UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 1, 2007
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.) |
25 CORPORATE DRIVE, SUITE 130
BURLINGTON, MASSACHUSETTS 01803-4238
(Address of principal executive offices) (Zip Code)
(781) 270-1200
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR240.13e-4(c)) |
| Item 2.02 | Results of Operations and Financial Condition |
By press release dated August 1, 2007, the Company announced its financial results for the three and six months ended July 1, 2007. The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this form 8-K and the Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by special reference in such filing.
In the press release and accompanying supplemental information, the Company uses the following non-GAAP financial measures: free cash flow, EBIT, EBITDA, and earnings per share excluding 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 net income plus interest expense, net plus provision for income taxes), EBITDA (defined as net income plus interest expense, net plus provision for income taxes, plus depreciation and amortization) and earnings per share excluding special charges (defined as earnings per common share, excluding the impact of special charges, net of tax) 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, EBITDA, and earnings per share excluding special charges are not measurements for financial performance under GAAP and should not be construed as a substitute for cash flows, operating income, net income or earnings per share. Free cash flow, EBIT, EBITDA, and earnings per share excluding 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, EBITDA, and earnings per share excluding 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” which is included as an attachment to the press release.
| Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits
| Exhibit No. |
Description | |
| 99.1 |
Press Release regarding Earnings, Dated August 1, 2007 |
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.
| Date: August 3, 2007 | CIRCOR INTERNATIONAL, INC. | |||
| By: | /s/ Kenneth W. Smith | |||
| Kenneth W. Smith | ||||
| Senior Vice President, Chief Financial Officer and Treasurer | ||||
3
EXHIBIT 99.1
PRESS RELEASE
| Contact: | Kenneth W. Smith | |
| Chief Financial Officer | ||
| CIRCOR International, Inc. | ||
| (781) 270-1200 |
CIRCOR Announces Record Second Quarter Earnings of $0.60 per share
| • | Company posts new records for orders and backlog. |
| • | Operational performance improves in both segments. |
| • | End markets remain healthy, raising expectations for second half results. |
Burlington, MA, August 1, 2007
CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other fluid control devices for the instrumentation, aerospace, thermal fluid and energy markets, today announced results for the second quarter and six months ended July 1, 2007.
Revenues for the 2007 second quarter were $165.9 million, an increase of 15% from $144.4 million for the second quarter 2006 period. Net income for the second quarter of 2007 increased 55% to $10.0 million, or $0.60 per diluted share, which included $0.03 per diluted share of special charges primarily related to the consolidation of manufacturing facilities. Net income for the second quarter of 2006 was $6.5 million, or $0.40 per diluted share.
For the six months ended July 1, 2007, revenues were $327.2 million, an increase of 20% from $271.7 million for the comparable period in 2006. Net income for the first half of 2007 was $17.4 million, or $1.05 per diluted share, an increase of 50% from $11.6 million, or $0.71 per diluted share, in the same period last year. Results for the first half of 2007 include $0.05 per diluted share of special charges.
The Company received a record level of orders totaling $228.4 million during the second quarter of 2007, increasing 18% over the second quarter of 2006, and a 22% increase from the first quarter of 2007. For the first six months of 2007, orders totaled $415.2 million with July 1, 2007, backlog reaching another record level of $373.7 million, representing increases of 5% and 28%, respectively, over the same periods in 2006.
During the second quarter of 2007, the Company generated $5.4 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) and, for the first six months of 2007, the Company had positive free cash flow of less than $0.1 million despite higher working capital needed to support the Company’s record orders and backlog. This compares favorably to the first six months of 2006 during which the Company used $4.8 million of free cash flow. The improvement from 2006 largely resulted from the sharp increase in profitability.
Circor’s Instrumentation and Thermal Fluid Controls Products segment revenues increased 8% to $85.7 million from $79.5 million in the second quarter of 2006. Incoming orders for this segment were a quarterly record $99.1 million, while this segment’s backlog at July 1, 2007, reached a record $130.2 million, a 15% increase from one year ago, and an 11% increase from the end of the first quarter of 2007. This segment’s operating margin for the second quarter was 8.7% excluding special charges for a U.S. facility closure, compared to the 8.6% operating margin achieved in the second quarter of 2006. However, the second quarter margin represented an 80 basis point increase from the first quarter of 2007, excluding special charges, reflecting higher unit shipments and improved pricing.
Circor’s Energy Products segment revenues increased 24% to $80.2 million from $64.9 million in the second quarter of last year. Incoming orders for the quarter were $129.3 million and ending backlog totaled another record at $243.5 million compared to incoming orders of $113.4 million and ending backlog of $179.1 million in the same periods last year. This segment’s operating margin reached a record 16.3% during the second quarter of 2007 compared to 11.4% for the second quarter of 2006, reflecting shipments of high-margin projects.
David A. Bloss, Sr., Circor’s Chairman and Chief Executive Officer, said, “Oil and gas exploration and processing activity has once again exceeded our expectations this past quarter, despite some softness experienced in Western Canada. Our profitability also benefited from a favorable mix of international project shipments as well as increased sourcing from our facility in China and productivity improvements worldwide. We expect to see this strong market activity continue into 2008 with some dampening effect for near-term seasonal wet weather conditions in North America and for distributor inventory replenishment cycles, since they are now approaching target on-hand quantity levels.”
Mr. Bloss continued, “Results for our Instrumentation and Thermal Fluid Control Products segment were in line with our expectations. The primary markets for this segment are showing mixed trends, but are positive overall due to the strength of the general aviation and European industrial process controls sectors. Operating margins for this segment improved from the first quarter trough and we expect to post quarterly improvements going forward as our cost reduction and customer delivery performance initiatives continue to be realized with stronger leadership in place at all major facilities.”
Circor provided guidance for its third quarter 2007 results, indicating it expects earnings to be in the range of $0.53 to $0.56 per diluted share, with no expected special charges. The guidance compares favorably to earnings in the third quarter of 2006 of $0.45 per diluted share, but is lower than second quarter 2007 results due to an anticipated less-favorable mix of product revenues within the Energy Products segment that will be partially offset by higher operational performance of the Instrumentation and Thermal Fluid Controls Products segment.
CIRCOR International has scheduled a conference call to review its results for the second quarter of 2007 tomorrow, August 2, 2007, at 10:30 am ET. Interested parties may access the call by dialing (800) 289-0544 from the US and Canada and (913) 981-5533 from international locations. A replay of the call will be available from 1:30 pm ET on August 2, 2007, through midnight on August 8, 2007. To access the replay, interested parties should dial (888) 203-1112 or (719) 457-0820 and enter confirmation code # 4597912 when prompted. The presentation
slides that will be discussed in the conference call are expected to be available on Wednesday, August 1, 2007, by 6:00 pm ET. The presentation slides may be downloaded from the quarterly earnings page of the investor section on the CIRCOR website: http://www.circor.com/quarterlyearnings/. An audio recording of the conference call also is expected to be posted on the company’s website by August 6, 2007.
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. 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, 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.
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
UNAUDITED
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 1, 2007 | July 2, 2006 | July 1, 2007 | July 2, 2006 | |||||||||||||
| Net revenues |
$ | 165,937 | $ | 144,389 | $ | 327,200 | $ | 271,684 | ||||||||
| Cost of revenues |
116,116 | 102,268 | 232,587 | 191,225 | ||||||||||||
| GROSS PROFIT |
49,821 | 42,121 | 94,613 | 80,459 | ||||||||||||
| Selling, general and administrative expenses |
33,376 | 31,409 | 65,464 | 61,259 | ||||||||||||
| Special charges |
615 | — | 1,305 | — | ||||||||||||
| OPERATING INCOME |
15,830 | 10,712 | 27,844 | 19,200 | ||||||||||||
| Other (income) expense: |
||||||||||||||||
| Interest income |
(77 | ) | (89 | ) | (130 | ) | (197 | ) | ||||||||
| Interest expense |
961 | 1,553 | 2,232 | 2,686 | ||||||||||||
| Other (income) expense, net |
214 | (248 | ) | 118 | (380 | ) | ||||||||||
| Total other expense |
1,098 | 1,216 | 2,220 | 2,109 | ||||||||||||
| INCOME BEFORE INCOME TAXES |
14,732 | 9,496 | 25,624 | 17,091 | ||||||||||||
| Provision for income taxes |
4,714 | 3,038 | 8,200 | 5,469 | ||||||||||||
| NET INCOME |
$ | 10,018 | $ | 6,458 | $ | 17,424 | $ | 11,622 | ||||||||
| Earnings per common share: |
||||||||||||||||
| Basic |
$ | 0.61 | $ | 0.40 | $ | 1.07 | $ | 0.73 | ||||||||
| Diluted |
$ | 0.60 | $ | 0.40 | $ | 1.05 | $ | 0.71 | ||||||||
| Weighted average common shares outstanding: |
||||||||||||||||
| Basic |
16,390 | 15,968 | 16,301 | 15,911 | ||||||||||||
| Diluted |
16,679 | 16,332 | 16,582 | 16,266 | ||||||||||||
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
| Six Months Ended | ||||||||
| July 1, 2007 | July 2, 2006 | |||||||
| OPERATING ACTIVITIES |
||||||||
| Net income |
$ | 17,424 | $ | 11,622 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation |
5,620 | 5,788 | ||||||
| Amortization |
1,258 | 1,082 | ||||||
| Compensation expense of stock-based plans |
1,711 | 1,580 | ||||||
| Tax effect of share based compensation |
(2,065 | ) | (957 | ) | ||||
| Loss on sale of assets held for sale |
210 | — | ||||||
| Gain on disposal of property, plant and equipment |
(28 | ) | (80 | ) | ||||
| Equity in undistributed income of affiliates |
43 | (8 | ) | |||||
| Changes in operating assets and liabilities, net of effects from business acquisitions: |
||||||||
| Trade accounts receivable |
938 | (8,472 | ) | |||||
| Inventories |
(15,276 | ) | (24,471 | ) | ||||
| Prepaid expenses and other assets |
(6,927 | ) | (1,213 | ) | ||||
| Accounts payable, accrued expenses and other liabilities |
2,367 | 14,833 | ||||||
| Net cash provided by (used in) operating activities |
5,275 | (296 | ) | |||||
| INVESTING ACTIVITIES |
||||||||
| Additions to property, plant and equipment |
(4,042 | ) | (3,320 | ) | ||||
| Proceeds from disposal of property, plant and equipment |
412 | 304 | ||||||
| Proceeds from sale of assets held for sale |
508 | 100 | ||||||
| Business acquisitions, net of cash acquired |
— | (60,989 | ) | |||||
| Purchase of investments |
— | (5,734 | ) | |||||
| Proceeds from sale of investments |
— | 3,195 | ||||||
| Net cash used in investing activities |
(3,122 | ) | (66,444 | ) | ||||
| FINANCING ACTIVITIES |
||||||||
| Proceeds from debt borrowings |
45,994 | 65,547 | ||||||
| Payments of debt |
(55,616 | ) | (7,038 | ) | ||||
| Dividends paid |
(1,223 | ) | (1,195 | ) | ||||
| Proceeds from the exercise of stock options |
2,611 | 1,708 | ||||||
| Tax effect of share based compensation |
2,065 | 957 | ||||||
| Net cash (used in) provided by financing activities |
(6,169 | ) | 59,979 | |||||
| Effect of exchange rate changes on cash and cash equivalents |
645 | 1,615 | ||||||
| DECREASE IN CASH AND CASH EQUIVALENTS |
(3,371 | ) | (5,146 | ) | ||||
| Cash and cash equivalents at beginning of year |
28,652 | 31,112 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ | 25,281 | $ | 25,966 | ||||
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
UNAUDITED
| July 1, 2007 | December 31, 2006 | |||||
| ASSETS |
||||||
| Current Assets: |
||||||
| Cash & cash equivalents |
$ | 25,281 | $ | 28,652 | ||
| Investments |
94 | 86 | ||||
| Trade accounts receivable, less allowance for doubtful accounts of $ 2,842 and $2,523, respectively |
109,054 | 108,689 | ||||
| Inventories |
167,420 | 150,160 | ||||
| Prepaid expenses and other current assets |
10,258 | 2,926 | ||||
| Deferred income taxes |
6,649 | 7,305 | ||||
| Assets held for sale |
2,647 | 3,132 | ||||
| Total Current Assets |
321,403 | 300,950 | ||||
| Property, Plant and Equipment, net |
77,927 | 79,039 | ||||
| Other Assets: |
||||||
| Goodwill |
165,099 | 163,720 | ||||
| Intangibles, net |
48,599 | 49,226 | ||||
| Other assets |
12,792 | 12,740 | ||||
| Total Assets |
$ | 625,820 | $ | 605,675 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||
| Current Liabilities: |
||||||
| Accounts payable |
$ | 78,913 | $ | 71,788 | ||
| Accrued expenses and other current liabilities |
48,165 | 54,359 | ||||
| Accrued compensation and benefits |
17,176 | 15,325 | ||||
| Income taxes payable |
3,259 | 6,027 | ||||
| Notes payable and current portion of long-term debt |
238 | 415 | ||||
| Total Current Liabilities |
147,751 | 147,914 | ||||
| Long-Term Debt, net of current portion |
54,985 | 64,411 | ||||
| Deferred Income Taxes |
22,880 | 21,674 | ||||
| Other Non-Current Liabilities |
14,666 | 14,375 | ||||
| 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 16,442,319 and 16,181,070 issued and outstanding, respectively |
164 | 162 | ||||
| Additional paid-in capital |
230,599 | 224,508 | ||||
| Retained earnings |
125,398 | 109,251 | ||||
| Accumulated other comprehensive income |
29,377 | 23,380 | ||||
| Total Shareholders’ Equity |
385,538 | 357,301 | ||||
| Total Liabilities and Shareholders’ Equity |
$ | 625,820 | $ | 605,675 | ||
CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in thousands)
UNAUDITED
| Three Months Ended | Six Months Ended | |||||||||||||
| July 1, 2007 | July 2, 2006 | July 1, 2007 | July 2, 2006 | |||||||||||
| ORDERS |
||||||||||||||
| Instrumentation & Thermal Fluid Controls |
$ | 99,057 | $ | 80,218 | * | $ | 183,828 | $ | 165,706 | * | ||||
| Energy Products |
129,345 | 113,440 | 231,416 | 229,419 | ||||||||||
| Total orders |
$ | 228,402 | $ | 193,658 | $ | 415,244 | $ | 395,125 | ||||||
| July 1, 2007 | December 31, 2006 | |||||||||||||
| BACKLOG |
||||||||||||||
| Instrumentation & Thermal Fluid Controls |
$ | 130,224 | $ | 113,434 | ||||||||||
| Energy Products |
243,490 | 172,235 | ||||||||||||
| Total backlog |
$ | 373,714 | $ | 285,669 | ||||||||||
Note: Backlog includes all unshipped customer orders.
| * | Orders for the Instrumentation & Thermal Fluid Controls Products segment have been reduced by $2,489 and $4,265 for the 3-months ended July 2, 2006 and the 6-months ended July 2, 2006, respectively, for the sale in December 2006 of the small, French business, Societe Alsacienne Regulaves Thermiques von Rohr (“Sart”). |
CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share)
UNAUDITED
| 2006 | 2007 | |||||||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | YTD | 1ST QTR | 2ND QTR | YTD | |||||||||||||||||||||||||
| NET REVENUES |
||||||||||||||||||||||||||||||||
| Instrumentation & Thermal Fluid Controls (TFC) |
$ | 72,434 | $ | 79,470 | $ | 79,205 | $ | 81,591 | $ | 312,700 | $ | 81,296 | $ | 85,740 | $ | 167,036 | ||||||||||||||||
| Energy Products |
54,861 | 64,919 | 71,207 | 88,024 | 279,011 | 79,967 | 80,197 | 160,164 | ||||||||||||||||||||||||
| Total |
127,295 | 144,389 | 150,412 | 169,615 | 591,711 | 161,263 | 165,937 | 327,200 | ||||||||||||||||||||||||
| OPERATING MARGIN |
||||||||||||||||||||||||||||||||
| Instrumentation & TFC |
9.1 | % | 8.6 | % | 9.5 | % | 8.2 | % | 8.8 | % | 7.9 | % | 8.7 | % | 8.3 | % | ||||||||||||||||
| Energy Products |
10.4 | % | 11.4 | % | 13.2 | % | 15.7 | % | 13.0 | % | 12.7 | % | 16.3 | % | 14.5 | % | ||||||||||||||||
| Segment operating margin |
9.7 | % | 9.9 | % | 11.3 | % | 12.1 | % | 10.8 | % | 10.3 | % | 12.4 | % | 11.3 | % | ||||||||||||||||
| Corporate expenses |
-3.0 | % | -2.5 | % | -2.8 | % | -2.4 | % | -2.7 | % | -2.4 | % | -2.4 | % | -2.4 | % | ||||||||||||||||
| Special charges |
0.0 | % | 0.0 | % | -0.3 | % | -0.1 | % | -0.1 | % | -0.4 | % | -0.4 | % | -0.4 | % | ||||||||||||||||
| Total operating margin |
6.7 | % | 7.4 | % | 8.1 | % | 9.5 | % | 8.0 | % | 7.4 | % | 9.5 | % | 8.5 | % | ||||||||||||||||
| OPERATING INCOME |
||||||||||||||||||||||||||||||||
| Instrumentation & TFC (excl. special & unusual charges) |
6,595 | 6,861 | 7,522 | 6,680 | 27,658 | 6,433 | 7,438 | 13,871 | ||||||||||||||||||||||||
| Energy Products (excl. special & unusual charges) |
5,702 | 7,429 | 9,420 | 13,797 | 36,348 | 10,125 | 13,063 | 23,188 | ||||||||||||||||||||||||
| Segment operating income (excl. special & unusual charges) |
12,297 | 14,290 | 16,942 | 20,477 | 64,006 | 16,558 | 20,501 | 37,059 | ||||||||||||||||||||||||
| Corporate expenses |
(3,809 | ) | (3,578 | ) | (4,284 | ) | (4,146 | ) | (15,817 | ) | (3,853 | ) | (4,056 | ) | (7,909 | ) | ||||||||||||||||
| Special charges |
— | (479 | ) | (200 | ) | (679 | ) | (691 | ) | (615 | ) | (1,306 | ) | |||||||||||||||||||
| Total operating income |
8,488 | 10,712 | 12,179 | 16,131 | 47,510 | 12,014 | 15,830 | 27,844 | ||||||||||||||||||||||||
| INTEREST EXPENSE, NET |
(1,024 | ) | (1,464 | ) | (1,383 | ) | (1,246 | ) | (5,117 | ) | (1,218 | ) | (884 | ) | (2,102 | ) | ||||||||||||||||
| OTHER (EXPENSE) INCOME, NET |
131 | 248 | (27 | ) | (486 | ) | (134 | ) | 97 | (214 | ) | (117 | ) | |||||||||||||||||||
| PRETAX INCOME |
7,595 | 9,496 | 10,769 | 14,399 | 42,259 | 10,893 | 14,732 | 25,625 | ||||||||||||||||||||||||
| PROVISION FOR INCOME TAXES |
(2,431 | ) | (3,038 | ) | (3,446 | ) | (4,016 | ) | (12,931 | ) | (3,486 | ) | (4,714 | ) | (8,200 | ) | ||||||||||||||||
| EFFECTIVE TAX RATE |
32.0 | % | 32.0 | % | 32.0 | % | 27.9 | % | 30.6 | % | 32.0 | % | 32.0 | % | 32.0 | % | ||||||||||||||||
| NET INCOME |
$ | 5,164 | $ | 6,458 | $ | 7,323 | $ | 10,383 | $ | 29,328 | $ | 7,407 | $ | 10,018 | $ | 17,425 | ||||||||||||||||
| Weighted Average Common Shares Outstanding (Diluted) |
16,197 | 16,332 | 16,368 | 16,438 | 16,291 | 16,533 | 16,679 | 16,582 | ||||||||||||||||||||||||
| EARNINGS PER COMMON SHARE (Diluted) |
$ | 0.32 | $ | 0.40 | $ | 0.45 | $ | 0.63 | $ | 1.80 | $ | 0.45 | $ | 0.60 | $ | 1.05 | ||||||||||||||||
| EARNINGS PER COMMON SHARE (Diluted) excluding special charges |
$ | 0.32 | $ | 0.40 | $ | 0.47 | $ | 0.64 | $ | 1.83 | $ | 0.48 | $ | 0.63 | $ | 1.10 | ||||||||||||||||
| EBIT |
$ | 8,619 | $ | 10,960 | $ | 12,152 | $ | 15,645 | $ | 47,376 | $ | 12,111 | $ | 15,616 | $ | 27,727 | ||||||||||||||||
| Depreciation |
2,619 | 3,169 | 2,901 | 2,517 | 11,206 | 2,808 | 2,812 | 5,620 | ||||||||||||||||||||||||
| Amortization of intangibles |
515 | 567 | 709 | 603 | 2,394 | 626 | 632 | 1,258 | ||||||||||||||||||||||||
| EBITDA |
$ | 11,753 | $ | 14,696 | $ | 15,762 | $ | 18,765 | $ | 60,976 | $ | 15,545 | $ | 19,060 | $ | 34,605 | ||||||||||||||||
| EBITDA AS A PERCENT OF SALES |
9.2 | % | 10.2 | % | 10.5 | % | 11.1 | % | 10.3 | % | 9.6 | % | 11.5 | % | 10.6 | % | ||||||||||||||||
| CAPITAL EXPENDITURES |
$ | 1,578 | $ | 1,742 | $ | 3,823 | $ | 2,790 | $ | 9,933 | $ | 1,776 | $ | 2,266 | $ | 4,042 | ||||||||||||||||
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED
GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands)
UNAUDITED
| 2006 | 2007 | |||||||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | YTD | 1ST QTR | 2ND QTR | YTD | |||||||||||||||||||||||||
| FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES LESS DIVIDENDS PAID] |
$ | (5,213 | ) | $ | 402 | $ | 8,865 | $ | 13,476 | $ | 17,530 | $ | (5,429 | ) | $ | 5,439 | $ | 10 | ||||||||||||||
| ADD: Capital expenditures |
1,578 | 1,742 | 3,823 | 2,790 | 9,933 | 1,776 | 2,266 | 4,042 | ||||||||||||||||||||||||
| Dividends paid |
595 | 600 | 600 | 600 | 2,395 | 609 | 614 | 1,223 | ||||||||||||||||||||||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
$ | (3,040 | ) | $ | 2,744 | $ | 13,288 | $ | 16,866 | $ | 29,858 | $ | (3,044 | ) | $ | 8,319 | $ | 5,275 | ||||||||||||||
| NET (CASH) DEBT [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS] |
$ | 68,271 | $ | 64,336 | $ | 55,157 | $ | 36,088 | $ | 36,088 | $ | 39,366 | $ | 29,848 | $ | 29,848 | ||||||||||||||||
| ADD: Cash & cash equivalents |
27,069 | 25,966 | 33,265 | 28,652 | 28,652 | 27,050 | 25,281 | 25,281 | ||||||||||||||||||||||||
| Investments |
— | 2,639 | 90 | 86 | 86 | 87 | 94 | 94 | ||||||||||||||||||||||||
| TOTAL DEBT |
$ | 95,340 | $ | 92,941 | $ | 88,512 | $ | 64,826 | $ | 64,826 | $ | 66,503 | $ | 55,223 | $ | 55,223 | ||||||||||||||||
| NET DEBT AS % OF NET CAPITALIZATION |
17.7 | % | 16.2 | % | 13.9 | % | 9.2 | % | 9.2 | % | 9.6 | % | 7.2 | % | 7.2 | % | ||||||||||||||||
| NET CAPITALIZATION [TOTAL DEBT PLUS SHAREHOLDERS’ EQUITY LESS CASH & CASH EQUIVALENTS, LESS INVESTMENTS] |
$ | 385,659 | $ | 397,814 | $ | 397,012 | $ | 393,389 | $ | 393,389 | $ | 408,944 | $ | 415,386 | $ | 415,386 | ||||||||||||||||
| LESS: Total debt |
(95,340 | ) | (92,941 | ) | (88,512 | ) | (64,826 | ) | (64,826 | ) | (66,503 | ) | (55,223 | ) | (55,223 | ) | ||||||||||||||||
| ADD: Cash & cash equivalents |
27,069 | 25,966 | 33,265 | 28,652 | 28,652 | 27,050 | 25,281 | 25,281 | ||||||||||||||||||||||||
| Investments |
— | 2,639 | 90 | 86 | 86 | 87 | 94 | 94 | ||||||||||||||||||||||||
| TOTAL SHAREHOLDERS’ EQUITY |
317,388 | 333,478 | 341,855 | 357,301 | 357,301 | 369,578 | 385,538 | 385,538 | ||||||||||||||||||||||||
| ADD: Total debt |
95,340 | 92,941 | 88,512 | 64,826 | 64,826 | 66,503 | 55,223 | 55,223 | ||||||||||||||||||||||||
| TOTAL CAPITAL |
$ | 412,728 | $ | 426,419 | $ | 430,367 | $ | 422,127 | $ | 422,127 | $ | 436,081 | $ | 440,761 | $ | 440,761 | ||||||||||||||||
| TOTAL DEBT / TOTAL CAPITAL |
23.1 | % | 21.8 | % | 20.6 | % | 15.4 | % | 15.4 | % | 15.3 | % | 12.5 | % | 12.5 | % | ||||||||||||||||
| EBIT [NET INCOME LESS INTEREST EXPENSE, NET] |
$ | 8,619 | $ | 10,960 | $ | 12,152 | $ | 15,645 | $ | 47,376 | $ | 12,111 | $ | 15,616 | $ | 27,727 | ||||||||||||||||
| LESS: Interest expense, net |
(1,024 | ) | (1,464 | ) | (1,383 | ) | (1,246 | ) | (5,117 | ) | (1,218 | ) | (884 | ) | (2,102 | ) | ||||||||||||||||
| Provision for income taxes |
(2,431 | ) | (3,038 | ) | (3,446 | ) | (4,016 | ) | (12,931 | ) | (3,486 | ) | (4,714 | ) | (8,200 | ) | ||||||||||||||||
| NET INCOME |
$ | 5,164 | $ | 6,458 | $ | 7,323 | $ | 10,383 | $ | 29,328 | $ | 7,407 | $ | 10,018 | $ | 17,425 | ||||||||||||||||
| EBITDA [NET INCOME LESS INTEREST EXPENSE, NET LESS DEPRECIATION LESS AMORTIZATION LESS TAXES] |
$ | 11,753 | $ | 14,696 | $ | 15,762 | $ | 18,765 | $ | 60,976 | $ | 15,545 | $ | 19,060 | $ | 34,605 | ||||||||||||||||
| LESS: |
||||||||||||||||||||||||||||||||
| Interest expense, net |
(1,024 | ) | (1,464 | ) | (1,383 | ) | (1,246 | ) | (5,117 | ) | (1,218 | ) | (884 | ) | (2,102 | ) | ||||||||||||||||
| Depreciation |
(2,619 | ) | (3,169 | ) | (2,901 | ) | (2,517 | ) | (11,206 | ) | (2,808 | ) | (2,812 | ) | (5,620 | ) | ||||||||||||||||
| Amortization of intangibles |
(515 | ) | (567 | ) | (709 | ) | (603 | ) | (2,394 | ) | (626 | ) | (632 | ) | (1,258 | ) | ||||||||||||||||
| Provision for income taxes |
(2,431 | ) | (3,038 | ) | (3,446 | ) | (4,016 | ) | (12,931 | ) | (3,486 | ) | (4,714 | ) | (8,200 | ) | ||||||||||||||||
| NET INCOME |
$ | 5,164 | $ | 6,458 | $ | 7,323 | $ | 10,383 | $ | 29,328 | $ | 7,407 | $ | 10,018 | $ | 17,425 | ||||||||||||||||
| INCOME EXCLUDING SPECIAL CHARGES [NET INCOME LESS SPECIAL CHARGES, NET OF TAX] |
$ | 5,164 | $ | 6,458 | $ | 7,649 | $ | 10,527 | $ | 29,799 | $ | 7,877 | $ | 10,436 | $ | 18,313 | ||||||||||||||||
| LESS: Special charges, net of tax |
— | — | (326 | ) | (144 | ) | (471 | ) | (470 | ) | (418 | ) | (888 | ) | ||||||||||||||||||
| NET INCOME |
$ | 5,164 | $ | 6,458 | $ | 7,323 | $ | 10,383 | $ | 29,328 | $ | 7,407 | $ | 10,018 | $ | 17,425 | ||||||||||||||||
| Weighted average common shares outstanding (diluted) |
16,197 | 16,332 | 16,368 | 16,438 | 16,291 | 16,533 | 16,679 | 16,582 | ||||||||||||||||||||||||
| EARNINGS PER SHARE EXCLUDING SPECIAL CHARGES |
$ | 0.32 | $ | 0.40 | $ | 0.47 | $ | 0.64 | $ | 1.83 | $ | 0.48 | $ | 0.63 | $ | 1.10 | ||||||||||||||||