EXHIBIT 99.1
CIRCOR Reports Third-Quarter 2015 Financial Results
Burlington, MA - November 9, 2015 - CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for markets including oil & gas, power generation and aerospace & defense, today announced financial results for the third quarter ended October 4, 2015.
Third-Quarter 2015 Highlights
| |
| • | Revenues of approx. $160 million consistent with expectations |
| |
| • | Cost control and restructuring actions continue to drive bottom-line performance |
| |
| • | Closing Brazil manufacturing facility in line with margin improvement strategy |
| |
| • | Energy adjusted operating margin at 15.4% |
| |
| • | Aerospace & Defense adjusted operating margin at 9.1% |
“CIRCOR delivered solid results for the third-quarter of 2015 as we demonstrated good progress on our margin expansion and simplification strategy,” said Scott Buckhout, President and Chief Executive Officer. “We delivered strong year-over-year sales growth in our long-cycle, large projects and control valve businesses. As expected, we continue to see significant weakness in our North American, short-cycle distributed valves business. On the Aerospace side, strength in our commercial fluid controls business was offset by lower sales of defense-related programs.”
“Today we are announcing the decision to close our manufacturing facility in Brazil as a result of the difficult economic conditions there and the ongoing challenges of Petrobras, our largest customer,” said Buckhout. “CIRCOR Brazil has reported substantial operating losses every year since it was acquired in 2011, while the underlying market conditions and outlook have continued to deteriorate.”
As a result of the closure of the Brazil manufacturing operation, the Company recorded a total of approximately $16.9 million of special charges, including $6.4 million of restructuring-related inventory charges, in the third quarter.
“Our top priority remains laying the foundation for long-term, above-market growth. We are improving delivery and quality while investing in sales, new product development and engineering. Going forward, we continue to focus on creating long-term value for shareholders by driving growth, expanding margins, generating strong free cash flow, and effectively deploying capital,” concluded Buckhout.
Fourth-Quarter 2015 Guidance
For the fourth quarter of 2015, the Company will provide its guidance during the conference call later today.
Conference Call Information
CIRCOR International will hold a conference call to review its financial results today, November 9, 2015, at 9:00 a.m. ET. To listen to the conference call and view the accompanying presentation slides, visit “Webcasts & Presentations” in the “Investors” portion of the CIRCOR website. The call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. The webcast will be archived for one year on the Company’s website.
Use of Non-GAAP Financial Measures
Adjusted net income, adjusted earnings per share (diluted), adjusted operating margin, and free cash flow are non-GAAP financial measures and are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States. CIRCOR believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which are, in some cases, beyond the control of CIRCOR. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, those relating to CIRCOR’s future performance, including the realization of cost reductions from restructuring activities. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND SUBSEQUENT REPORTS ON FORMS 10-Q AND 10-Q/A, WHICH CAN BE ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
About CIRCOR International, Inc.
CIRCOR International, Inc. designs, manufactures and markets highly engineered products and sub-systems for markets including oil & gas, power generation and aerospace & defense. CIRCOR has a diversified product portfolio with recognized, market-leading brands that fulfill its customers’ unique application needs. The Company’s strategy is to grow organically and through complementary acquisitions; simplify CIRCOR’s operations; achieve world class operational excellence; and attract and retain top industry talent. For more information, visit the Company’s investor relations website at http://investors.circor.com.
Contact:
Rajeev Bhalla
Executive Vice President & Chief Financial Officer
CIRCOR International
(781) 270-1200
CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF (LOSS) INCOME (in thousands, except per share data) UNAUDITED |
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | October 4, 2015 | | September 28, 2014 | | October 4, 2015 | | September 28, 2014 |
| Net revenues | $ | 159,258 |
| | $ | 203,818 |
| | $ | 492,023 |
| | $ | 622,888 |
|
| Cost of revenues | 113,865 |
| | 141,601 |
| | 343,187 |
| | 436,333 |
|
| GROSS PROFIT | 45,393 |
| | 62,217 |
| | 148,836 |
| | 186,555 |
|
| Selling, general and administrative expenses | 38,143 |
| | 41,873 |
| | 119,344 |
| | 129,370 |
|
| Impairment charges | 2,502 |
| | — |
| | 2,502 |
| | — |
|
| Special charges, net | 8,277 |
| | 478 |
| | 13,098 |
| | 578 |
|
| OPERATING (LOSS) INCOME | (3,529 | ) | | 19,866 |
| | 13,892 |
| | 56,607 |
|
| Other expense (income): | | | | | | | |
| Interest expense, net | 828 |
| | 436 |
| | 2,274 |
| | 2,245 |
|
| Other (income) expense, net | (587 | ) | | 419 |
| | (1,197 | ) | | (434 | ) |
| TOTAL OTHER EXPENSE, NET | 241 |
| | 855 |
| | 1,077 |
| | 1,811 |
|
| (LOSS) INCOME BEFORE INCOME TAXES | (3,770 | ) | | 19,012 |
| | 12,816 |
| | 54,796 |
|
| Provision for income taxes | 4,308 |
| | 4,337 |
| | 10,109 |
| | 13,565 |
|
| NET (LOSS) INCOME | $ | (8,078 | ) | | $ | 14,675 |
| | $ | 2,707 |
| | $ | 41,231 |
|
| (Loss) Earnings per common share: | | | | | | | |
| Basic | $ | (0.49 | ) | | $ | 0.83 |
| | $ | 0.16 |
| | $ | 2.34 |
|
| Diluted | $ | (0.49 | ) | | $ | 0.83 |
| | $ | 0.16 |
| | $ | 2.32 |
|
| Weighted average number of common shares outstanding: | | | | | | | |
| Basic | 16,485 |
| | 17,675 |
| | 16,989 |
| | 17,654 |
|
| Diluted | 16,485 |
| | 17,779 |
| | 17,029 |
| | 17,763 |
|
| Dividends paid per common share | $ | 0.0375 |
| | $ | 0.0375 |
| | $ | 0.1125 |
| | $ | 0.1125 |
|
CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (UNAUDITED) |
| | | | | | | |
| | Nine Months Ended |
| | October 4, 2015 | | September 28, 2014 |
| OPERATING ACTIVITIES | | | |
| Net income | $ | 2,707 |
|
| $ | 41,231 |
|
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | | | |
| Depreciation | 10,676 |
| | 12,163 |
|
| Amortization | 6,742 |
| | 2,367 |
|
| Bad debt | 2,832 |
| | 948 |
|
| Compensation expense of share-based plans | 5,811 |
| | 5,956 |
|
| Tax effect of share-based plan compensation | (259 | ) | | (744 | ) |
| Loss (gain) on sale of property, plant and equipment | 478 |
| | (133 | ) |
| Impairment charge | 2,502 |
| | — |
|
| Gain on sale of business | (1,044 | ) | | — |
|
| Changes in operating assets and liabilities, net of effects of acquisition and disposition | | | |
| Trade accounts receivable | 8,118 |
| | (31,890 | ) |
| Inventories | (17,452 | ) | | (159 | ) |
| Prepaid expenses and other assets | (2,801 | ) | | (121 | ) |
| Accounts payable, accrued expenses and other liabilities | (21,669 | ) | | 14,953 |
|
| Net cash (used in) provided by operating activities | (3,359 | ) | | 44,571 |
|
| INVESTING ACTIVITIES | | | |
| Purchases of property, plant and equipment | (9,604 | ) | | (8,900 | ) |
| Proceeds from the sale of property, plant and equipment | 1,200 |
| | 761 |
|
| Proceeds from the sale of affiliate | 2,759 |
| | 177 |
|
| Business acquisition, net of cash acquired | (79,983 | ) | | — |
|
| Net cash used in investing activities | (85,628 | ) | | (7,962 | ) |
| FINANCING ACTIVITIES | | | |
| Proceeds from long-term debt | 241,619 |
| | 109,104 |
|
| Payments of long-term debt | (141,830 | ) | | (125,140 | ) |
| Debt issuance costs | — |
| | (920 | ) |
| Dividends paid | (1,937 | ) | | (2,011 | ) |
| Proceeds from the exercise of stock options | 259 |
| | 420 |
|
| Tax effect of share-based plan compensation | 259 |
| | 744 |
|
| Purchases of common stock | (69,517 | ) | | — |
|
| Net cash provided by (used in) financing activities | 28,853 |
| | (17,803 | ) |
| Effect of exchange rate changes on cash and cash equivalents | (7,416 | ) | | (6,406 | ) |
| (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (67,550 | ) | | 12,400 |
|
| Cash and cash equivalents at beginning of year | 121,372 |
| | 102,180 |
|
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 53,822 |
| | $ | 114,580 |
|
CIRCOR INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands)
|
| | | | | | | |
| | October 4, 2015 | | December 31, 2014 |
| ASSETS | | | |
| CURRENT ASSETS: | | | |
| Cash and cash equivalents | $ | 53,822 |
| | $ | 121,372 |
|
| Trade accounts receivable, less allowance for doubtful accounts of $9,342 and $9,536, respectively | 143,601 |
| | 156,738 |
|
| Inventories | 198,560 |
| | 183,434 |
|
| Prepaid expenses and other current assets | 15,984 |
| | 21,626 |
|
| Deferred income taxes | 22,114 |
| | 22,861 |
|
| Total Current Assets | 434,081 |
| | 506,031 |
|
| PROPERTY, PLANT AND EQUIPMENT, NET | 88,242 |
| | 96,212 |
|
| OTHER ASSETS: | | | |
| Goodwill | 121,357 |
| | 72,430 |
|
| Intangibles, net | 53,248 |
| | 26,887 |
|
| Deferred income taxes | 14,585 |
| | 19,048 |
|
| Other assets | 2,848 |
| | 4,114 |
|
| TOTAL ASSETS | $ | 714,361 |
| | $ | 724,722 |
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
| CURRENT LIABILITIES: | | | |
| Accounts payable | $ | 66,764 |
| | $ | 87,112 |
|
| Accrued expenses and other current liabilities | 65,097 |
| | 65,223 |
|
| Accrued compensation and benefits | 18,586 |
| | 24,728 |
|
| Notes payable and current portion of long-term debt | 5,668 |
| | 8,423 |
|
| Total Current Liabilities | 156,115 |
| | 185,486 |
|
| LONG-TERM DEBT, NET OF CURRENT PORTION | 105,431 |
| | 5,261 |
|
| DEFERRED INCOME TAXES | 16,490 |
| | 7,771 |
|
| OTHER NON-CURRENT LIABILITIES | 28,346 |
| | 32,111 |
|
| SHAREHOLDERS’ EQUITY: | | | |
| Common stock | 177 |
| | 177 |
|
| Additional paid-in capital | 283,213 |
| | 277,227 |
|
| Retained earnings | 251,409 |
| | 250,635 |
|
| Common treasury stock | (69,517 | ) | | — |
|
| Accumulated other comprehensive loss, net of taxes | (57,303 | ) | | (33,946 | ) |
| Total Shareholders’ Equity | 407,979 |
| | 494,093 |
|
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 714,361 |
| | $ | 724,721 |
|
CIRCOR INTERNATIONAL, INC. SUMMARY OF ORDERS AND BACKLOG (in millions) UNAUDITED |
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | October 4,
2015 | | September 28,
2014 | | October 4,
2015 | | September 28,
2014 |
ORDERS (1)(3) | | | | | | | |
| Energy | $ | 94.2 |
| | $ | 187.3 |
| | $ | 348.7 |
| | $ | 483.4 |
|
| Aerospace & Defense | 34.3 |
| | 41.5 |
| | 103.9 |
| | 118.9 |
|
| Total orders | $ | 128.5 |
| | $ | 228.8 |
| | $ | 452.6 |
| | $ | 602.3 |
|
| | | | | | | | |
BACKLOG (2)(3) | October 4,
2015 | | September 28,
2014 | | | | |
Energy (4) | $ | 210.5 |
| | $ | 304.5 |
| | | | |
Aerospace & Defense (5) | 94.1 |
| | 125.8 |
| | | | |
| Total backlog | $ | 304.6 |
| | $ | 430.3 |
| | | | |
| | | | | | | | |
| Note 1: Orders do not include the foreign exchange impact due to the re-measurement of customer order backlog amounts denominated in foreign currencies. |
| Note 2: Backlog includes unshipped customer orders. |
| Note 3: Three and nine months ended September 28, 2014 orders and backlog amounts exclude business divestitures in both the Energy and Aerospace & Defense segments. |
| Note 4: Energy backlog was reduced by $10.0 million due to certain customer order cancellations during the fourth quarter of 2014 and third quarter of 2015. These orders were initially recorded in prior years. |
| Note 5: Aerospace & Defense reduced backlog in the fourth quarter of 2014 by $13.5 million associated with a business divestiture and change in policy. |
CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except percentages) UNAUDITED |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | 2014 | 2015 |
| | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
| NET REVENUES | | | | | | | | | |
| Energy | $ | 162,587 |
| $ | 160,580 |
| $ | 157,658 |
| $ | 172,432 |
| $ | 653,257 |
| $ | 127,586 |
| $ | 127,230 |
| $ | 122,905 |
| $ | 377,721 |
|
| Aerospace & Defense | 48,599 |
| 47,304 |
| 46,160 |
| 46,126 |
| 188,189 |
| 38,274 |
| 39,676 |
| 36,353 |
| 114,303 |
|
| Total | $ | 211,186 |
| $ | 207,884 |
| $ | 203,818 |
| $ | 218,558 |
| $ | 841,446 |
| $ | 165,860 |
| $ | 166,906 |
| $ | 159,258 |
| $ | 492,023 |
|
| ADJUSTED OPERATING MARGIN | | | | | | | | | |
| Energy | 13.8 | % | 14.6 | % | 16.9 | % | 14.3 | % | 14.9 | % | 13.2 | % | 11.4 | % | 15.4 | % | 13.3 | % |
| Aerospace & Defense | 9.1 | % | 7.1 | % | 5.0 | % | 5.3 | % | 6.6 | % | 8.0 | % | 8.8 | % | 9.1 | % | 8.6 | % |
| Segment operating margin | 12.7 | % | 12.9 | % | 14.2 | % | 12.4 | % | 13.0 | % | 12.0 | % | 10.8 | % | 14.0 | % | 12.2 | % |
| Corporate expenses | (3.4 | )% | (2.2 | )% | (2.8 | )% | (2.7 | )% | (2.8 | )% | (3.6 | )% | (3.3 | )% | (3.8 | )% | (3.6 | )% |
| Adjusted operating margin | 9.4 | % | 10.7 | % | 11.4 | % | 9.6 | % | 10.2 | % | 8.3 | % | 7.5 | % | 10.1 | % | 8.6 | % |
| Restructuring related inventory charges | — | % | 2.5 | % | 1.4 | % | — | % | 0.9 | % | — | % | 1.2 | % | 4.0 | % | 1.7 | % |
| Impairment charges | — | % | — | % | — | % | 0.3 | % | 0.1 | % | — | % | — | % | 1.6 | % | 0.5 | % |
| Special restructuring charges | 0.4 | % | 0.6 | % | 0.2 | % | 1.2 | % | 0.6 | % | 0.9 | % | 1.9 | % | 0.2 | % | 1.0 | % |
| Special acquisition amortization | — | % | — | % | — | % | — | % | — | % | — | % | 1.3 | % | 1.6 | % | 0.9 | % |
| Special other charges, net of recoveries | (0.9 | )% | — | % | — | % | 4.3 | % | 0.9 | % | — | % | 0.1 | % | 5.0 | % | 1.6 | % |
| Total GAAP operating margin | 9.9 | % | 7.6 | % | 9.7 | % | 3.7 | % | 7.7 | % | 7.4 | % | 3.0 | % | (2.2 | )% | 2.8 | % |
| | | | | | | | | | |
| | | | | | | | | | |
CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except earnings per share and percentages) UNAUDITED |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | 2014 | 2015 |
| | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
| ADJUSTED OPERATING INCOME | | | | | | | | | |
| Energy | $ | 22,462 |
| $ | 23,502 |
| $ | 26,577 |
| $ | 24,575 |
| $ | 97,117 |
| $ | 16,831 |
| $ | 14,499 |
| $ | 18,932 |
| $ | 50,262 |
|
| Aerospace & Defense | 4,426 |
| 3,362 |
| 2,295 |
| 2,425 |
| 12,508 |
| 3,045 |
| 3,494 |
| 3,298 |
| 9,837 |
|
| Segment operating income | 26,888 |
| 26,864 |
| 28,872 |
| 27,000 |
| 109,625 |
| 19,876 |
| 17,993 |
| 22,230 |
| 60,099 |
|
| Corporate expenses | (7,137 | ) | (4,634 | ) | (5,678 | ) | (5,965 | ) | (23,415 | ) | (6,034 | ) | (5,477 | ) | (6,078 | ) | (17,589 | ) |
| Adjusted operating income | 19,750 |
| 22,231 |
| 23,194 |
| 21,035 |
| 86,210 |
| 13,842 |
| 12,516 |
| 16,152 |
| 42,510 |
|
| Restructuring related inventory charges | — |
| 5,139 |
| 2,850 |
| — |
| 7,989 |
| — |
| 2,005 |
| 6,412 |
| 8,417 |
|
| Impairment charges | — |
| — |
| — |
| 726 |
| 726 |
| — |
| — |
| 2,502 |
| 2,502 |
|
| Special restructuring charges | 786 |
| 1,257 |
| 478 |
| 2,725 |
| 5,246 |
| 1,512 |
| 3,127 |
| 342 |
| 4,981 |
|
| Special acquisition amortization | — |
| — |
| — |
| — |
| — |
| — |
| 2,110 |
| 2,490 |
| 4,600 |
|
| Special other charges, net of recoveries | (1,943 | ) | — |
| — |
| 9,434 |
| 7,491 |
| (1 | ) | 183 |
| 7,935 |
| 8,117 |
|
| Total GAAP operating income (loss) | 20,907 |
| 15,835 |
| 19,866 |
| 8,150 |
| 64,757 |
| 12,331 |
| 5,090 |
| (3,529 | ) | 13,892 |
|
| INTEREST EXPENSE, NET | (918 | ) | (891 | ) | (436 | ) | (407 | ) | (2,652 | ) | (640 | ) | (805 | ) | (828 | ) | (2,274 | ) |
| OTHER INCOME (EXPENSE), NET | 468 |
| 384 |
| (419 | ) | 722 |
| 1,156 |
| 506 |
| 104 |
| 587 |
| 1,197 |
|
| PRETAX INCOME (LOSS) | 20,457 |
| 15,328 |
| 19,012 |
| 8,465 |
| 63,261 |
| 12,197 |
| 4,389 |
| (3,770 | ) | 12,816 |
|
| (PROVISION FOR) BENEFIT FROM INCOME TAXES | (5,825 | ) | (3,402 | ) | (4,337 | ) | 690 |
| (12,875 | ) | (3,284 | ) | (2,517 | ) | (4,308 | ) | (10,109 | ) |
| EFFECTIVE TAX RATE | 28.5 | % | 22.2 | % | 22.8 | % | (8.2 | )% | 20.4 | % | 26.9 | % | 57.3 | % | (114.3 | )% | 78.9 | % |
| NET INCOME (LOSS) | $ | 14,632 |
| $ | 11,926 |
| $ | 14,675 |
| $ | 9,155 |
| $ | 50,386 |
| $ | 8,913 |
| $ | 1,872 |
| $ | (8,078 | ) | $ | 2,707 |
|
| Weighted Average Common Shares Outstanding (Diluted) | 17,741 |
| 17,767 |
| 17,779 |
| 17,782 |
| 17,768 |
| 17,712 |
| 16,900 |
| 16,485 |
| 17,034 |
|
| EARNINGS (LOSS) PER COMMON SHARE (Diluted) | $ | 0.82 |
| $ | 0.67 |
| $ | 0.83 |
| $ | 0.51 |
| $ | 2.84 |
| $ | 0.50 |
| $ | 0.11 |
| $ | (0.49 | ) | $ | 0.16 |
|
| ADJUSTED EBITDA | $ | 25,073 |
| $ | 27,536 |
| $ | 27,530 |
| $ | 26,789 |
| $ | 106,927 |
| $ | 18,580 |
| $ | 19,075 |
| $ | 23,582 |
| $ | 61,237 |
|
| ADJUSTED EBITDA AS A % OF SALES | 11.9 | % | 13.2 | % | 13.5 | % | 12.3 | % | 12.7 | % | 11.2 | % | 11.4 | % | 14.8 | % | 12.4 | % |
| CAPITAL EXPENDITURES | $ | 2,670 |
| $ | 2,933 |
| $ | 3,297 |
| $ | 3,910 |
| $ | 12,810 |
| $ | 1,983 |
| $ | 3,584 |
| $ | 2,837 |
| $ | 8,404 |
|
| | | | | | | | | | |
| | | | | | | | | | |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except percentages) UNAUDITED |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2014 | 2015 |
| | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
| FREE CASH FLOW AS % OF NET INCOME | 98 | % | 62 | % | 96 | % | 243 | % | 115 | % | (207 | )% | 239 | % | (27 | )% | (435 | )% |
| FREE CASH FLOW | $ | 14,387 |
| $ | 7,365 |
| $ | 14,015 |
| $ | 22,249 |
| $ | 58,016 |
| $ | (18,415 | ) | $ | 4,483 |
| $ | 2,169 |
| $ | (11,763 | ) |
| ADD: | | | | | | | | | |
| Capital Expenditures, net of sale proceeds | 2,670 |
| 2,933 |
| 3,297 |
| 3,910 |
| 12,810 |
| 1,983 |
| 3,584 |
| 2,837 |
| 8,404 |
|
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 17,057 |
| $ | 10,298 |
| $ | 17,312 |
| $ | 26,159 |
| $ | 70,826 |
| $ | (16,432 | ) | $ | 8,067 |
| $ | 5,006 |
| $ | (3,359 | ) |
| (CASH) NET DEBT | $ | (66,056 | ) | $ | (72,982 | ) | $ | (80,829 | ) | $ | (107,688 | ) | $ | (107,688 | ) | $ | (66,337 | ) | $ | 59,051 |
| $ | 57,277 |
| $ | 57,277 |
|
| ADD: | | | | | | | | | |
| Cash & Cash Equivalents | 122,189 |
| 116,421 |
| 114,671 |
| 121,372 |
| 121,372 |
| 103,883 |
| 55,027 |
| 53,822 |
| 53,822 |
|
| TOTAL DEBT | $ | 56,133 |
| $ | 43,439 |
| $ | 33,842 |
| $ | 13,684 |
| $ | 13,684 |
| $ | 37,546 |
| $ | 114,078 |
| $ | 111,099 |
| $ | 111,099 |
|
| TOTAL SHAREHOLDERS' EQUITY | $ | 492,601 |
| $ | 507,363 |
| $ | 508,035 |
| $ | 494,093 |
| $ | 494,093 |
| $ | 462,384 |
| $ | 421,070 |
| $ | 407,979 |
| $ | 407,979 |
|
| DEBT AS % OF EQUITY | 11 | % | 9 | % | 7 | % | 3 | % | 3 | % | 8 | % | 27 | % | 27 | % | 27 | % |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share) UNAUDITED |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | 2014 | 2015 |
| | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
| ADJUSTED OPERATING INCOME (LOSS) | $ | 19,750 |
| $ | 22,230 |
| $ | 23,194 |
| $ | 21,035 |
| $ | 86,210 |
| $ | 13,842 |
| $ | 12,516 |
| $ | 16,152 |
| $ | 42,510 |
|
| LESS: | | | | | | | | | |
| Restructuring related inventory charges | — |
| 5,139 |
| 2,850 |
| — |
| 7,989 |
| — |
| 2,005 |
| 6,412 |
| 8,417 |
|
| Impairment charges | — |
| — |
| — |
| 726 |
| 726 |
| — |
| — |
| 2,502 |
| 2,502 |
|
| Special restructuring charges | 786 |
| 1,257 |
| 478 |
| 2,725 |
| 5,246 |
| 1,512 |
| 3,127 |
| 342 |
| 4,981 |
|
| Special acquisition amortization | — |
| — |
| — |
| — |
| — |
| — |
| 2,110 |
| 2,490 |
| 4,600 |
|
| Special other charges, net of recoveries | (1,943 | ) | — |
| — |
| 9,434 |
| 7,491 |
| (1 | ) | 183 |
| 7,935 |
| 8,117 |
|
| OPERATING INCOME (LOSS) | $ | 20,907 |
| $ | 15,834 |
| $ | 19,866 |
| $ | 8,150 |
| $ | 64,757 |
| $ | 12,331 |
| $ | 5,090 |
| $ | (3,529 | ) | $ | 13,892 |
|
| | | | | | | | | | |
| ADJUSTED NET INCOME | $ | 13,916 |
| $ | 16,090 |
| $ | 16,827 |
| $ | 19,188 |
| $ | 66,019 |
| $ | 9,845 |
| $ | 6,848 |
| $ | 10,635 |
| $ | 27,328 |
|
| LESS: | |
|
|
|
| |
|
| | | | |
| Restructuring related inventory charges, net of tax | — |
| 3,316 |
| 1,839 |
| — |
| 5,155 |
| — |
| 1,339 |
| 6,412 |
| 7,751 |
|
| Impairment charges, net of tax | — |
| — |
| — |
| 726 |
| 726 |
| — |
| — |
| 2,502 |
| 2,502 |
|
| Special restructuring charges, net of tax | 508 |
| 848 |
| 313 |
| 1,763 |
| 3,432 |
| 1,079 |
| 2,175 |
| 304 |
| 3,558 |
|
| Special acquisition amortization, net of tax | — |
| — |
| — |
| — |
| — |
| — |
| 1,409 |
| 1,587 |
| 2,996 |
|
| Special other charges, net of recoveries, net of tax | (1,224 | ) | — |
| — |
| 7,544 |
| 6,320 |
| (147 | ) | 53 |
| 7,908 |
| 7,814 |
|
| NET INCOME (LOSS) | $ | 14,632 |
| $ | 11,926 |
| $ | 14,675 |
| $ | 9,155 |
| $ | 50,386 |
| $ | 8,913 |
| $ | 1,872 |
| $ | (8,078 | ) | $ | 2,707 |
|
| | | | | | | | | | |
| ADJUSTED EARNINGS PER SHARE (Diluted) | $ | 0.78 |
| $ | 0.91 |
| $ | 0.95 |
| $ | 1.08 |
| $ | 3.72 |
| $ | 0.56 |
| $ | 0.41 |
| $ | 0.64 |
| $ | 1.61 |
|
| LESS: | | | | | | | | | |
| Restructuring related inventory charges, net of tax | — |
| 0.19 |
| 0.10 |
| — |
| 0.29 |
| — |
| 0.08 |
| 0.39 |
| 0.46 |
|
| Impairment charges, net of tax | — |
| — |
| — |
| 0.04 |
| 0.04 |
| — |
| — |
| 0.15 |
| 0.15 |
|
| Special restructuring charges, net of tax | 0.03 |
| 0.05 |
| 0.02 |
| 0.10 |
| 0.20 |
| 0.06 |
| 0.13 |
| 0.02 |
| 0.20 |
|
| Special acquisition amortization, net of tax | — |
| — |
| — |
| — |
| — |
| — |
| 0.08 |
| 0.10 |
| 0.17 |
|
| Special other charges, net of recoveries, net of tax | (0.07 | ) | — |
| — |
| 0.42 |
| 0.35 |
| — |
| — |
| 0.47 |
| 0.47 |
|
| EARNINGS (LOSS) PER COMMON SHARE (Diluted) | $ | 0.82 |
| $ | 0.67 |
| $ | 0.83 |
| $ | 0.51 |
| $ | 2.84 |
| $ | 0.50 |
| $ | 0.11 |
| $ | (0.49 | ) | $ | 0.16 |
|
| | | | | | | | | | |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share) UNAUDITED |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | 2014 | 2015 |
| | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
| EBITDA | $ | 26,230 |
| $ | 21,140 |
| $ | 24,202 |
| $ | 13,904 |
| $ | 85,475 |
| $ | 17,068 |
| $ | 11,650 |
| $ | 3,789 |
| $ | 32,507 |
|
| LESS: | | | | | | | | | |
| Interest expense, net | (918 | ) | (891 | ) | (436 | ) | (407 | ) | (2,652 | ) | (640 | ) | (805 | ) | (828 | ) | (2,273 | ) |
| Depreciation | (4,069 | ) | (4,116 | ) | (3,978 | ) | (4,283 | ) | (16,446 | ) | (3,521 | ) | (3,629 | ) | (3,526 | ) | (10,676 | ) |
| Amortization | (786 | ) | (805 | ) | (776 | ) | (749 | ) | (3,116 | ) | (710 | ) | (2,827 | ) | (3,205 | ) | (6,742 | ) |
| (Provision for) benefit from income taxes | (5,825 | ) | (3,402 | ) | (4,337 | ) | 690 |
| (12,875 | ) | (3,284 | ) | (2,517 | ) | (4,308 | ) | (10,109 | ) |
| NET INCOME (LOSS) | $ | 14,632 |
| $ | 11,926 |
| $ | 14,675 |
| $ | 9,155 |
| $ | 50,386 |
| $ | 8,913 |
| $ | 1,872 |
| $ | (8,078 | ) | $ | 2,707 |
|
| ADJUSTED EBITDA | $ | 25,073 |
| $ | 27,536 |
| $ | 27,530 |
| $ | 26,789 |
| $ | 106,927 |
| $ | 18,580 |
| $ | 19,075 |
| $ | 23,470 |
| $ | 61,125 |
|
| LESS: | | | | | | | | | |
| Restructuring related inventory charges | — |
| (5,139 | ) | (2,850 | ) | — |
| (7,989 | ) | — |
| (2,005 | ) | (6,412 | ) | (8,417 | ) |
| Impairment charges | — |
| — |
| — |
| (726 | ) | (726 | ) | — |
| — |
| (2,502 | ) | (2,502 | ) |
| Special restructuring charges | (786 | ) | (1,257 | ) | (478 | ) | (2,725 | ) | (5,246 | ) | (1,512 | ) | (3,127 | ) | (342 | ) | (4,981 | ) |
| Special acquisition amortization | — |
| — |
| — |
| — |
| — |
| — |
| (2,110 | ) | (2,490 | ) | (4,600 | ) |
| Special other charges, net of recoveries | 1,943 |
| — |
| — |
| (9,434 | ) | (7,491 | ) | 1 |
| (183 | ) | (7,935 | ) | (8,117 | ) |
| Interest expense, net | (918 | ) | (891 | ) | (436 | ) | (407 | ) | (2,652 | ) | (641 | ) | (805 | ) | (828 | ) | (2,274 | ) |
| Depreciation | (4,069 | ) | (4,116 | ) | (3,978 | ) | (4,283 | ) | (16,446 | ) | (3,521 | ) | (3,629 | ) | (3,526 | ) | (10,676 | ) |
| Amortization | (786 | ) | (805 | ) | (776 | ) | (749 | ) | (3,116 | ) | (710 | ) | (2,827 | ) | (3,205 | ) | (6,742 | ) |
| (Provision for) benefit from income taxes | (5,825 | ) | (3,402 | ) | (4,337 | ) | 690 |
| (12,875 | ) | (3,284 | ) | (2,517 | ) | (4,308 | ) | (10,109 | ) |
| NET INCOME (LOSS) | $ | 14,632 |
| $ | 11,926 |
| $ | 14,675 |
| $ | 9,155 |
| $ | 50,386 |
| $ | 8,913 |
| $ | 1,872 |
| $ | (8,078 | ) | $ | 2,707 |
|
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except per share data) UNAUDITED
|
| | | | | | | | | | | | | | | |
| | 2014 |
| | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL |
| NET REVENUES EXCLUDING DIVESTITURES | $ | 198,204 |
| $ | 194,349 |
| $ | 189,705 |
| $ | 207,970 |
| $ | 790,228 |
|
| ADD: | | | | | |
| Energy divestiture | 10,554 |
| 10,037 |
| 10,667 |
| 8,465 |
| 39,723 |
|
| Aerospace & Defense divestiture | 2,428 |
| 3,498 |
| 3,446 |
| 2,123 |
| 11,495 |
|
| NET REVENUES | $ | 211,186 |
| $ | 207,884 |
| $ | 203,818 |
| $ | 218,558 |
| $ | 841,446 |
|
| ADJUSTED EARNINGS PER SHARE EXCLUDING DIVESTITURES (Diluted) | 0.79 |
| 0.88 |
| 0.89 |
| 1.05 |
| 3.61 |
|
| ADD: | | | | | |
| Divestitures | (0.01 | ) | 0.03 |
| 0.06 |
| 0.03 |
| 0.11 |
|
| ADJUSTED EARNINGS PER SHARE (Diluted) | $ | 0.78 |
| $ | 0.91 |
| $ | 0.95 |
| $ | 1.08 |
| $ | 3.72 |
|
