
69,697 |
|
|
38,382 |
|
|
38,382 |
|
|
51,419 |
| ||||||
| Marketable securities |
|
— |
|
|
— |
|
|
— |
|
|
4,064 |
|
|
4,064 |
|
|
4,072 |
| ||||||
| TOTAL SHAREHOLDERS’ EQUITY |
$ |
226,831 |
|
$ |
235,930 |
|
$ |
236,866 |
|
$ |
243,659 |
|
$ |
243,659 |
|
$ |
249,881 |
| ||||||
| TOTAL DEBT / TOTAL EQUITY |
|
41.9 |
% |
|
40.0 |
% |
|
39.0 |
% |
|
32.0 |
% |
|
32.0 |
% |
|
30.3 |
% | ||||||
| EBIT [OPERATING INCOME PLUS OTHER NET (INCOME) EXPENSE] |
$ |
7,498 |
|
$ |
7,681 |
|
$ |
7,645 |
|
$ |
8,236 |
|
$ |
31,060 |
|
$ |
7,459 |
| ||||||
| ADD: Other (income) expense, net |
|
102 |
|
|
(382 |
) |
|
34 |
|
|
(440 |
) |
|
(686 |
) |
|
(275 |
) | ||||||
| OPERATING INCOME |
$ |
7,600 |
|
$ |
7,299 |
|
$ |
7,679 |
|
$ |
7,796 |
|
$ |
30,374 |
|
$ |
7,184 |
| ||||||
| EBITDA AND SPECIAL CHARGES [OPERATING INCOME PLUS OTHER NET (INCOME) EXPENSE PLUS DEPRECIATION PLUS AMORTIZATION PLUS SPECIAL CHARGES] |
$ |
10,775 |
|
$ |
10,724 |
|
$ |
10,171 |
|
$ |
10,785 |
|
$ |
42,455 |
|
$ |
10,003 |
| ||||||
| LESS: Special charges |
|
(453 |
) |
|
(292 |
) |
|
— |
|
|
— |
|
|
(745 |
) |
|
— |
| ||||||
| Other (income) expense, net |
|
102 |
|
|
(382 |
) |
|
34 |
|
|
(440 |
) |
|
(686 |
) |
|
(275 |
) | ||||||
| Depreciation |
|
(2,745 |
) |
|
(2,672 |
) |
|
(2,452 |
) |
|
(2,474 |
) |
|
(10,343 |
) |
|
(2,470 |
) | ||||||
| Amortization of intangibles |
|
(79 |
) |
|
(79 |
) |
|
(74 |
) |
|
(75 |
) |
|
(307 |
) |
|
(74 |
) | ||||||
| OPERATING INCOME |
$ |
7,600 |
|
$ |
7,299 |
|
$ |
7,679 |
|
$ |
7,796 |
|
$ |
30,374 |
|
$ |
7,184 |
| ||||||