Exhibit 99.1
PRESS RELEASE
CIRCOR International Reports Fourth-Quarter 2011 Financial Results
Fourth-quarter Revenues Increase 12% Year-over-year with All Segments Up
Fourth Quarter Earnings Per Share Grows by 34%; Adjusted EPS Grows by 11%
Burlington, MA – February 23, 2012 –CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for theenergy,aerospace andindustrial markets, today announced financial results for the fourth quarter and year ended December 31, 2011.
“We delivered another strong quarter of revenue growth and profitability,” said Chairman and Chief Executive Officer Bill Higgins. “Consistent with our guidance, revenues increased 12% year-over-year with all three segments contributing, and adjusted EPS was up 11% excluding the impact of Leslie asbestos and bankruptcy.”
Higgins continued, “As we look back at 2011, we accomplished key strategic plan initiatives:
• | Permanently resolved the Leslie asbestos liability |
• | Won large programs in Aerospace with potential value of more than $200 million |
• | Expanded margins in the Flow Technology segment for the third consecutive year |
• | Acquired a valve business in Brazil to service Petrobras and the energy markets |
• | Began construction of a manufacturing plant in India to serve the power generation market |
These milestones are key to our strategy, which includes growing in high-growth markets and expanding our product and service offerings into higher-margin, critical applications.”
Consolidated Results
Revenues for the fourth quarter of 2011 were $217.1 million, a 12% increase from $194.1 million in the fourth quarter of 2010. CIRCOR reported net income for the fourth quarter of 2011 of $10.3 million, or $0.59 per diluted share, compared with net income of $7.7 million, or $0.44 per diluted share, for the fourth quarter of 2010. Excluding Leslie asbestos and bankruptcy charges, net of tax, adjusted earnings per diluted share for the fourth quarter of 2011 and 2010 were $0.59 and $0.53, respectively.
Consolidated adjusted operating earnings, which exclude Leslie asbestos and bankruptcy charges, rose 15% to $15.0 million for the fourth quarter of 2011 from $13.0 million for the fourth quarter of 2010.
The Company received orders totaling $186.2 million during the fourth quarter of 2011, a decrease of 12% compared with the fourth quarter of 2010, with a decline in Energy, partially offset by growth in Aerospace and Flow. Backlog as of December 31, 2011 was $397.4 million, down 2% from backlog of $404.3 million at December 31, 2010.
During the fourth quarter of 2011, the Company generated $15.2 million of free cash flow (defined as net cash from operating activities less capital expenditures) compared with $16.2 million in the fourth quarter of 2010.
Energy
Energy segment revenues of $110.2 million for the quarter ended December 31, 2011 represent a 22% increase from $90.2 million for the quarter ended December 31, 2010. The increase in revenues year over year was primarily due to organic growth of 19% as a result of strength in the North American short-cycle business and pipeline solutions. The remainder of the revenue increase includes 4% growth from the February 2011 Brazilian energy acquisition, which was partially offset by a negative foreign currency impact of 1%.
Incoming orders for the fourth quarter of 2011 were $86.2 million, a decrease of 29% year over year, due to particularly strong international projects business recorded in the fourth quarter of 2010. Ending backlog totaled $169.3 million, a decrease of 6% year over year.
For the fourth quarter of 2011, the Energy segment adjusted operating margin of 8.4% was up from 6.7% in the fourth quarter of 2010, primarily due to improvements in the short-cycle and pipeline businesses.
Aerospace
Aerospace segment revenues increased by 2% to $36.0 million for the fourth quarter of 2011 from $35.5 million in the fourth quarter of 2010. The increase in Aerospace segment revenues is attributable to 2% organic growth.
Incoming orders for the fourth quarter of 2011 were $35.9 million, an increase of 16% year over year. Orders increased due to a ramp up in commercial aerospace production and an increase in landing gear orders. Ending backlog totaled $158.3 million, an increase of 8% year over year.
The Aerospace segment’s adjusted operating margin was 8.6% for the fourth quarter of 2011, down from 14.1% for the fourth quarter of 2010. Adjusted operating margins decreased primarily due to lower margins in landing gear operations and increased investments for large future programs, partially offset by favorable volume and associated leverage.
Flow Technologies
Flow Technologies segment revenues increased 4% to $70.9 million for the fourth quarter of 2011 from $68.4 million in the fourth quarter of 2010. Fourth-quarter 2011 Flow Technology segment revenues reflected organic growth of 4%.
Incoming orders for this segment were $64.1 million for the fourth quarter of 2011, an increase of 5% year over year. If you exclude the unfavorable impact of LED equipment, which were particularly strong in 2010, Flow orders increased 11%. Ending backlog totaled $69.8 million, a decrease of 10% year over year which was also effected by LED equipment as well as delivery of several large maritime projects.
This segment’s adjusted operating margin for the fourth quarter of 2011 improved to 12.9%, compared with 12.5% in the fourth quarter of 2010, due to volume, pricing and productivity partially offset by power growth investments. For the fourth quarter of 2010, adjusted operating margin excludes the impact of Leslie asbestos and bankruptcy charges.
Financial Outlook
CIRCOR currently expects revenues for the first quarter of 2012 in the range of $198 million to $205 million. Earnings are expected to be in the range of $0.35 to $0.45 per diluted share. As in 2011, CIRCOR expects the second half of 2012 to show an improvement over the first half of the year. 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, February 23, 2012, 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 fourth-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 athttp://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 | Twelve Months Ended | |||||||||||||||
December 31, 2011 | December 31, 2010 | December 31, 2011 | December 31, 2010 | |||||||||||||
Net revenues | $ | 217,110 | $ | 194,059 | $ | 822,349 | $ | 685,910 | ||||||||
Cost of revenues | 157,736 | 140,532 | 596,954 | 488,641 | ||||||||||||
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GROSS PROFIT | 59,374 | 53,527 | 225,395 | 197,269 | ||||||||||||
Selling, general and administrative expenses | 44,338 | 40,483 | 168,421 | 149,508 | ||||||||||||
Leslie asbestos and bankruptcy charges | — | 2,173 | 676 | 32,775 | ||||||||||||
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OPERATING INCOME | 15,036 | 10,871 | 56,298 | 14,986 | ||||||||||||
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Other expense (income): | ||||||||||||||||
Interest income | (99 | ) | (82 | ) | (265 | ) | (244 | ) | ||||||||
Interest expense | 1,138 | 723 | 4,195 | 2,760 | ||||||||||||
Other expense (income), net | 342 | 608 | 2,172 | (39 | ) | |||||||||||
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Total other expense | 1,381 | 1,249 | 6,102 | 2,477 | ||||||||||||
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INCOME BEFORE INCOME TAXES | 13,655 | 9,622 | 50,196 | 12,509 | ||||||||||||
Provision (Benefit) for income taxes | 3,370 | 1,890 | 13,562 | (115 | ) | |||||||||||
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NET INCOME | $ | 10,285 | $ | 7,732 | $ | 36,634 | $ | 12,624 | ||||||||
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Earnings per common share: | ||||||||||||||||
Basic | $ | 0.60 | $ | 0.45 | $ | 2.12 | $ | 0.74 | ||||||||
Diluted | $ | 0.59 | $ | 0.44 | $ | 2.10 | $ | 0.73 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 17,280 | 17,165 | 17,240 | 17,137 | ||||||||||||
Diluted | 17,435 | 17,378 | 17,417 | 17,297 |
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
Twelve Months Ended | ||||||||
December 31, 2011 | December 31, 2010 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 36,634 | $ | 12,624 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 15,085 | 13,075 | ||||||
Amortization | 4,351 | 4,301 | ||||||
Compensation expense of share-based plans | 3,807 | 3,430 | ||||||
Tax effect of share based compensation | (673 | ) | (189 | ) | ||||
Deferred income taxes | 307 | (9,869 | ) | |||||
(Gain) loss on disposal of property, plant and equipment | (69 | ) | 315 | |||||
(Payment) provision for Leslie bankruptcy settlement | (76,625 | ) | 24,974 | |||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | ||||||||
Trade accounts receivable | (17,862 | ) | (24,768 | ) | ||||
Inventories | (38,588 | ) | (21,997 | ) | ||||
Prepaid expenses and other assets | (22,918 | ) | 1,721 | |||||
Accounts payable, accrued expenses and other liabilities | 47,718 | 33,227 | ||||||
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Net cash (used in) provided by operating activities | (48,833 | ) | 36,844 | |||||
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INVESTING ACTIVITIES | ||||||||
Additions to property, plant and equipment | (17,901 | ) | (14,913 | ) | ||||
Proceeds from the disposal of property, plant and equipment | 117 | 106 | ||||||
Proceeds from the sale of investments | 0 | 21,427 | ||||||
Business acquisitions, net of cash acquired | (20,221 | ) | (34,401 | ) | ||||
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Net cash used in investing activities | (38,005 | ) | (27,781 | ) | ||||
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FINANCING ACTIVITIES | ||||||||
Proceeds from borrowings | 279,346 | 88,680 | ||||||
Payments of borrowings | (178,905 | ) | (95,370 | ) | ||||
Debt issuance costs | (2,001 | ) | 0 | |||||
Dividends paid | (2,650 | ) | (2,643 | ) | ||||
Proceeds from the exercise of stock options | 589 | 529 | ||||||
Tax effect of share based compensation | 673 | 189 | ||||||
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Net cash provided by (used in) financing activities | 97,052 | (8,615 | ) | |||||
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Effect of exchange rate changes on cash and cash equivalents | (1,111 | ) | (1,046 | ) | ||||
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INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 9,103 | (598 | ) | |||||
Cash and cash equivalents at beginning of year | 45,752 | 46,350 | ||||||
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CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 54,855 | $ | 45,752 | ||||
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CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
UNAUDITED
December 31, 2011 | December 31, 2010 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash & cash equivalents | $ | 54,855 | $ | 45,752 | ||||
Short-term investments | 99 | 101 | ||||||
Trade accounts receivable, less allowance for doubtful accounts of $1,127 and $822, respectively | 156,075 | 138,860 | ||||||
Inventories | 203,777 | 167,797 | ||||||
Income taxes refundable | 0 | 1,625 | ||||||
Prepaid expenses and other current assets | 12,376 | 5,749 | ||||||
Deferred income tax asset | 16,320 | 20,111 | ||||||
Insurance receivables | 0 | 38 | ||||||
Assets held for sale | 542 | 542 | ||||||
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Total Current Assets | 444,044 | 380,575 | ||||||
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Property, Plant and Equipment, net | 104,434 | 95,768 | ||||||
Other Assets: | ||||||||
Goodwill | 77,829 | 63,175 | ||||||
Intangibles, net | 58,442 | 62,322 | ||||||
Deferred income tax asset | 27,949 | 11,829 | ||||||
Other assets | 9,825 | 2,526 | ||||||
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Total Assets | $ | 722,523 | $ | 616,195 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 92,493 | $ | 80,577 | ||||
Accrued expenses and other current liabilities | 63,386 | 51,248 | ||||||
Accrued compensation and benefits | 24,328 | 22,305 | ||||||
Leslie asbestos and bankruptcy related liabilities | 1,000 | 79,831 | ||||||
Income taxes payable | 5,553 | 38 | ||||||
Notes payable and current portion of long-term debt | 8,796 | 851 | ||||||
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Total Current Liabilities | 195,556 | 234,850 | ||||||
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Long-Term Debt, net of current portion | 96,327 | 684 | ||||||
Deferred income taxes | 11,284 | 0 | ||||||
Other Non-Current Liabilities | 35,271 | 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 17,268,212 and 17,112,688 issued and outstanding, respectively | 173 | 171 | ||||||
Additional paid-in capital | 258,209 | 254,154 | ||||||
Retained earnings | 130,373 | 96,389 | ||||||
Accumulated other comprehensive income (loss) | (4,670 | ) | 6,106 | |||||
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Total Shareholders’ Equity | 384,085 | 356,820 | ||||||
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Total Liabilities and Shareholders’ Equity | $ | 722,523 | $ | 616,195 | ||||
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CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in millions)
UNAUDITED
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, 2011 | December 31, 2010 | December 31, 2011 | December 31, 2010 | |||||||||||||
ORDERS1 | ||||||||||||||||
Energy | $ | 86.2 | $ | 120.8 | $ | 396.8 | $ | 364.8 | ||||||||
Aerospace | 35.9 | 30.8 | 165.0 | 123.9 | ||||||||||||
Flow Technologies | 64.1 | 60.8 | 286.7 | 271.6 | ||||||||||||
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Total orders | $ | 186.2 | $ | 212.4 | $ | 848.5 | $ | 760.3 | ||||||||
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December 31, 2011 | December 31, 2010 | |||||||||||||||
BACKLOG2 | ||||||||||||||||
Energy | $ | 169.3 | $ | 179.9 | ||||||||||||
Aerospace | 158.3 | 147.2 | ||||||||||||||
Flow Technologies | 69.8 | 77.2 | ||||||||||||||
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Total backlog | $ | 397.4 | $ | 404.3 | ||||||||||||
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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 | 3RD QTR | 4TH QTR | YTD | |||||||||||||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||||||||||||||||
Energy | $ | 57,722 | $ | 77,305 | $ | 80,613 | $ | 90,229 | $ | 305,869 | $ | 99,170 | $ | 81,994 | $ | 103,300 | $ | 110,228 | $ | 394,692 | ||||||||||||||||||||
Aerospace | 27,274 | 27,811 | 28,316 | 35,465 | 118,866 | 32,110 | 36,029 | 32,681 | 36,017 | 136,837 | ||||||||||||||||||||||||||||||
Flow Technologies | 61,273 | 62,889 | 68,648 | 68,365 | 261,175 | 72,090 | 73,885 | 73,980 | 70,865 | 290,820 | ||||||||||||||||||||||||||||||
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Total | 146,269 | 168,005 | 177,577 | 194,059 | 685,910 | 203,370 | 191,908 | 209,961 | 217,110 | 822,349 | ||||||||||||||||||||||||||||||
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* ADJUSTED OPERATING MARGIN | ||||||||||||||||||||||||||||||||||||||||
Energy | 3.5 | % | 8.3 | % | 11.1 | % | 6.7 | % | 7.7 | % | 6.4 | % | 5.3 | % | 7.2 | % | 8.4 | % | 7.0 | % | ||||||||||||||||||||
Aerospace | 13.2 | % | 14.6 | % | 9.6 | % | 14.1 | % | 13.0 | % | 11.6 | % | 11.2 | % | 5.6 | % | 8.6 | % | 9.3 | % | ||||||||||||||||||||
Flow Technologies | 10.2 | % | 10.1 | % | 13.1 | % | 12.5 | % | 11.5 | % | 13.7 | % | 12.4 | % | 13.6 | % | 12.9 | % | 13.1 | % | ||||||||||||||||||||
Segment operating margin | 8.1 | % | 10.0 | % | 11.7 | % | 10.1 | % | 10.1 | % | 9.8 | % | 9.1 | % | 9.2 | % | 9.9 | % | 9.5 | % | ||||||||||||||||||||
Corporate expenses | -3.1 | % | -3.1 | % | -2.7 | % | -3.3 | % | -3.1 | % | -3.0 | % | -2.7 | % | -1.7 | % | -3.0 | % | -2.6 | % | ||||||||||||||||||||
* Adjusted operating margin | 5.0 | % | 6.9 | % | 8.9 | % | 6.7 | % | 7.0 | % | 6.8 | % | 6.5 | % | 7.5 | % | 6.9 | % | 6.9 | % | ||||||||||||||||||||
Leslie asbestos and bankruptcy charges (recoveries) | -0.4 | % | 17.2 | % | 1.3 | % | 1.1 | % | 4.8 | % | 0.5 | % | -0.1 | % | -0.1 | % | 0.0 | % | 0.1 | % | ||||||||||||||||||||
Total operating margin | 5.4 | % | -10.3 | % | 7.6 | % | 5.6 | % | 2.2 | % | 6.3 | % | 6.5 | % | 7.6 | % | 6.9 | % | 6.8 | % | ||||||||||||||||||||
* ADJUSTED OPERATING INCOME | ||||||||||||||||||||||||||||||||||||||||
Energy | 2,025 | 6,424 | 8,968 | 6,024 | 23,441 | 6,393 | 4,373 | 7,441 | 9,225 | 27,432 | ||||||||||||||||||||||||||||||
Aerospace | 3,607 | 4,067 | 2,726 | 5,002 | 15,402 | 3,727 | 4,021 | 1,846 | 3,081 | 12,675 | ||||||||||||||||||||||||||||||
Flow Technologies | 6,276 | 6,367 | 8,997 | 8,512 | 30,152 | 9,854 | 9,133 | 10,037 | 9,171 | 38,195 | ||||||||||||||||||||||||||||||
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Segment operating income | 11,908 | 16,858 | 20,691 | 19,538 | 68,995 | 19,974 | 17,527 | 19,324 | 21,477 | 78,302 | ||||||||||||||||||||||||||||||
Corporate expenses | (4,607 | ) | (5,274 | ) | (4,859 | ) | (6,494 | ) | (21,234 | ) | (6,201 | ) | (5,100 | ) | �� | (3,585 | ) | (6,441 | ) | (21,327 | ) | |||||||||||||||||||
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* Adjusted operating income | 7,301 | 11,584 | 15,832 | 13,044 | 47,761 | 13,773 | 12,427 | 15,739 | 15,036 | 56,975 | ||||||||||||||||||||||||||||||
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Leslie asbestos and bankruptcy charges (recoveries) | (648 | ) | 28,908 | 2,343 | 2,173 | 32,776 | 1,001 | (124 | ) | (201 | ) | — | 676 | |||||||||||||||||||||||||||
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Total operating income | 7,949 | (17,325 | ) | 13,490 | 10,871 | 14,986 | 12,772 | 12,550 | 15,940 | 15,036 | 56,298 | |||||||||||||||||||||||||||||
INTEREST EXPENSE, NET | (554 | ) | (586 | ) | (734 | ) | (641 | ) | (2,515 | ) | (773 | ) | (1,232 | ) | (887 | ) | (1,039 | ) | (3,930 | ) | ||||||||||||||||||||
OTHER (EXPENSE) INCOME, NET | 51 | (258 | ) | 853 | (608 | ) | 38 | (915 | ) | (560 | ) | (354 | ) | (342 | ) | (2,171 | ) | |||||||||||||||||||||||
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PRETAX INCOME (LOSS) | 7,446 | (18,169 | ) | 13,609 | 9,622 | 12,508 | 11,084 | 10,758 | 14,699 | 13,655 | 50,196 | |||||||||||||||||||||||||||||
(PROVISION) BENEFIT FOR INCOME TAXES | (1,713 | ) | 6,928 | (3,210 | ) | (1,890 | ) | 115 | (3,178 | ) | (3,261 | ) | (3,752 | ) | (3,370 | ) | (13,562 | ) | ||||||||||||||||||||||
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EFFECTIVE TAX RATE | 23.0 | % | 38.1 | % | 23.6 | % | 19.6 | % | -0.9 | % | 28.7 | % | 30.3 | % | 25.5 | % | 24.7 | % | 27.0 | % | ||||||||||||||||||||
NET INCOME (LOSS) | $ | 5,733 | $ | (11,241 | ) | $ | 10,399 | $ | 7,732 | $ | 12,624 | $ | 7,906 | $ | 7,497 | $ | 10,947 | �� | $ | 10,285 | $ | 36,634 | ||||||||||||||||||
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Weighted Average Common Shares Outstanding (Diluted) | 17,193 | 17,108 | 17,258 | 17,378 | 17,297 | 17,378 | 17,434 | 17,423 | 17,435 | 17,417 | ||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.33 | $ | (0.66 | ) | $ | 0.60 | $ | 0.44 | $ | 0.73 | $ | 0.45 | $ | 0.43 | $ | 0.63 | $ | 0.59 | $ | 2.10 | |||||||||||||||||||
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EBIT | $ | 8,000 | $ | (17,583 | ) | $ | 14,343 | $ | 10,263 | $ | 15,024 | $ | 11,857 | $ | 11,990 | $ | 15,586 | $ | 14,694 | $ | 54,127 | |||||||||||||||||||
Depreciation | 3,228 | 3,115 | 3,166 | 3,566 | 13,075 | 3,575 | 3,921 | 3,770 | 3,820 | 15,085 | ||||||||||||||||||||||||||||||
Amortization of intangibles | 979 | 964 | 1,122 | 1,236 | 4,301 | 1,418 | 778 | 1,097 | 1,058 | 4,351 | ||||||||||||||||||||||||||||||
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EBITDA | $ | 12,207 | $ | (13,504 | ) | $ | 18,631 | $ | 15,065 | $ | 32,400 | $ | 16,850 | $ | 16,689 | $ | 20,453 | $ | 19,572 | $ | 73,563 | |||||||||||||||||||
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EBITDA AS A PERCENT OF SALES | 8.3 | % | -8.0 | % | 10.5 | % | 7.8 | % | 4.7 | % | 8.3 | % | 8.7 | % | 9.7 | % | 9.0 | % | 8.9 | % | ||||||||||||||||||||
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CAPITAL EXPENDITURES | $ | 3,606 | $ | 4,580 | $ | 3,213 | $ | 3,513 | $ | 14,913 | $ | 2,693 | $ | 4,770 | $ | 3,792 | $ | 6,647 | $ | 17,901 | ||||||||||||||||||||
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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 | 3RD QTR | 4TH QTR | YTD | |||||||||||||||||||||||||||||||
FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES] | $ | (6,380 | ) | $ | 12,587 | $ | (496 | ) | $ | 16,221 | $ | 21,931 | $ | 525 | $ | (77,244 | ) | $ | (5,214 | ) | $ | 15,199 | $ | (66,734 | ) | |||||||||||||||
ADD: | ||||||||||||||||||||||||||||||||||||||||
Capital Expenditures | 3,606 | 4,580 | 3,213 | 3,513 | 14,913 | 2,693 | 4,770 | 3,792 | 6,647 | 17,902 | ||||||||||||||||||||||||||||||
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NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | (2,774 | ) | $ | 17,167 | $ | 2,717 | $ | 19,734 | $ | 36,844 | $ | 3,218 | $ | (72,474 | ) | $ | (1,422 | ) | $ | 21,846 | $ | (48,832 | ) | ||||||||||||||||
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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 | ) | $ | (22,554 | ) | $ | 56,828 | $ | 64,145 | $ | 50,169 | $ | 50,169 | ||||||||||||||
ADD: | ||||||||||||||||||||||||||||||||||||||||
Cash & cash equivalents | 37,812 | 60,857 | 68,526 | 45,752 | 45,752 | 53,491 | 48,302 | 39,254 | 54,855 | 54,855 | ||||||||||||||||||||||||||||||
Investments | 22,412 | 94 | 97 | 101 | 101 | 99 | 107 | 98 | 99 | 99 | ||||||||||||||||||||||||||||||
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TOTAL DEBT | $ | 7,511 | $ | 4,975 | $ | 42,398 | $ | 1,535 | $ | 1,535 | $ | 31,036 | $ | 105,237 | $ | 103,497 | $ | 105,123 | $ | 105,123 | ||||||||||||||||||||
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DEBT AS % OF EQUITY | 2 | % | 2 | % | 12 | % | 0 | % | 0 | % | 8 | % | 27 | % | 27 | % | 27 | % | 27 | % | ||||||||||||||||||||
TOTAL DEBT | 7,511 | 4,975 | 42,398 | 1,535 | 1,535 | 31,036 | 105,237 | 103,497 | 105,123 | 105,123 | ||||||||||||||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 349,244 | 324,128 | 351,719 | 356,820 | 356,820 | 374,706 | 385,833 | 384,296 | 384,085 | 384,085 | ||||||||||||||||||||||||||||||
EBIT [NET INCOME LESS INCOME TAXES LESS INTEREST EXPENSE, NET] | $ | 8,000 | $ | (17,583 | ) | $ | 14,343 | $ | 10,263 | $ | 15,023 | $ | 11,857 | $ | 11,990 | $ | 15,586 | $ | 14,694 | $ | 54,127 | |||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | (554 | ) | (586 | ) | (734 | ) | (641 | ) | (2,515 | ) | (773 | ) | (1,232 | ) | (887 | ) | (1,039 | ) | (3,930 | ) | ||||||||||||||||||||
(Provision) benefit for income taxes | (1,713 | ) | 6,928 | (3,210 | ) | (1,890 | ) | 115 | (3,178 | ) | (3,261 | ) | (3,752 | ) | �� | (3,370 | ) | (13,561 | ) | |||||||||||||||||||||
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NET INCOME (LOSS) | $ | 5,733 | $ | (11,241 | ) | $ | 10,399 | $ | 7,732 | $ | 12,624 | $ | 7,906 | $ | 7,497 | $ | 10,947 | $ | 10,285 | $ | 36,635 | |||||||||||||||||||
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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 | $ | 20,453 | $ | 19,572 | $ | 73,563 | |||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | (554 | ) | (586 | ) | (734 | ) | (641 | ) | (2,515 | ) | (773 | ) | (1,232 | ) | (887 | ) | (1,039 | ) | (3,931 | ) | ||||||||||||||||||||
Depreciation | (3,228 | ) | (3,115 | ) | (3,166 | ) | (3,566 | ) | (13,075 | ) | (3,575 | ) | (3,921 | ) | (3,770 | ) | (3,820 | ) | (15,085 | ) | ||||||||||||||||||||
Amortization | (979 | ) | (964 | ) | (1,122 | ) | (1,236 | ) | (4,301 | ) | (1,418 | ) | (778 | ) | (1,097 | ) | (1,058 | ) | (4,351 | ) | ||||||||||||||||||||
(Provision) benefit for income taxes | (1,713 | ) | 6,928 | (3,210 | ) | (1,890 | ) | 115 | (3,178 | ) | (3,261 | ) | (3,752 | ) | (3,370 | ) | (13,561 | ) | ||||||||||||||||||||||
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NET INCOME (LOSS) | $ | 5,733 | $ | (11,241 | ) | $ | 10,399 | $ | 7,732 | $ | 12,624 | $ | 7,906 | $ | 7,497 | $ | 10,947 | $ | 10,285 | $ | 36,635 | |||||||||||||||||||
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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 | $ | 10,816 | $ | 10,285 | $ | 37,074 | ||||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||||||||||||
Leslie asbestos and bankruptcy charges (recoveries), net of tax | (421 | ) | 18,790 | 1,523 | 1,412 | 21,304 | 651 | (81 | ) | (131 | ) | — | 439 | |||||||||||||||||||||||||||
NET INCOME (LOSS) | $ | 5,733 | $ | (11,241 | ) | $ | 10,399 | $ | 7,732 | $ | 12,624 | $ | 7,906 | $ | 7,497 | $ | 10,947 | $ | 10,285 | $ | 36,635 | |||||||||||||||||||
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ADJUSTED WEIGHTED AVERAGE SHARES | N/A | 17,109 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Adjustment for anti-dilutive conversion of shares | 0 | 153 | 0 | 0 | 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 | 17,423 | 17,435 | 17,417 | ||||||||||||||||||||||||||||||
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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 | $ | 0.62 | $ | 0.59 | $ | 2.13 | ||||||||||||||||||||
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 | ) | (0.01 | ) | — | 0.03 | |||||||||||||||||||||||||||
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EARNINGS (LOSS) PER COMMON SHARE (Diluted) | $ | 0.33 | $ | (0.66 | ) | $ | 0.60 | $ | 0.44 | $ | 0.73 | $ | 0.45 | $ | 0.43 | $ | 0.63 | $ | 0.59 | $ | 2.10 | |||||||||||||||||||
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