EXHIBIT 99.1
PRESS RELEASE
CIRCOR International Reports Second Quarter 2011 Financial Results
Ÿ Revenues Increase 14% Year Over Year on Strong Demand
Ÿ 25% Order Growth with Backlog up Nearly 40% Year Over Year
Ÿ Reports EPS of $0.43
Burlington, MA – August 4, 2011 –CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for the industrial, aerospace and energy markets, today announced financial results for the second quarter ended July 3, 2011.
Management Comments on Second-Quarter Results
“Revenues grew 14% year over year as a result of strong operating performance in our aerospace, flow technology and short-cycle energy businesses,” said Chairman and Chief Executive Officer Bill Higgins. “Orders for the quarter increased 25% year over year as a result of strengthening demand across nearly all end markets and contributions from acquisitions. Despite shipping delays in a few large projects in the quarter, which resulted in revenues and earnings below expectations, we continue to expect revenues and earnings to grow through second half of 2011 and into next year.”
Consolidated Results
Revenues for the second quarter of 2011 were $191.9 million, a 14% increase from $168.0 million in the second quarter of 2010. CIRCOR reported net income for the second quarter of 2011 of $7.5 million, or $0.43 per diluted share, compared with a net loss of $11.2 million, or $0.66 per share, for the second quarter of 2010. Excluding Leslie asbestos and bankruptcy charges, net of tax, earnings per share for the second quarter of 2010 were $0.44.
Consolidated adjusted operating earnings (which exclude Leslie asbestos and bankruptcy charges) were $12.4 million for the second quarter of 2011 compared with $11.6 million for the second quarter of 2010, an increase of 7%.
Consolidated Orders and Free Cash Flow
The Company received orders totaling $213.4 million during the second quarter of 2011, an increase of 25% compared with the second quarter of 2010. Backlog as of July 3, 2011 was $442.0 million, up 39% from backlog of $317.6 million at July 4, 2010.
During the second quarter of 2011, the Company used $76.4 million of free cash flow (defined as net cash from operating activities less capital expenditures), which included the payment of $76.6 million in April 2011 to fund the Leslie Controls Bankruptcy Trust. This compares to $12.6 million of free cash flow generated in the second quarter of 2010.
Energy
CIRCOR’s Energy segment revenues of $82.0 million for the quarter ended July 3, 2011 represent a 6% increase from $77.3 million for the quarter ended July 4, 2010. The increase includes 4% growth from the February 2011 Brazilian energy acquisition and a positive foreign currency impact of 5%. In addition, organic growth declined by 4% primarily due to lower revenue from large international projects, partially offset by strength across the balance of the Energy segment.
Incoming orders for the second quarter of 2011 were $103.2 million, an increase of 30% year over year due to growth across the majority of the segment’s energy businesses. Ending backlog totaled $225.7 million, an increase of 81% year over year.
For the second quarter of 2011, the Energy segment adjusted operating margin of 5.3% was down from 8.3% for the second quarter of 2010 primarily due to lower organic volume and associated leverage as well as the impact of the Brazil energy acquisition, including integration activities.
Aerospace
CIRCOR’s Aerospace segment revenues increased by 30% to $36.0 million for the second quarter of 2011 from $27.8 million in the second quarter of 2010. The increase in revenues was driven by 18% growth from acquisitions, 7% organic growth, and a 5% positive foreign currency impact. The acquisition growth was primarily related to the August 2010 aerospace landing gear acquisition.
Incoming orders for the second quarter of 2011 were $33.4 million, an increase of 24% year over year, primarily due to the positive impact of acquisitions. Ending backlog totaled $133.1 million, an increase of 14% year over year.
The Aerospace segment’s adjusted operating margin was 11.2% for the second quarter of 2011, compared with 14.6% for the second quarter of 2010. Second-quarter adjusted operating margins decreased primarily due to unfavorable product mix and development costs associated with new program wins.
Flow Technologies
CIRCOR’s Flow Technologies segment revenues increased 17% to $73.9 million for the second quarter of 2011 from $62.9 million in the second quarter of 2010. Second-quarter 2011 revenues reflected organic growth of 12% with strength across nearly all end markets, growth from acquisitions of 1%, and a favorable foreign currency impact of 4%.
Incoming orders for this segment were $76.8 million for the second quarter of 2011, an increase of 19% year over year due to an improvement in most markets. Ending backlog totaled $83.2 million, an increase of 10% year over year.
This segment’s adjusted operating margin, which excludes the impact of Leslie asbestos and bankruptcy charges, for the second quarter of 2011, was 12.4%, compared with 10.1% in the second quarter of 2010. The second-quarter year-over-year increase was primarily due to revenue leverage.
Business and Financial Outlook
“Most of our markets have seen strong growth during the first half of 2011 and we have a sizable and growing backlog across all businesses to work with going forward,” said Higgins. “With this as our base, we are focused on converting the growing backlog, leveraging our newer acquisitions for growth, and expanding margins in our energy projects.”
CIRCOR currently expects revenues for the third quarter of 2011 in the range of $202 million to $212 million. Earnings are expected to be in the range of $0.47 to $0.57 per diluted share. CIRCOR’s guidance for earnings per share assumes a 30% tax rate and that exchange rates remain at present levels.
Conference Call Information
CIRCOR International will hold a conference call to review its financial results today, August 4, 2011, at 10:00 a.m. ET. Those who wish to listen to the conference call and view the accompanying presentation slides should visit“Webcasts & Presentations” in the“Investors” portion of the CIRCOR website. The live call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. If you are unable to listen to the live call, 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 diluted share, 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 third-quarter revenue and earnings guidance. 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, 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 valves and other highly engineered products for the industrial, aerospace and energy markets. With more than 7,000 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands. CIRCOR’s culture, built on the CIRCOR Business System, is defined by the Company’s commitment to attracting, developing and retaining the best talent and pursuing continuous improvement in all aspects of its business and operations. The Company’s strategy includes growing organically by investing in new, differentiated products; adding value to component products; and increasing the development of mission-critical subsystems and solutions. CIRCOR also plans to leverage its strong balance sheet to acquire strategically complementary businesses. For more information, visit the Company’s investor relations web site at http://investors.circor.com.
Contact:
Frederic M. Burditt
Chief Financial Officer
CIRCOR International
(781) 270-1200
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
UNAUDITED
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 3, 2011 | July 4, 2010 | July 3, 2011 | July 4, 2010 | |||||||||||||
Net revenues | $ | 191,908 | $ | 168,005 | $ | 395,278 | $ | 314,274 | ||||||||
Cost of revenues | 137,302 | 118,463 | 284,444 | 222,013 | ||||||||||||
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GROSS PROFIT | 54,606 | 49,542 | 110,834 | 92,261 | ||||||||||||
Selling, general and administrative expenses | 42,180 | 37,959 | 84,635 | 73,376 | ||||||||||||
Leslie asbestos and bankruptcy charges (recoveries) | (124 | ) | 28,908 | 877 | 28,260 | |||||||||||
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OPERATING INCOME (LOSS) | 12,550 | (17,325 | ) | 25,322 | (9,375 | ) | ||||||||||
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Other expense (income): | ||||||||||||||||
Interest income | (54 | ) | (50 | ) | (97 | ) | (92 | ) | ||||||||
Interest expense | 1,286 | 636 | 2,102 | 1,233 | ||||||||||||
Other expense, net | 560 | 258 | 1,476 | 207 | ||||||||||||
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Total other expense | 1,792 | 844 | 3,481 | 1,348 | ||||||||||||
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INCOME (LOSS) BEFORE INCOME TAXES | 10,758 | (18,169 | ) | 21,841 | (10,723 | ) | ||||||||||
Provision (Benefit) for income taxes | 3,261 | (6,928 | ) | 6,439 | (5,216 | ) | ||||||||||
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NET INCOME (LOSS) | $ | 7,497 | $ | (11,241 | ) | $ | 15,402 | $ | (5,507 | ) | ||||||
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Earnings per common share: | ||||||||||||||||
Basic | $ | 0.43 | $ | (0.66 | ) | $ | 0.90 | $ | (0.32 | ) | ||||||
Diluted | $ | 0.43 | $ | (0.66 | ) | $ | 0.88 | $ | (0.32 | ) | ||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 17,251 | 17,108 | 17,206 | 17,080 | ||||||||||||
Diluted | 17,434 | 17,108 | 17,406 | 17,080 | ||||||||||||
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
| Six Months Ended | ||||||||
| July 3, 2011 | July 4, 2010 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | 15,402 | $ | (5,507 | ) | |||
Adjustments to reconcile net income to net cash provided | ||||||||
Depreciation | 7,496 | 6,343 | ||||||
Amortization | 2,196 | 1,942 | ||||||
Compensation expense of share-based plans | 1,960 | 1,814 | ||||||
Tax effect of share based compensation | (637 | ) | (90 | ) | ||||
(Gain) loss on disposal of property, plant and equipment | (39 | ) | 275 | |||||
(Payment) provision for Leslie bankruptcy settlement | (76,625 | ) | 24,974 | |||||
Changes in operating assets and liabilities, net of | ||||||||
Trade accounts receivable | (9,486 | ) | (19,247 | ) | ||||
Inventories | (37,714 | ) | (14,850 | ) | ||||
Prepaid expenses and other assets | (6,163 | ) | 3,228 | |||||
Accounts payable, accrued expenses and other liabilities | 36,208 | 15,511 | ||||||
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Net cash (used in) provided by operating activities | (67,402 | ) | 14,393 | |||||
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INVESTING ACTIVITIES | ||||||||
Additions to property, plant and equipment | (7,463 | ) | (8,187 | ) | ||||
Proceeds from the disposal of (purchases of) property, plant and equipment | 50 | (233 | ) | |||||
Purchases of investments | (2 | ) | 0 | |||||
Proceeds from the sale of investments | 0 | 21,427 | ||||||
Business acquisitions, net of cash acquired | (20,221 | ) | (5,210 | ) | ||||
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Net cash (used in) provided by investing activities | (27,636 | ) | 7,797 | |||||
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FINANCING ACTIVITIES | ||||||||
Proceeds from long-term borrowings | 201,087 | 32,458 | ||||||
Payments of long-term borrowings | (101,994 | ) | (34,645 | ) | ||||
Debt issuance costs | (2,001 | ) | 0 | |||||
Dividends paid | (1,325 | ) | (1,279 | ) | ||||
Proceeds from the exercise of stock options | 476 | 293 | ||||||
Tax effect of share based compensation | 637 | 90 | ||||||
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Net cash provided by (used in) financing activities | 96,880 | (3,083 | ) | |||||
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Effect of exchange rate changes on cash and cash equivalents | 708 | (4,600 | ) | |||||
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INCREASE IN CASH AND CASH EQUIVALENTS | 2,550 | 14,507 | ||||||
Cash and cash equivalents at beginning of year | 45,752 | 46,350 | ||||||
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CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 48,302 | $ | 60,857 | ||||
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CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
UNAUDITED
| July 3, 2011 | December 31, 2010 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash & cash equivalents | $ | 48,302 | $ | 45,752 | ||||
Short-term investments | 107 | 101 | ||||||
Trade accounts receivable, less allowance for doubtful accounts of $845 and $822, respectively | 151,567 | 138,860 | ||||||
Inventories | 210,103 | 167,797 | ||||||
Income taxes refundable | 0 | 1,625 | ||||||
Prepaid expenses and other current assets | 11,504 | 5,749 | ||||||
Deferred income tax asset | 20,585 | 20,111 | ||||||
Insurance receivables | 0 | 38 | ||||||
Assets held for sale | 542 | 542 | ||||||
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Total Current Assets | 442,710 | 380,575 | ||||||
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Property, Plant and Equipment, net | 106,586 | 95,768 | ||||||
Other Assets: | ||||||||
Goodwill | 79,930 | 63,175 | ||||||
Intangibles, net | 62,738 | 62,322 | ||||||
Deferred income tax asset | 12,589 | 11,829 | ||||||
Other assets | 4,644 | 2,526 | ||||||
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Total Assets | $ | 709,197 | $ | 616,195 | ||||
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LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 99,778 | $ | 80,577 | ||||
Accrued expenses and other current liabilities | 70,372 | 51,248 | ||||||
Accrued compensation and benefits | 21,144 | 22,305 | ||||||
Leslie asbestos and bankruptcy related liabilities | 1,642 | 79,831 | ||||||
Income taxes payable | 0 | 38 | ||||||
Notes payable and current portion of long-term debt | 2,154 | 851 | ||||||
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Total Current Liabilities | 195,090 | 234,850 | ||||||
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Long-Term Debt, net of current portion | 103,083 | 684 | ||||||
Deferred income taxes | 3,250 | 0 | ||||||
Other Non-Current Liabilities | 21,941 | 23,841 | ||||||
Shareholders' Equity: | ||||||||
Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares issued and outstanding | 0 | 0 | ||||||
Common stock, $.01 par value; 29,000,000 shares authorized; and 17,202,100 and 17,112,688 issued and outstanding, respectively | 173 | 171 | ||||||
Additional paid-in capital | 256,094 | 254,154 | ||||||
Retained earnings | 110,497 | 96,389 | ||||||
Accumulated other comprehensive income | 19,069 | 6,106 | ||||||
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Total Shareholders' Equity | 385,833 | 356,820 | ||||||
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Total Liabilities and Shareholders' Equity | $ | 709,197 | $ | 616,195 | ||||
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CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in millions)
UNAUDITED
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 3, 2011 | July 4, 2010 | July 3, 2011 | July 4, 2010 | |||||||||||||
ORDERS1 | ||||||||||||||||
Energy | $ | 103.2 | $ | 79.4 | $ | 217.0 | $ | 145.6 | ||||||||
Aerospace | 33.4 | 27.0 | 66.3 | 61.8 | ||||||||||||
Flow Technologies | 76.8 | 64.3 | 151.7 | 133.5 | ||||||||||||
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Total orders | $ | 213.4 | $ | 170.7 | $ | 435.0 | $ | 340.9 | ||||||||
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| July 3, 2011 | July 4, 2010 | |||||||||||||||
BACKLOG2 | ||||||||||||||||
Energy | $ | 225.7 | $ | 124.7 | ||||||||||||
Aerospace | 133.1 | $ | 117.2 | |||||||||||||
Flow Technologies | 83.2 | $ | 75.7 | |||||||||||||
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Total backlog | $ | 442.0 | $ | 317.6 | ||||||||||||
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| 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 all unshipped customer orders. |
CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share)
UNAUDITED
| 2010 | 2011 | |||||||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | YTD | 1ST QTR | 2ND QTR | YTD | |||||||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||||||||
Energy | $ | 57,722 | $ | 77,305 | $ | 80,613 | $ | 90,229 | $ | 305,869 | $ | 99,170 | $ | 81,994 | $ | 181,164 | ||||||||||||||||
Aerospace | 27,274 | 27,811 | 28,316 | 35,465 | 118,866 | 32,110 | 36,029 | 68,139 | ||||||||||||||||||||||||
Flow Technologies | 61,273 | 62,889 | 68,648 | 68,365 | 261,175 | 72,090 | 73,885 | 145,975 | ||||||||||||||||||||||||
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Total | 146,269 | 168,005 | 177,577 | 194,059 | 685,910 | 203,370 | 191,908 | 395,278 | ||||||||||||||||||||||||
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* ADJUSTED OPERATING MARGIN | ||||||||||||||||||||||||||||||||
Energy | 3.5 | % | 8.3 | % | 11.1 | % | 6.7 | % | 7.7 | % | 6.4 | % | 5.3 | % | 5.9 | % | ||||||||||||||||
Aerospace | 13.2 | % | 14.6 | % | 9.6 | % | 14.1 | % | 13.0 | % | 11.6 | % | 11.2 | % | 11.4 | % | ||||||||||||||||
Flow Technologies | 10.2 | % | 10.1 | % | 13.1 | % | 12.5 | % | 11.5 | % | 13.7 | % | 12.4 | % | 13.0 | % | ||||||||||||||||
Segment operating margin | 8.1 | % | 10.0 | % | 11.7 | % | 10.1 | % | 10.1 | % | 9.8 | % | 9.1 | % | 9.5 | % | ||||||||||||||||
Corporate expenses | -3.1 | % | -3.1 | % | -2.7 | % | -3.3 | % | -3.1 | % | -3.0 | % | -2.7 | % | -2.9 | % | ||||||||||||||||
* Adjusted operating margin | 5.0 | % | 6.9 | % | 8.9 | % | 6.7 | % | 7.0 | % | 6.8 | % | 6.5 | % | 6.6 | % | ||||||||||||||||
Leslie asbestos and bankruptcy charges (recoveries) | -0.4 | % | 17.2 | % | 1.3 | % | 1.1 | % | 4.8 | % | 0.5 | % | -0.1 | % | 0.2 | % | ||||||||||||||||
Total operating margin | 5.4 | % | -10.3 | % | 7.6 | % | 5.6 | % | 2.2 | % | 6.3 | % | 6.5 | % | 6.4 | % | ||||||||||||||||
* ADJUSTED OPERATING INCOME | ||||||||||||||||||||||||||||||||
Energy | 2,025 | 6,424 | 8,968 | 6,024 | 23,441 | 6,393 | 4,373 | 10,766 | ||||||||||||||||||||||||
Aerospace | 3,607 | 4,067 | 2,726 | 5,002 | 15,402 | 3,727 | 4,021 | 7,748 | ||||||||||||||||||||||||
Flow Technologies | 6,276 | 6,367 | 8,997 | 8,512 | 30,152 | 9,854 | 9,133 | 18,987 | ||||||||||||||||||||||||
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Segment operating income | 11,908 | 16,858 | 20,691 | 19,538 | 68,995 | 19,974 | 17,527 | 37,501 | ||||||||||||||||||||||||
Corporate expenses | (4,607 | ) | (5,274 | ) | (4,859 | ) | (6,494 | ) | (21,234 | ) | (6,201 | ) | (5,100 | ) | (11,301 | ) | ||||||||||||||||
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* Adjusted operating income | 7,301 | 11,584 | 15,832 | 13,044 | 47,761 | 13,773 | 12,427 | 26,200 | ||||||||||||||||||||||||
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Leslie asbestos and bankruptcy charges (recoveries) | (648 | ) | 28,908 | 2,343 | 2,173 | 32,776 | 1,001 | (124 | ) | 877 | ||||||||||||||||||||||
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Total operating income | 7,949 | (17,325 | ) | 13,490 | 10,871 | 14,986 | 12,772 | 12,550 | 25,322 | |||||||||||||||||||||||
INTEREST EXPENSE, NET | (554 | ) | (586 | ) | (734 | ) | (641 | ) | (2,515 | ) | (773 | ) | (1,232 | ) | (2,005 | ) | ||||||||||||||||
OTHER (EXPENSE) INCOME, NET | 51 | (258 | ) | 853 | (608 | ) | 38 | (915 | ) | (560 | ) | (1,476 | ) | |||||||||||||||||||
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PRETAX INCOME (LOSS) | 7,446 | (18,169 | ) | 13,609 | 9,622 | 12,508 | 11,084 | 10,758 | 21,841 | |||||||||||||||||||||||
(PROVISION) BENEFIT FOR INCOME TAXES | (1,713 | ) | 6,928 | (3,210 | ) | (1,890 | ) | 115 | (3,178 | ) | (3,261 | ) | (6,439 | ) | ||||||||||||||||||
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EFFECTIVE TAX RATE | 23.0 | % | 38.1 | % | 23.6 | % | 19.6 | % | -0.9 | % | 28.7 | % | 30.3 | % | 29.5 | % | ||||||||||||||||
NET INCOME (LOSS) | $ | 5,733 | $ | (11,241 | ) | $ | 10,399 | $ | 7,732 | $ | 12,624 | $ | 7,906 | $ | 7,497 | $ | 15,402 | |||||||||||||||
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Weighted Average Common Shares Outstanding (Diluted) | 17,193 | 17,108 | 17,258 | 17,378 | 17,297 | 17,378 | 17,434 | 17,406 | ||||||||||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.33 | $ | (0.66 | ) | $ | 0.60 | $ | 0.44 | $ | 0.73 | $ | 0.45 | $ | 0.43 | $ | 0.88 | |||||||||||||||
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EBIT | $ | 8,000 | $ | (17,583 | ) | $ | 14,343 | $ | 10,263 | $ | 15,024 | $ | 11,857 | $ | 11,990 | $ | 23,848 | |||||||||||||||
Depreciation | 3,228 | 3,115 | 3,166 | 3,566 | 13,075 | 3,575 | 3,921 | 7,496 | ||||||||||||||||||||||||
Amortization of intangibles | 979 | 964 | 1,122 | 1,236 | 4,301 | 1,418 | 778 | 2,196 | ||||||||||||||||||||||||
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EBITDA | $ | 12,207 | $ | (13,504 | ) | $ | 18,631 | $ | 15,065 | $ | 32,400 | $ | 16,850 | $ | 16,689 | $ | 33,540 | |||||||||||||||
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EBITDA AS A PERCENT OF SALES | 8.3 | % | -8.0 | % | 10.5 | % | 7.8 | % | 4.7 | % | 8.3 | % | 8.7 | % | 8.5 | % | ||||||||||||||||
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CAPITAL EXPENDITURES | $ | 3,606 | $ | 4,580 | $ | 3,213 | $ | 3,513 | $ | 14,913 | $ | 2,693 | $ | 4,770 | $ | 7,464 | ||||||||||||||||
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| * | Adjusted Operating Income & Margin excludes Leslie asbestos and bankruptcy charges. |
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED
GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands)
UNAUDITED
| 2010 | 2011 | |||||||||||||||||||||||||||||||
| 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] | $ | (6,380 | ) | $ | 12,587 | $ | (2,863 | ) | $ | 16,221 | $ | 19,564 | $ | 1,522 | $ | (76,387 | ) | $ | (74,866 | ) | ||||||||||||
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ADD: | ||||||||||||||||||||||||||||||||
Capital Expenditures | 3,606 | 4,580 | 3,213 | 3,513 | 14,913 | 2,693 | 4,770 | 7,464 | ||||||||||||||||||||||||
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NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | (2,774 | ) | $ | 17,167 | $ | 350 | $ | 19,734 | $ | 34,477 | $ | 4,215 | $ | (71,617 | ) | $ | (67,402 | ) | |||||||||||||
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NET DEBT (CASH) [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS] | $ | (52,713 | ) | $ | (55,976 | ) | $ | (26,225 | ) | $ | (44,318 | ) | $ | (44,318 | ) | $ | (22,562 | ) | $ | 56,828 | $ | 56,828 | ||||||||||
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ADD: | ||||||||||||||||||||||||||||||||
Cash & cash equivalents | 37,812 | 60,857 | 68,526 | 45,752 | 45,752 | 53,491 | 48,302 | 48,302 | ||||||||||||||||||||||||
Investments | 22,412 | 94 | 97 | 101 | 101 | 107 | 107 | 107 | ||||||||||||||||||||||||
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TOTAL DEBT | $ | 7,511 | $ | 4,975 | $ | 42,398 | $ | 1,535 | $ | 1,535 | $ | 31,036 | $ | 105,237 | $ | 105,237 | ||||||||||||||||
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DEBT AS % OF EQUITY | 2 | % | 2 | % | 12 | % | 0 | % | 0 | % | 8 | % | 27 | % | 27 | % | ||||||||||||||||
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TOTAL DEBT | 7,511 | 4,975 | 42,398 | 1,535 | 1,535 | 31,036 | 105,237 | 105,237 | ||||||||||||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 349,244 | 324,128 | 351,719 | 356,820 | 356,820 | 374,706 | 385,833 | 385,833 | ||||||||||||||||||||||||
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EBIT [NET INCOME LESS INCOME TAXES LESS INTEREST EXPENSE, NET] | $ | 8,000 | $ | (17,583 | ) | $ | 14,343 | $ | 10,263 | $ | 15,023 | $ | 11,857 | $ | 11,990 | $ | 23,847 | |||||||||||||||
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LESS: | ||||||||||||||||||||||||||||||||
Interest expense, net | (554 | ) | (586 | ) | (734 | ) | (641 | ) | (2,515 | ) | (773 | ) | (1,232 | ) | (2,005 | ) | ||||||||||||||||
(Provision) benefit for income taxes | (1,713 | ) | 6,928 | (3,210 | ) | (1,890 | ) | 115 | (3,178 | ) | (3,261 | ) | (6,439 | ) | ||||||||||||||||||
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NET INCOME | $ | 5,733 | $ | (11,241 | ) | $ | 10,399 | $ | 7,732 | $ | 12,624 | $ | 7,906 | $ | 7,497 | $ | 15,404 | |||||||||||||||
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EBITDA [NET INCOME LESS INTEREST EXPENSE, NET, LESS DEPRECIATION LESS AMORTIZATION LESS INCOME TAXES] | $ | 12,207 | $ | (13,504 | ) | $ | 18,631 | $ | 15,065 | $ | 32,399 | $ | 16,850 | $ | 16,689 | $ | 33,539 | |||||||||||||||
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LESS: | ||||||||||||||||||||||||||||||||
Interest expense, net | (554 | ) | (586 | ) | (734 | ) | (641 | ) | (2,515 | ) | (773 | ) | (1,232 | ) | (2,005 | ) | ||||||||||||||||
Depreciation | (3,228 | ) | (3,115 | ) | (3,166 | ) | (3,566 | ) | (13,075 | ) | (3,575 | ) | (3,921 | ) | (7,496 | ) | ||||||||||||||||
Amortization | (979 | ) | (964 | ) | (1,122 | ) | (1,236 | ) | (4,301 | ) | (1,418 | ) | (778 | ) | (2,196 | ) | ||||||||||||||||
(Provision) benefit for income taxes | (1,713 | ) | 6,928 | (3,210 | ) | (1,890 | ) | 115 | (3,178 | ) | (3,261 | ) | (6,439 | ) | ||||||||||||||||||
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NET INCOME | $ | 5,733 | $ | (11,241 | ) | $ | 10,399 | $ | 7,732 | $ | 12,624 | $ | 7,906 | $ | 7,497 | $ | 15,404 | |||||||||||||||
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ADJUSTED INCOME [NET INCOME EXCLUDING LESLIE ASBESTOS AND BANKRUPTCY CHARGES, NET OF TAX] | $ | 5,312 | $ | 7,549 | $ | 11,922 | $ | 9,144 | $ | 33,928 | $ | 8,557 | $ | 7,416 | $ | 15,974 | ||||||||||||||||
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LESS: | ||||||||||||||||||||||||||||||||
Leslie asbestos and bankruptcy charges (recoveries), net of tax | (421 | ) | 18,790 | 1,523 | 1,412 | 21,304 | 651 | (81 | ) | 570 | ||||||||||||||||||||||
NET INCOME | $ | 5,733 | $ | (11,241 | ) | $ | 10,399 | $ | 7,732 | $ | 12,624 | $ | 7,906 | $ | 7,497 | $ | 15,404 | |||||||||||||||
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ADJUSTED WEIGHTED AVERAGE SHARES | N/A | 17,109 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
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Adjustment for anti-dilutive conversion of shares | 0 | 153 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
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Weighted average common shares outstanding (diluted) | 17,193 | 17,262 | 17,258 | 17,378 | 17,297 | 17,378 | 17,434 | 17,406 | ||||||||||||||||||||||||
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ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING LESLIE ASBESTOS AND BANKRUPTCY CHARGES, NET OF TAX] | $ | 0.31 | $ | 0.44 | $ | 0.69 | $ | 0.53 | $ | 1.97 | $ | 0.49 | $ | 0.43 | $ | 0.92 | ||||||||||||||||
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LESS: | ||||||||||||||||||||||||||||||||
Leslie asbestos and bankruptcy charges (recoveries), net of tax impact on EPS | (0.02 | ) | 1.10 | 0.09 | 0.08 | 1.24 | 0.04 | (0.00 | ) | 0.04 | ||||||||||||||||||||||
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EARNINGS PER COMMON SHARE (Diluted) | $ | 0.33 | $ | (0.66 | ) | $ | 0.60 | $ | 0.44 | $ | 0.73 | $ | 0.45 | $ | 0.43 | $ | 0.88 | |||||||||||||||
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CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY
USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
UNAUDITED
| 3rd QTR 2011 | ||||||||
| Low | High | |||||||
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING SPECIAL, IMPAIRMENT, AND LESLIE ASBESTOS AND BANKRUPTCY CHARGES, NET OF TAX] | $ | 0.47 | $ | 0.57 | ||||
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LESS: | ||||||||
Expected special charges (recoveries), net of tax impact on EPS | $ | — | $ | — | ||||
Expected impairment charges, net of tax impact on EPS | $ | — | $ | — | ||||
Expected Leslie asbestos and bankruptcy charges, net of tax impact on EPS | $ | — | $ | — | ||||
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EXPECTED EARNINGS PER COMMON SHARE (Diluted) | $ | 0.47 | $ | 0.57 | ||||
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