(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices and Zip Code) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
(d) | Exhibits. |
Exhibit No. | Description |
Press Release issued on November 6, 2019, updated to reflect final financial results for the third quarter ended September 29, 2019 | |
Third Quarter 2019 Investor Review Presentation, presented on November 6, 2019, updated to reflect final financial results for the third quarter ended September 29, 2019 | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
CIRCOR INTERNATIONAL, INC. | |
November 14, 2019 | /s/ Chadi Chahine |
Chadi Chahine | |
Senior Vice President and Chief Financial Officer |
• | Results from continuing operations excluding divestitures |
◦ | Revenue of $237 million |
◦ | GAAP Loss per Share of ($1.39) |
◦ | Adjusted Earnings per Share of $0.63 |
◦ | GAAP operating margin of (3.8)% |
◦ | Adjusted Operating Margin of 10.9% (excluding divestitures) |
• | Results including Distributed Valves (consistent with guidance) |
◦ | Revenue of $251 million |
◦ | Adjusted Earnings per Share of $0.48 |
• | 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 |
1. | 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. |
2. | Adjusted Consolidated and Segment Results for Q3 2019 exclude a loss from discontinued operations of $84.7 million and non-cash acquisition-related intangible amortization, special and restructuring charges totaling $34.7 million ($40.2 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) $11.4 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. |
3. | 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. |
• | 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 on January 1, 2018 and excluding the impact of changes in foreign currency exchange rates. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 29, 2019 | September 30, 2018 | September 29, 2019 | September 30, 2018 | ||||||||||||
Net revenues | $ | 237,052 | $ | 247,209 | $ | 721,675 | $ | 746,754 | |||||||
Cost of revenues | 162,578 | 167,132 | 490,870 | 511,563 | |||||||||||
Gross profit | 74,474 | 80,077 | 230,805 | 235,191 | |||||||||||
Selling, general and administrative expenses | 60,039 | 68,544 | 190,227 | 211,909 | |||||||||||
Special and restructuring charges, net | 23,519 | 2,988 | 19,893 | 11,924 | |||||||||||
Operating (loss), income | (9,084 | ) | 8,545 | 20,685 | 11,358 | ||||||||||
Other expense (income): | |||||||||||||||
Interest expense, net | 11,804 | 14,137 | 37,846 | 39,711 | |||||||||||
Other income, net | (759 | ) | (1,580 | ) | (2,755 | ) | (7,079 | ) | |||||||
Total other expense, net | 11,045 | 12,557 | 35,091 | 32,632 | |||||||||||
Loss from continuing operations before income taxes | (20,129 | ) | (4,012 | ) | (14,406 | ) | (21,274 | ) | |||||||
Provision for (benefit from) income taxes | 7,520 | (45 | ) | 13,513 | (4,434 | ) | |||||||||
Loss from continuing operations, net of tax | (27,649 | ) | (3,967 | ) | (27,919 | ) | (16,840 | ) | |||||||
Loss from discontinued operations, net of tax | (84,688 | ) | (2,874 | ) | (107,572 | ) | (1,540 | ) | |||||||
Net loss | $ | (112,337 | ) | $ | (6,841 | ) | $ | (135,491 | ) | $ | (18,380 | ) | |||
Basic loss per common share: | |||||||||||||||
Basic from continuing operations | $ | (1.39 | ) | $ | (0.20 | ) | $ | (1.40 | ) | $ | (0.85 | ) | |||
Basic from discontinued operations | $ | (4.25 | ) | $ | (0.14 | ) | $ | (5.41 | ) | $ | (0.08 | ) | |||
Net loss | $ | (5.64 | ) | $ | (0.34 | ) | $ | (6.81 | ) | $ | (0.93 | ) | |||
Diluted loss per common share: | |||||||||||||||
Diluted from continuing operations | $ | (1.39 | ) | $ | (0.20 | ) | $ | (1.40 | ) | $ | (0.85 | ) | |||
Diluted from discontinued operations | $ | (4.25 | ) | $ | (0.14 | ) | $ | (5.41 | ) | $ | (0.08 | ) | |||
Net loss | $ | (5.64 | ) | $ | (0.34 | ) | $ | (6.81 | ) | $ | (0.93 | ) | |||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 19,916 | 19,843 | 19,898 | 19,829 | |||||||||||
Diluted | 19,916 | 19,843 | 19,898 | 19,829 |
Nine Months Ended | |||||||
OPERATING ACTIVITIES | September 29, 2019 | September 30, 2018 | |||||
Net loss | $ | (135,491 | ) | $ | (18,380 | ) | |
Loss from discontinued operations, net of income taxes | (107,572 | ) | (1,540 | ) | |||
Loss from continuing operations | (27,919 | ) | (16,840 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation | 16,618 | 20,096 | |||||
Amortization | 36,023 | 36,805 | |||||
Provision for bad debt expense | (469 | ) | 932 | ||||
Loss on write down of inventory | 301 | 2,556 | |||||
Amortization of inventory fair value step-up | — | 6,600 | |||||
Compensation expense for share-based plans | 4,200 | 4,146 | |||||
Amortization of debt issuance costs | 3,669 | 2,852 | |||||
Loss on sale or write-down of property, plant and equipment | 2,889 | 1,366 | |||||
Loss on sale of businesses | 2,707 | — | |||||
Changes in operating assets and liabilities, net of effects of acquisition and disposition: | |||||||
Trade accounts receivable | 17,413 | 5,520 | |||||
Inventories | (11,724 | ) | (2,903 | ) | |||
Prepaid expenses and other assets | (20,546 | ) | (20,526 | ) | |||
Accounts payable, accrued expenses and other liabilities | (6,488 | ) | (10,380 | ) | |||
Net cash provided by continuing operating activities | 16,674 | 30,224 | |||||
Net cash used in discontinued operating activities | (17,585 | ) | (6,761 | ) | |||
Net cash (used in) provided by operating activities | (911 | ) | 23,463 | ||||
INVESTING ACTIVITIES | |||||||
Additions to property, plant and equipment | (9,519 | ) | (14,902 | ) | |||
Proceeds from the sale of property, plant and equipment | 99 | 137 | |||||
Proceeds from the sale of business | 163,056 | — | |||||
Business acquisition, working capital consideration adjustment | — | 6,300 | |||||
Net cash provided by (used in) continuing investing activities | 153,636 | (8,465 | ) | ||||
Net cash provided by (used in) discontinued investing activities | (2,435 | ) | (2,058 | ) | |||
Net cash provided by (used in) investing activities | 151,201 | (10,523 | ) | ||||
FINANCING ACTIVITIES | |||||||
Proceeds from long-term debt | 231,950 | 199,600 | |||||
Payments of long-term debt | (379,897 | ) | (186,874 | ) | |||
Proceeds from the exercise of stock options | 106 | 690 | |||||
Return of cash to Fluid Handling Seller | — | (61,201 | ) | ||||
Net cash used in continuing financing activities | (147,841 | ) | (47,785 | ) | |||
Net cash used in discontinued financing activities | — | — | |||||
Net cash used in financing activities | (147,841 | ) | (47,785 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,753 | ) | (5,154 | ) | |||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 696 | (39,999 | ) | ||||
Cash, cash equivalents, and restricted cash at beginning of period | 69,525 | 112,293 | |||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ | 70,221 | $ | 72,294 |
September 29, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 69,225 | $ | 68,517 | |||
Trade accounts receivable, less allowance for doubtful accounts of $4,342 and $5,884 at September 29, 2019 and December 31, 2018, respectively | 141,117 | 167,181 | |||||
Inventories | 151,744 | 143,682 | |||||
Prepaid expenses and other current assets | 89,854 | 71,428 | |||||
Assets held for sale | 29,935 | 197,238 | |||||
Total Current Assets | 481,875 | 648,046 | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | 177,936 | 189,672 | |||||
OTHER ASSETS: | |||||||
Goodwill | 360,304 | 450,605 | |||||
Intangibles, net | 392,515 | 440,281 | |||||
Deferred income taxes | 24,449 | 19,906 | |||||
Assets held for sale | — | 30,374 | |||||
Other assets | 31,052 | 12,728 | |||||
TOTAL ASSETS | $ | 1,468,131 | $ | 1,791,612 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 90,293 | $ | 94,715 | |||
Accrued expenses and other current liabilities | 110,682 | 92,496 | |||||
Accrued compensation and benefits | 25,564 | 30,703 | |||||
Current portion of long-term debt | — | 7,850 | |||||
Liabilities held for sale | 17,674 | 58,298 | |||||
Total Current Liabilities | 244,213 | 284,062 | |||||
LONG-TERM DEBT | 640,884 | 778,187 | |||||
DEFERRED INCOME TAXES | 26,809 | 33,607 | |||||
PENSION LIABILITY, NET | 144,809 | 150,623 | |||||
LIABILITIES HELD FOR SALE | — | 861 | |||||
OTHER NON-CURRENT LIABILITIES | 36,028 | 15,279 | |||||
COMMITMENTS AND CONTINGENCIES (NOTE 12) | |||||||
SHAREHOLDERS’ EQUITY: | |||||||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding | — | ||||||
Common stock, $0.01 par value; 29,000,000 shares authorized; 19,906,263 and 19,845,205 shares issued and outstanding at September 29, 2019 and December 31, 2018, respectively | 212 | 212 | |||||
Additional paid-in capital | 445,305 | 440,890 | |||||
Retained earnings | 97,728 | 232,102 | |||||
Common treasury stock, at cost (1,372,488 shares at September 29, 2019 and December 31, 2018) | (74,472 | ) | (74,472 | ) | |||
Accumulated other comprehensive loss, net of tax | (93,385 | ) | (69,739 | ) | |||
Total Shareholders’ Equity | 375,388 | 528,993 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,468,131 | $ | 1,791,612 |
CIRCOR INTERNATIONAL, INC. Summary of Orders and Backlog (in millions) UNAUDITED | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 29, 2019 | September 30, 2018 | September 29, 2019 | September 30, 2018 | ||||||||||||
ORDERS (1) | |||||||||||||||
Energy | $ | 53.3 | $ | 87.1 | $ | 145.3 | $ | 239.3 | |||||||
Aerospace & Defense | 64.0 | 81.5 | 245.5 | 200.8 | |||||||||||
Industrial | 105.7 | 114.9 | 350.1 | 388.2 | |||||||||||
Total orders | $ | 223.0 | $ | 283.6 | $ | 740.9 | $ | 828.3 | |||||||
BACKLOG (1) | September 29, 2019 | September 30, 2018 | |||||||||||||
Energy | $59.3 | $121.6 | |||||||||||||
Aerospace & Defense | 206.9 | 150.6 | |||||||||||||
Industrial | 159.1 | 178.0 | |||||||||||||
Total orders | $425.3 | $450.2 | |||||||||||||
Numbers may not add due to rounding. | |||||||||||||||
Note 1: Orders do not include the foreign exchange impact due to the re-measurement of customer backlog amounts denominated in foreign currencies. Orders for the three and nine months ended September 29, 2019 include orders from businesses divested prior to September 29, 2019 of $4.8 million and $19.0 million, respectively. Orders for the three and nine months ended September 30, 2018 include orders from businesses divested of $26.2 million and $81.0 million, respectively. Divested businesses are Reliability Services (Energy), Spence / Nicholson (Industrial) and Delden (Industrial). | |||||||||||||||
Note 2: Backlog include unshipped customer orders for which revenue has not been recognized. Backlog at Q3 2018 includes $21.6 million and $15.0 million for Energy and Industrial related to divested businesses. A&D Q3 2018 backlog has been adjusted to conform to current period reporting methodology. |
CIRCOR INTERNATIONAL, INC. Segment Information (in thousands, except percentages) UNAUDITED | ||||||||||||||||||
2018 | 2019 | |||||||||||||||||
As Reported | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL | |||||||||
ORDERS (1) | ||||||||||||||||||
Energy | $85,336 | $66,825 | $87,146 | $72,319 | $311,626 | $48,088 | $43,982 | $53,276 | $145,346 | |||||||||
Aerospace & Defense | 59,793 | 59,441 | 81,533 | 76,702 | 277,469 | 88,107 | 93,405 | 63,968 | 245,480 | |||||||||
Industrial | 136,607 | 136,746 | 114,876 | 121,886 | 510,115 | 123,746 | 120,660 | 105,710 | 350,116 | |||||||||
Total orders | $281,735 | $263,012 | $283,555 | $270,907 | $1,099,210 | $259,941 | $258,047 | $222,954 | $740,941 | |||||||||
NET REVENUES | ||||||||||||||||||
Energy | $64,278 | $71,094 | $70,718 | $82,786 | $288,877 | $66,877 | $61,752 | $55,835 | $184,464 | |||||||||
Aerospace & Defense | 58,477 | 57,500 | 57,757 | 63,283 | 237,017 | 61,240 | 64,694 | 67,621 | 193,555 | |||||||||
Industrial | 117,132 | 131,064 | 118,734 | 120,646 | 487,575 | 110,738 | 119,322 | 113,596 | 343,656 | |||||||||
Total | $239,888 | $259,658 | $247,209 | $266,715 | $1,013,470 | $238,855 | $245,768 | $237,052 | $721,675 | |||||||||
Segment Operating Income | ||||||||||||||||||
Energy | $5,627 | $10,691 | $9,726 | $12,735 | $38,779 | $9,978 | $8,343 | $5,286 | $23,607 | |||||||||
Aerospace & Defense | 8,931 | 6,992 | 8,709 | 11,415 | 36,047 | 9,374 | 10,443 | 13,564 | 33,382 | |||||||||
Industrial | 12,946 | 15,037 | 14,609 | 14,748 | 57,340 | 10,787 | 16,138 | 13,953 | 40,878 | |||||||||
Corporate Expenses | (7,800) | (6,450) | (8,034) | (8,004) | (30,289) | (6,705) | (6,336) | (7,209) | (20,250) | |||||||||
Total | $19,704 | $26,269 | $25,010 | $30,894 | $101,877 | $23,433 | $28,589 | $25,594 | $77,617 | |||||||||
Segment Operating Margin % | ||||||||||||||||||
Energy | 8.8 | % | 15.0 | % | 13.8 | % | 15.4 | % | 13.4 | % | 14.9 | % | 13.5 | % | 9.5 | % | 12.8 | % |
Aerospace & Defense | 15.3 | % | 12.2 | % | 15.1 | % | 18.0 | % | 15.2 | % | 15.3 | % | 16.1 | % | 20.1 | % | 17.2 | % |
Industrial | 11.1 | % | 11.5 | % | 12.3 | % | 12.2 | % | 11.8 | % | 9.7 | % | 13.5 | % | 12.3 | % | 11.9 | % |
Total | 8.2 | % | 10.1 | % | 10.1 | % | 11.6 | % | 10.1 | % | 9.8 | % | 11.6 | % | 10.8 | % | 10.8 | % |
Segment Operating Margin % Excluding Divestitures (1) | ||||||||||||||||||
Energy | 11.3 | % | 16.0 | % | 12.6 | % | 16.9 | % | 14.4 | % | 15.6 | % | 13.5 | % | 9.5 | % | 13.0 | % |
Aerospace & Defense | 15.3 | % | 12.2 | % | 15.1 | % | 18.0 | % | 15.2 | % | 15.3 | % | 16.1 | % | 20.1 | % | 17.2 | % |
Industrial | 10.5 | % | 11.3 | % | 12.0 | % | 11.5 | % | 11.4 | % | 8.7 | % | 12.7 | % | 12.6 | % | 11.4 | % |
Total | 8.4 | % | 9.9 | % | 9.4 | % | 11.4 | % | 9.8 | % | 9.5 | % | 11.2 | % | 10.9 | % | 10.5 | % |
Numbers may not add due to rounding. | ||||||||||||||||||
(1) 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. Supplemental Information Regarding Divested Businesses (in thousands) UNAUDITED | |||||||||
2018 | 2019 | ||||||||
Divested Businesses (1) | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
ORDERS | |||||||||
Energy | $16,891 | $18,389 | $19,145 | $15,451 | $69,875 | $4,104 | $— | $— | $4,104 |
Industrial | 9,708 | 9,836 | 7,078 | 11,351 | 37,973 | 4,778 | 5,275 | 4,798 | 14,851 |
Total | $26,599 | $28,225 | $26,223 | $26,802 | $107,849 | $8,882 | $5,275 | $4,798 | $18,955 |
NET REVENUES | |||||||||
Energy | $14,731 | $17,419 | $16,579 | $16,885 | $65,613 | $3,106 | $— | $— | $3,106 |
Industrial | 8,816 | 6,317 | 7,123 | 9,762 | 32,017 | 5,366 | 5,198 | 2,891 | 13,456 |
Total | $23,547 | $23,735 | $23,702 | $26,647 | $97,630 | $8,473 | $5,198 | $2,891 | 16,562 |
SEGMENT OPERATING INCOME | |||||||||
Energy | $8 | $2,085 | $2,905 | $1,597 | $6,596 | $— | $— | $— | $— |
Industrial | 1,573 | 897 | 1,174 | 1,983 | 5,627 | 1,630 | 1,642 | 0 | 3,272 |
Total | $1,582 | $2,982 | $4,079 | $3,580 | $12,223 | $1,630 | $1,642 | $— | $3,272 |
Numbers may not add due to rounding. | |||||||||
(1) 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. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except per share data) UNAUDITED | |||||||||
2018 | 2019 | ||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL | |
Net Cash (Used In) Provided by Operating Activities | $(145) | $(465) | $24,073 | $30,531 | $53,994 | $(22,378) | $12,339 | $9,128 | $(911) |
LESS: | |||||||||
Capital expenditures, net of sale proceeds | 8,141 | 3,563 | 5,119 | 6,534 | 23,357 | 3,689 | 2,995 | (963) | 5,721 |
FREE CASH FLOW | $(8,286) | $(4,028) | $18,954 | $23,997 | $30,637 | $(26,067) | $9,344 | $10,091 | $(6,632) |
Gross Debt | |||||||||
Less: Cash & Cash Equivalents | $823,665 | $827,629 | $831,613 | $807,050 | $807,050 | $753,950 | $748,250 | $659,100 | $659,100 |
GROSS DEBT, NET OF CASH | 123,305 | 69,030 | 71,334 | 68,517 | 68,517 | 73,619 | 76,082 | 69,225 | 69,225 |
$700,360 | $758,599 | $760,279 | $738,533 | $738,533 | $680,331 | $672,168 | $589,875 | $589,875 | |
TOTAL SHAREHOLDER'S EQUITY | $592,096 | $573,992 | $574,171 | $528,993 | $528,993 | $516,177 | $494,899 | $375,388 | $375,388 |
GROSS DEBT AS % OF EQUITY | 139% | 144% | 145% | 153% | 153% | 146% | 151% | 176% | 176% |
GROSS DEBT, NET OF CASH AS % OF EQUITY | 118% | 132% | 132% | 140% | 140% | 132% | 136% | 157% | 157% |
Numbers may not add due to rounding. |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except per share data) UNAUDITED | |||||||||
2018 | 2019 | ||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL | |
NET (LOSS) INCOME | $(17,441) | $5,902 | $(6,841) | $(21,005) | $(39,384) | $(4,633) | $(18,520) | $(112,337) | $(135,491) |
LESS: | |||||||||
Restructuring related inventory charges | 473 | 16 | — | (137) | 352 | 325 | — | (1,145) | (820) |
Amortization of inventory step-up | 6,600 | — | — | — | 6,600 | — | — | — | — |
Restructuring charges, net | 3,424 | 524 | 1,075 | 825 | 5,848 | 358 | 299 | 5,038 | 5,695 |
Acquisition amortization | 11,797 | 11,767 | 11,735 | 12,012 | 47,311 | 12,078 | 11,247 | 11,202 | 34,527 |
Acquisition depreciation | 1,837 | 1,735 | 1,742 | 1,735 | 7,049 | 1,123 | 1,106 | 1,101 | 3,331 |
Special charges, net | 3,360 | 1,629 | 1,913 | 6,160 | 13,061 | (8,200) | 3,916 | 18,481 | 14,196 |
Income tax impact | (5,798) | (4,213) | (1,857) | 10,998 | (870) | 3,625 | (2,266) | 5,533 | 6,892 |
Net income (loss) from discontinued operations | 3,468 | (4,802) | 2,874 | 4,498 | 6,038 | 5,728 | 17,156 | 84,719 | 107,603 |
ADJUSTED NET INCOME | $7,719 | $12,556 | $10,642 | $15,086 | $46,004 | $10,404 | $12,938 | $12,592 | $35,935 |
(LOSS) EARNINGS PER COMMON SHARE (Diluted) | $(0.88) | $0.30 | $(0.34) | $(1.06) | $(1.99) | $(0.23) | $(0.93) | $(5.64) | $(6.81) |
LESS: | |||||||||
Restructuring related inventory charges | 0.02 | — | — | (0.01) | 0.02 | 0.02 | — | (0.06) | (0.04) |
Amortization of inventory step-up | 0.33 | — | — | — | 0.33 | — | — | — | — |
Restructuring charges, net | 0.17 | 0.03 | 0.05 | 0.04 | 0.29 | 0.02 | 0.02 | 0.25 | 0.29 |
Acquisition amortization | 0.60 | 0.59 | 0.59 | 0.61 | 2.39 | 0.61 | 0.57 | 0.56 | 1.74 |
Acquisition depreciation | 0.09 | 0.09 | 0.09 | 0.09 | 0.36 | 0.06 | 0.06 | 0.06 | 0.17 |
Special charges (recoveries), net | 0.17 | 0.08 | 0.10 | 0.31 | 0.66 | (0.41) | 0.20 | 0.93 | 0.71 |
Income tax impact | (0.29) | (0.21) | (0.10) | 0.55 | (0.06) | 0.18 | (0.12) | 0.28 | 0.33 |
Earnings (Loss) Per Share from discontinued operations | 0.18 | (0.24) | 0.14 | 0.23 | 0.30 | 0.29 | 0.86 | 4.25 | 5.41 |
ADJUSTED EARNINGS PER SHARE (Diluted) | $0.39 | $0.63 | $0.53 | $0.76 | $2.30 | $0.52 | $0.64 | $0.63 | $1.79 |
Numbers may not add due to rounding. |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands) UNAUDITED | |||||||||
2018 | 2019 | ||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL | |
NET (LOSS) INCOME | $(17,441) | $5,902 | $(6,841) | $(21,005) | $(39,384) | $(4,633) | $(18,520) | $(112,338) | $(135,491) |
LESS: | |||||||||
Interest expense, net | 11,810 | 13,764 | 14,137 | 13,264 | 52,975 | 13,094 | 12,947 | 11,804 | 37,846 |
Depreciation | 4,834 | 4,791 | 9,983 | 6,576 | 26,183 | 5,499 | 5,568 | 5,551 | 16,618 |
Amortization | 14,134 | 13,985 | 8,632 | 12,477 | 49,228 | 12,536 | 11,685 | 11,629 | 35,851 |
Benefit from (provision for) income taxes | (3,782) | (608) | (45) | 13,885 | 9,451 | 5,709 | 284 | 7,490 | 13,483 |
Loss from discontinued operations | 3,468 | (4,802) | 2,874 | 4,498 | 6,038 | 5,728 | 17,156 | 84,719 | 107,603 |
EBITDA | $13,023 | $33,032 | $28,740 | $29,695 | $104,490 | $37,933 | $29,120 | $8,857 | $75,910 |
LESS: | |||||||||
Restructuring related inventory charges | 473 | 16 | — | (137) | 352 | 325 | — | (1,145) | (820) |
Amortization of inventory step-up | 6,600 | — | — | — | 6,600 | — | — | — | — |
Restructuring charges, net | 3,424 | 524 | 1,075 | 825 | 5,848 | 358 | 299 | 5,038 | 5,695 |
Special recoveries (charges), net | 3,360 | 1,629 | 1,913 | 6,160 | 13,061 | (8,200) | 3,916 | 18,481 | 14,196 |
ADJUSTED EBITDA | $26,880 | $35,200 | $31,728 | $36,544 | $130,351 | $30,416 | $33,335 | $31,230 | $94,982 |
Numbers may not add due to rounding. |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except per share data) UNAUDITED | |||||||||||||||||||||||||||
2018 | 2019 | ||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL | |||||||||||||||||||
GAAP OPERATING (LOSS) INCOME | $ | (7,787 | ) | $ | 10,599 | $ | 8,545 | $ | 10,295 | $ | 21,653 | $ | 17,750 | $ | 12,020 | $ | (9,083 | ) | $ | 20,687 | |||||||
LESS: | |||||||||||||||||||||||||||
Restructuring related inventory charges | 473 | 16 | — | (137 | ) | 352 | 325 | — | (1,145 | ) | (820 | ) | |||||||||||||||
Amortization of inventory step-up | 6,600 | — | — | — | 6,600 | — | — | — | — | ||||||||||||||||||
Restructuring charges, net | 3,424 | 524 | 1,075 | 825 | 5,848 | 358 | 299 | 5,038 | 5,695 | ||||||||||||||||||
Acquisition amortization | 11,797 | 11,767 | 11,735 | 12,012 | 47,311 | 12,078 | 11,247 | 11,202 | 34,527 | ||||||||||||||||||
Acquisition depreciation | 1,837 | 1,735 | 1,742 | 1,735 | 7,049 | 1,123 | 1,106 | 1,101 | 3,331 | ||||||||||||||||||
Special charges (recoveries), net | 3,360 | 1,629 | 1,913 | 6,160 | 13,061 | (8,200 | ) | 3,916 | 18,481 | 14,196 | |||||||||||||||||
ADJUSTED OPERATING INCOME | $19,704 | $26,269 | $25,010 | $30,890 | $101,873 | $23,433 | $28,589 | $25,594 | $77,617 | ||||||||||||||||||
GAAP OPERATING MARGIN | (3.2 | )% | 4.1 | % | 3.5 | % | 3.9 | % | 2.1 | % | 7.4 | % | 4.9 | % | (3.8 | )% | 2.9 | % | |||||||||
LESS: | — | % | — | % | — | % | — | % | — | % | |||||||||||||||||
Restructuring related inventory charges | 0.2 | % | — | % | — | % | (0.1 | )% | — | % | 0.1 | % | — | % | (0.5 | )% | (0.1 | )% | |||||||||
Amortization of inventory step-up | 2.8 | % | — | % | — | % | — | % | 0.7 | % | — | % | — | % | — | % | — | % | |||||||||
Restructuring charges, net | 1.4 | % | 0.2 | % | 0.4 | % | 0.3 | % | 0.6 | % | 0.2 | % | 0.1 | % | 2.1 | % | 0.8 | % | |||||||||
Acquisition amortization | 4.9 | % | 4.5 | % | 4.7 | % | 4.5 | % | 4.7 | % | 5.1 | % | 4.6 | % | 4.7 | % | 4.8 | % | |||||||||
Acquisition depreciation | 0.8 | % | 0.7 | % | 0.7 | % | 0.7 | % | 0.7 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | |||||||||
Special charges (recoveries), net | 1.4 | % | 0.6 | % | 0.8 | % | 2.3 | % | 1.3 | % | (3.4 | )% | 1.6 | % | 7.8 | % | 2.0 | % | |||||||||
Income tax impact | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | |||||||||
Net income loss from discontinued operations | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | |||||||||
ADJUSTED OPERATING MARGIN | 8.2 | % | 10.1 | % | 10.1 | % | 11.6 | % | 10.1 | % | 9.8 | % | 11.6 | % | 10.8 | % | 10.8 | % | |||||||||
Impact of Divestitures (1) | — | % | — | % | (1 | )% | (0.2 | )% | (0.3 | )% | (0.3 | )% | (0.4 | )% | 0.1 | % | (0.2 | )% | |||||||||
ADJUSTED OPERATING MARGIN EXCLUDING DIVESTITURES (1) | 8.4 | % | 9.9 | % | 9.4 | % | 11.4 | % | 9.8 | % | 9.5 | % | 11.2 | % | 10.9 | % | 10.5 | % | |||||||||
Numbers may not add due to rounding. |