EXHIBIT 99.1
PRESS RELEASE
| Contact: | Kenneth W. Smith | |
| Chief Financial Officer | ||
| CIRCOR International, Inc. | ||
| (781) 270-1200 |
CIRCOR Posts Record Earnings of $0.38 Per Share in the Second Quarter
| • | Earnings before special charges increase 52% to $0.39 per share as revenues rise 25% |
| • | Shipments of delayed project orders boost Energy Products segment results |
| • | Market conditions remain favorable in primary markets |
Burlington, MA, August 4, 2005
CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other fluid control products for the instrumentation, aerospace, thermal fluid and energy markets, today announced results for the second quarter ended July 3, 2005. Net income for the second quarter of 2005 was $6.2 million, or $0.38 per diluted share, compared to $4.1 million, or $0.26 per diluted share, for the 2004 second quarter. Revenues for the 2005 second quarter were $118.7 million, an increase of 25% from $94.6 million for the second quarter of 2004.
For the six months ended July 3, 2005, net income was $11.3 million, or $0.70 per diluted share. Net income for the six months ended June 27, 2004, totaled $8.4 million, or $0.53 per diluted share. Revenues for the first six months of 2005 were $220.9 million, an increase of 19% from $185.2 million for the first six months of 2004.
The Company indicated that higher shipment levels helped drive its second quarter results to the upper end of the guidance provided in the Company’s April 27, 2005, press release and April 28, 2005, investor conference call. The Company’s Chairman and Chief Executive Officer, David A. Bloss, Sr., said, “Our results for the quarter reflect the shipment of delayed project orders by our Energy Products segment and increased business activity in our industrial and aerospace markets. Despite the variable pattern of large project order bookings within our Energy Products segment, quotation activity remains strong and our backlogs continue to be well ahead of last year in substantially all of the Company’s primary markets.”
During the first half of 2005, the Company generated $12.2 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) compared to $9.5 million of free cash flow generated in the first half of 2004. Uses of free cash flow for 2005 include incremental capital expenditures totaling $4.1 million related to two new facilities, one in the Netherlands and an expanded one being constructed in China.
1
Revenues for the Company’s CIRCOR Energy Products segment increased 40% to $55.7 million from $39.7 million in the second quarter of last year and were up 23% on a year-to-date basis primarily due to the increase in shipments to international oil and gas projects. Incoming orders for the quarter were down 15% compared to the second quarter 2004 and, sequentially, decreased 7%. Mr. Bloss reiterated, however, that, “Market activity remains very healthy within the oil and gas sector. The negative order comparisons this quarter are primarily the result of the high volume of large project orders booked during the second quarter of 2004. Incoming orders for this segment have increased 8% on a year-to-date basis while backlogs have increased 22% compared to last year. We expect that project bookings for the third quarter will be healthy based upon letters of intent we have received thus far.” Mr. Bloss added, “This segment achieved adjusted operating margins of 10.7% (excluding special charge items) for the second quarter 2005 primarily due to record second quarter shipments from our Pibiviesse business unit in Italy that serves the international project markets as well as profitability improvements in our North American operations. While producing higher margins than the average of the past several quarters, these operational improvements were somewhat offset by higher metals costs and approximately $0.2 million in pretax costs associated with the initial phases of the consolidation of the Mallard operations into our Oklahoma City facility.”
CIRCOR’s Instrumentation and Thermal Fluid Controls Products segment revenues were up 15% to $62.9 million for the second quarter compared to $54.9 million for the same period last year and up 16% on a year-to-date basis. Excluding acquisitions, incoming orders for this segment were up 10% compared to the second quarter last year, while backlog at quarter-end increased 5% versus last year, and increased 4% sequentially. Operating income for this segment increased 22% during the second quarter of 2005 and adjusted operating margin was 12.1% (excluding special charge items) compared to 11.4% during the same period last year. Mr. Bloss noted, “The results for this segment benefited from stronger industrial market conditions that were partially offset by two factors, higher metal costs and unabsorbed manufacturing expenses due to manufacturing process improvement activities that allowed us to reduce the amount of inventory we carry at our instrumentation products operations.”
CIRCOR provided guidance for its third quarter 2005 results, indicating that it expects earnings to be in the range of $0.28 to $0.31 per diluted share excluding special charges and other costs associated with the consolidation of the Mallard operations into the Oklahoma City facility, compared to $0.22 per share in the third quarter last year. Third quarter estimates include an anticipated $5.0 million to $6.0 million reduction of inventory as a consequence of the progress in the Company’s previously announced implementation of lean operating principles at its major manufacturing facilities. Mr. Bloss commented on the Company’s outlook stating, “Our transition to a lean operating environment is starting to allow us to reduce floor space and inventory requirements and to complete our latest phase of facility consolidations. While these actions will have some negative impacts on near term results due to the costs of implementation and related under absorption, they are designed to improve our operating performance going forward. In addition, our healthy market conditions should allow us to accelerate our transition as we increase our inventory turns within a strong demand environment.”
CIRCOR International has scheduled a conference call to review its results for the second quarter of 2005 on Friday, August 5, 2005, at 2:00 pm ET. Interested parties may access the call by dialing (800) 289-0496 or (913) 981-5519. A replay of the call will be available from 5:00 pm ET on August 5, 2005 through midnight on August 11, 2005. To access the replay, interested
2
parties should dial (888) 203-1112 or (719) 457-0820 and enter confirmation code #9881426 when prompted. The presentation slides that will be discussed in the conference call are expected to be available on Thursday, August 4, 2005, 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. An audio recording of the conference call also is expected to be posted on the company’s website by August 9, 2005.
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 are located at 25 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,” “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 lean and acquisition strategies. 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.
3
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
UNAUDITED
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 3, 2005 | June 27, 2004 | July 3, 2005 | June 27, 2004 | |||||||||||||
Net revenues | $ | 118,657 | $ | 94,552 | $ | 220,895 | $ | 185,249 | ||||||||
Cost of revenues | 84,121 | 66,878 | 153,418 | 129,282 | ||||||||||||
GROSS PROFIT | 34,536 | 27,674 | 67,477 | 55,967 | ||||||||||||
Selling, general and administrative expenses | 24,043 | 20,557 | 48,134 | 41,082 | ||||||||||||
Special charges | 133 | — | 437 | 38 | ||||||||||||
OPERATING INCOME | 10,360 | 7,117 | 18,906 | 14,847 | ||||||||||||
Other (income) expense: | ||||||||||||||||
Interest income | (229 | ) | (184 | ) | (314 | ) | (355 | ) | ||||||||
Interest expense | 896 | 1,156 | 1,768 | 2,347 | ||||||||||||
Other (income) expense, net | 204 | (193 | ) | 23 | (50 | ) | ||||||||||
Total other expense | 871 | 779 | 1,477 | 1,942 | ||||||||||||
INCOME BEFORE INCOME TAXES | 9,489 | 6,338 | 17,429 | 12,905 | ||||||||||||
Provision for income taxes | 3,321 | 2,216 | 6,100 | 4,515 | ||||||||||||
NET INCOME | $ | 6,168 | $ | 4,122 | $ | 11,329 | $ | 8,390 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.39 | $ | 0.27 | $ | 0.73 | $ | 0.55 | ||||||||
Diluted | $ | 0.38 | $ | 0.26 | $ | 0.70 | $ | 0.53 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 15,676 | 15,334 | 15,597 | 15,321 | ||||||||||||
Diluted | 16,171 | 15,908 | 16,089 | 15,946 | ||||||||||||
4
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
| Six Months Ended | ||||||||
| July 3, 2005 | June 27, 2004 | |||||||
| OPERATING ACTIVITIES | ||||||||
Net income | $ | 11,329 | $ | 8,390 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 5,183 | 5,033 | ||||||
Amortization | 265 | 115 | ||||||
Compensation expense of stock-based plans | 475 | 304 | ||||||
Loss on disposal of property, plant and equipment | 20 | 11 | ||||||
Loss on write-down of property, plant and equipment | — | 100 | ||||||
Gain on disposal of assets held for sale | — | (387 | ) | |||||
Gain on sale of marketable securities | — | — | ||||||
Equity in undistributed earnings of affiliates | (105 | ) | (44 | ) | ||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | ||||||||
Trade accounts receivable | (5,793 | ) | 1,785 | |||||
Inventories | (9,745 | ) | (5,624 | ) | ||||
Prepaid expenses and other assets | (290 | ) | (729 | ) | ||||
Accounts payable, accrued expenses and other liabilities | 18,793 | 4,593 | ||||||
Net cash provided by operating activities | 20,132 | 13,547 | ||||||
| INVESTING ACTIVITIES | ||||||||
Additions to property, plant and equipment | (6,804 | ) | (2,869 | ) | ||||
Proceeds from disposal of property, plant and equipment | 7 | 732 | ||||||
Proceeds from sale of assets held for sale | — | 3,030 | ||||||
Business acquisitions, net of cash acquired | (41,497 | ) | (12,156 | ) | ||||
Purchase price adjustments on previous acquisitions | (596 | ) | (1,010 | ) | ||||
Purchase of investments | — | (1,456 | ) | |||||
Proceeds from sale of investments | — | 1,456 | ||||||
Other | — | (15 | ) | |||||
Net cash used in investing activities | (48,890 | ) | (12,288 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
Proceeds from long-term borrowings | 2,645 | 125 | ||||||
Payments of long-term debt | (3,135 | ) | (3,462 | ) | ||||
Dividends paid | (1,175 | ) | (1,149 | ) | ||||
Proceeds from the exercise of stock options | 2,756 | 243 | ||||||
Net cash provided by (used in) financing activities | 1,091 | (4,243 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (1,717 | ) | (691 | ) | ||||
DECREASE IN CASH AND CASH EQUIVALENTS | (29,384 | ) | (3,675 | ) | ||||
Cash and cash equivalents at beginning of year | 58,653 | 58,202 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 29,269 | $ | 54,527 | ||||
5
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
UNAUDITED
| July 3, 2005 | December 31, 2004 | |||||
| ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 29,269 | $ | 58,653 | ||
Investments | 4,026 | 4,155 | ||||
Trade accounts receivable, less allowance for doubtful accounts of $2,150 and $2,549, respectively | 68,777 | 64,521 | ||||
Inventories | 114,491 | 105,150 | ||||
Prepaid expenses and other current assets | 4,746 | 2,414 | ||||
Deferred income taxes | 4,705 | 6,953 | ||||
Assets held for sale | 1,319 | — | ||||
Total Current Assets | 227,333 | 241,846 | ||||
Property, Plant and Equipment, net | 59,871 | 59,302 | ||||
Other Assets: | ||||||
Goodwill | 143,755 | 120,307 | ||||
Intangibles, net | 4,840 | 1,424 | ||||
Other assets | 10,194 | 5,539 | ||||
Total Assets | $ | 445,993 | $ | 428,418 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current Liabilities: | ||||||
Accounts payable | $ | 48,018 | $ | 38,023 | ||
Accrued expenses and other current liabilities | 33,220 | 30,490 | ||||
Income taxes payable | 2,432 | 1,362 | ||||
Notes payable and current portion of long-term debt | 15,550 | 15,051 | ||||
Total Current Liabilities | 99,220 | 84,926 | ||||
Long-Term Debt, net of current portion | 28,116 | 27,829 | ||||
Deferred Income Taxes | 7,651 | 6,932 | ||||
Other Non-Current Liabilities | 10,863 | 10,646 | ||||
Minority Interest | — | 4,650 | ||||
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 15,705,399 and 15,430,305 issued and outstanding, respectively | 157 | 154 | ||||
Additional paid-in capital | 212,966 | 208,392 | ||||
Retained earnings | 74,447 | 64,293 | ||||
Accumulated other comprehensive income | 12,573 | 20,596 | ||||
Total Shareholders’ Equity | 300,143 | 293,435 | ||||
Total Liabilities and Shareholders’ Equity | $ | 445,993 | $ | 428,418 | ||
6
CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in thousands)
UNAUDITED
| Three Months Ended | Six Months Ended | |||||||||||
| July 3, 2005 | June 27, 2004 | July 3, 2005 | June 27, 2004 | |||||||||
| ORDERS | ||||||||||||
Instrumentation & Thermal Fluid Controls | $ | 62,087 | $ | 54,153 | $ | 128,521 | $ | 111,253 | ||||
Energy Products | 42,188 | 49,598 | 87,713 | 81,473 | ||||||||
Total orders | $ | 104,275 | $ | 103,751 | $ | 216,234 | $ | 192,726 | ||||
| July 3, 2005 | December 31, 2004 | |||||
| BACKLOG | ||||||
Instrumentation & Thermal Fluid Controls | $ | 61,970 | $ | 39,819 | ||
Energy Products | 66,677 | 75,923 | ||||
Total backlog | $ | 128,647 | $ | 115,742 | ||
Note: Backlog includes all unshipped customer orders.
7
CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share)
UNAUDITED
| 2004 | 2005 | |||||||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | YTD | 1ST QTR | 2ND QTR | YTD | |||||||||||||||||||||||||
| NET REVENUES | ||||||||||||||||||||||||||||||||
Instrumentation & Thermal Fluid Controls (TFC) | $ | 51,639 | $ | 54,864 | $ | 52,966 | $ | 59,187 | $ | 218,656 | $ | 61,025 | $ | 62,908 | $ | 123,933 | ||||||||||||||||
Energy Products | 39,058 | 39,688 | 36,794 | 47,638 | 163,178 | 41,213 | 55,749 | 96,962 | ||||||||||||||||||||||||
Total | 90,697 | 94,552 | 89,760 | 106,825 | 381,834 | 102,238 | 118,657 | 220,895 | ||||||||||||||||||||||||
| OPERATING MARGIN | ||||||||||||||||||||||||||||||||
Instrumentation & TFC | 11.2 | % | 11.4 | % | 10.9 | % | 10.5 | % | 11.0 | % | 14.8 | % | 12.1 | % | 13.4 | % | ||||||||||||||||
Energy Products | 10.9 | % | 7.7 | % | 7.8 | % | -2.3 | % | 5.6 | % | 8.0 | % | 10.7 | % | 9.5 | % | ||||||||||||||||
Segment operating margin | 11.1 | % | 9.8 | % | 9.7 | % | 4.7 | % | 8.7 | % | 12.0 | % | 11.5 | % | 11.7 | % | ||||||||||||||||
Corporate expenses | -2.5 | % | -2.3 | % | -2.9 | % | -3.6 | % | -2.8 | % | -3.4 | % | -2.6 | % | -3.0 | % | ||||||||||||||||
Special charges | 0.0 | % | 0.0 | % | -0.3 | % | 0.0 | % | -0.1 | % | -0.3 | % | -0.1 | % | -0.2 | % | ||||||||||||||||
Total operating margin | 8.5 | % | 7.5 | % | 6.5 | % | 1.2 | % | 5.7 | % | 8.4 | % | 8.7 | % | 8.6 | % | ||||||||||||||||
| OPERATING INCOME | ||||||||||||||||||||||||||||||||
Instrumentation & TFC (excl. special charges) | 5,776 | 6,239 | 5,786 | 6,188 | 23,989 | 9,004 | 7,641 | 16,645 | ||||||||||||||||||||||||
Energy Products (excl. special charges) | 4,251 | 3,066 | 2,877 | (1,116 | ) | 9,078 | 3,290 | 5,957 | 9,247 | |||||||||||||||||||||||
Segment operating income (excl. special charges) | 10,027 | 9,305 | 8,663 | 5,072 | 33,067 | 12,294 | 13,598 | 25,892 | ||||||||||||||||||||||||
Corporate expenses | (2,259 | ) | (2,188 | ) | (2,585 | ) | (3,798 | ) | (10,830 | ) | (3,443 | ) | (3,105 | ) | (6,548 | ) | ||||||||||||||||
Special charges | (38 | ) | — | (265 | ) | — | (303 | ) | (305 | ) | (133 | ) | (438 | ) | ||||||||||||||||||
Total operating income | 7,730 | 7,117 | 5,813 | 1,274 | 21,934 | 8,546 | 10,360 | 18,906 | ||||||||||||||||||||||||
INTEREST EXPENSE, NET | (1,020 | ) | (972 | ) | (1,001 | ) | (697 | ) | (3,690 | ) | (787 | ) | (667 | ) | (1,454 | ) | ||||||||||||||||
OTHER (EXPENSE) INCOME, NET | (143 | ) | 193 | 241 | (57 | ) | 234 | 181 | (204 | ) | (23 | ) | ||||||||||||||||||||
PRETAX INCOME | 6,567 | 6,338 | 5,053 | 520 | 18,478 | 7,940 | 9,489 | 17,429 | ||||||||||||||||||||||||
PROVISION FOR INCOME TAXES | (2,299 | ) | (2,216 | ) | (1,770 | ) | (390 | ) | (6,675 | ) | (2,779 | ) | (3,321 | ) | (6,100 | ) | ||||||||||||||||
EFFECTIVE TAX RATE | 35.0 | % | 35.0 | % | 35.0 | % | 75.0 | % | 36.1 | % | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||||||||||
NET INCOME | $ | 4,268 | $ | 4,122 | $ | 3,283 | $ | 130 | $ | 11,803 | $ | 5,161 | $ | 6,168 | $ | 11,329 | ||||||||||||||||
Weighted Average Common Shares Outstanding (Diluted) | 16,001 | 15,908 | 15,825 | 15,932 | 15,877 | 16,054 | 16,171 | 16,089 | ||||||||||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.27 | $ | 0.26 | $ | 0.21 | $ | 0.01 | $ | 0.74 | $ | 0.32 | $ | 0.38 | $ | 0.70 | ||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) excluding special charges | $ | 0.27 | $ | 0.26 | $ | 0.22 | $ | 0.01 | $ | 0.76 | $ | 0.33 | $ | 0.39 | $ | 0.72 | ||||||||||||||||
EBIT | $ | 7,587 | $ | 7,310 | $ | 6,054 | $ | 1,217 | $ | 22,168 | $ | 8,727 | $ | 10,156 | $ | 18,883 | ||||||||||||||||
Depreciation | 2,680 | 2,353 | 2,528 | 2,103 | 9,664 | 2,597 | 2,586 | 5,183 | ||||||||||||||||||||||||
Amortization of intangibles | 77 | 38 | 38 | 39 | 192 | 38 | 227 | 265 | ||||||||||||||||||||||||
EBITDA | $ | 10,344 | $ | 9,701 | $ | 8,620 | $ | 3,359 | $ | 32,024 | $ | 11,362 | $ | 12,969 | $ | 24,331 | ||||||||||||||||
EBITDA AS A PERCENT OF SALES | 11.4 | % | 10.3 | % | 9.6 | % | 3.1 | % | 8.4 | % | 11.1 | % | 10.9 | % | 11.0 | % | ||||||||||||||||
CAPITAL EXPENDITURES | $ | 1,294 | $ | 1,575 | $ | 757 | $ | 1,661 | $ | 5,287 | $ | 3,668 | $ | 3,136 | $ | 6,804 | ||||||||||||||||
8
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED
GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands)
UNAUDITED
| 2004 | 2005 | |||||||||||||||||||||||||||||||||
| 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] | $ | 2,254 | $ | 7,275 | $ | 4,438 | $ | 7,692 | $ | 21,659 | $ | (412 | ) | $ | 12,565 | $ | 12,153 | |||||||||||||||||
ADD: | Capital expenditures | 1,294 | 1,575 | 757 | 1,661 | 5,287 | 3,668 | 3,136 | 6,804 | |||||||||||||||||||||||||
Dividends paid | 573 | 576 | 576 | 578 | 2,303 | 586 | 589 | 1,175 | ||||||||||||||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 4,121 | $ | 9,426 | $ | 5,771 | $ | 9,931 | $ | 29,249 | $ | 3,842 | $ | 16,290 | $ | 20,132 | ||||||||||||||||||
NET (CASH) DEBT [TOTAL DEBT LESS CASH AND CASH EQUIVALENTS LESS INVESTMENTS] | $ | (8,706 | ) | $ | (4,054 | ) | $ | (9,918 | ) | $ | (19,928 | ) | $ | (19,928 | ) | $ | 15,367 | $ | 10,371 | $ | 10,371 | |||||||||||||
ADD: | Cash and cash equivalents | 59,963 | 54,527 | 60,055 | 58,653 | 58,653 | 24,942 | 29,269 | 29,269 | |||||||||||||||||||||||||
| Investments | 7,679 | 7,517 | 7,953 | 4,155 | 4,155 | 4,117 | 4,026 | 4,026 | ||||||||||||||||||||||||||
TOTAL DEBT | $ | 58,936 | $ | 57,990 | $ | 58,090 | $ | 42,880 | $ | 42,880 | $ | 44,426 | $ | 43,666 | $ | 43,666 | ||||||||||||||||||
NET DEBT AS % OF NET CAPITALIZATION | -3.3 | % | -1.5 | % | -3.6 | % | -7.3 | % | -7.3 | % | 4.9 | % | 3.3 | % | 3.3 | % | ||||||||||||||||||
NET CAPITALIZATION [TOTAL DEBT PLUS SHAREHOLDERS’ EQUITY LESS CASH AND CASH EQUIVALENTS, LESS INVESTMENTS] | $ | 267,728 | $ | 276,260 | $ | 275,870 | $ | 273,507 | $ | 273,507 | $ | 313,378 | $ | 310,514 | $ | 310,514 | ||||||||||||||||||
LESS: | Total debt | (58,936 | ) | (57,990 | ) | (58,090 | ) | (42,880 | ) | (42,880 | ) | (44,426 | ) | (43,666 | ) | (43,666 | ) | |||||||||||||||||
ADD: | Cash and cash equivalents | 59,963 | 54,527 | 60,055 | 58,653 | 58,653 | 24,942 | 29,269 | 29,269 | |||||||||||||||||||||||||
Investments | 7,679 | 7,517 | 7,953 | 4,155 | 4,155 | 4,117 | 4,026 | 4,026 | ||||||||||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 276,434 | 280,314 | 285,788 | 293,435 | 293,435 | 298,011 | 300,143 | 300,143 | ||||||||||||||||||||||||||
ADD: | Total debt | 58,936 | 57,990 | 58,090 | 42,880 | 42,880 | 44,426 | 43,666 | 43,666 | |||||||||||||||||||||||||
TOTAL CAPITAL | $ | 335,370 | $ | 338,304 | $ | 343,878 | $ | 336,315 | $ | 336,315 | $ | 342,437 | $ | 343,809 | $ | 343,809 | ||||||||||||||||||
TOTAL DEBT / TOTAL CAPITAL | 17.6 | % | 17.1 | % | 16.9 | % | 12.7 | % | 12.7 | % | 13.0 | % | 12.7 | % | 12.7 | % | ||||||||||||||||||
EBIT [NET INCOME LESS INTEREST EXPENSE, NET] | $ | 7,587 | $ | 7,310 | $ | 6,054 | $ | 1,217 | $ | 22,168 | $ | 8,727 | $ | 10,156 | $ | 18,883 | ||||||||||||||||||
LESS: | Interest expense, net | (1,020 | ) | (972 | ) | (1,001 | ) | (697 | ) | (3,690 | ) | (787 | ) | (667 | ) | (1,454 | ) | |||||||||||||||||
Provision for income taxes | (2,299 | ) | (2,216 | ) | (1,770 | ) | (390 | ) | (6,675 | ) | (2,779 | ) | (3,321 | ) | (6,100 | ) | ||||||||||||||||||
NET INCOME | $ | 4,268 | $ | 4,122 | $ | 3,283 | $ | 130 | $ | 11,803 | $ | 5,161 | $ | 6,168 | $ | 11,329 | ||||||||||||||||||
EBITDA [NET INCOME LESS INTEREST EXPENSE, NET LESS DEPRECIATION LESS AMORTIZATION LESS TAXES] | $ | 10,344 | $ | 9,701 | $ | 8,620 | $ | 3,359 | $ | 32,024 | $ | 11,362 | $ | 12,969 | $ | 24,331 | ||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||||||
| Interest expense, net | (1,020 | ) | (972 | ) | (1,001 | ) | (697 | ) | (3,690 | ) | (787 | ) | (667 | ) | (1,454 | ) | ||||||||||||||||||
| Depreciation | (2,680 | ) | (2,353 | ) | (2,528 | ) | (2,103 | ) | (9,664 | ) | (2,597 | ) | (2,586 | ) | (5,183 | ) | ||||||||||||||||||
| Amortization of intangibles | (77 | ) | (38 | ) | (38 | ) | (39 | ) | (192 | ) | (38 | ) | (227 | ) | (265 | ) | ||||||||||||||||||
| Provision for income taxes | (2,299 | ) | (2,216 | ) | (1,770 | ) | (390 | ) | (6,675 | ) | (2,779 | ) | (3,321 | ) | (6,100 | ) | ||||||||||||||||||
NET INCOME | $ | 4,268 | $ | 4,122 | $ | 3,283 | $ | 130 | $ | 11,803 | $ | 5,161 | $ | 6,168 | $ | 11,329 | ||||||||||||||||||
INCOME EXCLUDING SPECIAL CHARGES [NET INCOME LESS SPECIAL CHARGES, NET OF TAX] | $ | 4,293 | $ | 4,122 | $ | 3,455 | $ | 130 | $ | 11,997 | $ | 5,359 | $ | 6,254 | $ | 11,614 | ||||||||||||||||||
LESS: | Special charges, net of tax | (25 | ) | — | (172 | ) | — | (194 | ) | (198 | ) | (86 | ) | (285 | ) | |||||||||||||||||||
NET INCOME | $ | 4,268 | $ | 4,122 | $ | 3,283 | $ | 130 | $ | 11,803 | $ | 5,161 | $ | 6,168 | $ | 11,329 | ||||||||||||||||||
9