Exhibit 99.2
CRANE CO.
Income Statement Data
(in thousands, except per share data)
Three Months Ended March 31, | ||||||||
2005 | 2004 | |||||||
Net Sales: | ||||||||
Aerospace & Electronics | $ | 133,581 | $ | 119,277 | ||||
Engineered Materials | 80,798 | 69,010 | ||||||
Merchandising Systems | 43,753 | 39,450 | ||||||
Fluid Handling | 228,552 | 203,888 | ||||||
Controls | 20,516 | 16,753 | ||||||
Intersegment Elimination | (139 | ) | (72 | ) | ||||
Total Net Sales | $ | 507,061 | $ | 448,306 | ||||
Operating Profit: | ||||||||
Aerospace & Electronics | $ | 15,950 | $ | 20,222 | ||||
Engineered Materials | 16,858 | 15,531 | ||||||
Merchandising Systems | 3,781 | 474 | ||||||
Fluid Handling | 12,424 | 8,727 | ||||||
Controls | 1,759 | 889 | ||||||
Corporate | (8,922 | ) | (7,165 | ) | ||||
Total Operating Profit | 41,850 | 38,678 | ||||||
Interest Income | 341 | 222 | ||||||
Interest Expense | (5,720 | ) | (6,541 | ) | ||||
Miscellaneous - Net | 282 | (218 | ) | |||||
Income Before Income Taxes | 36,753 | 32,141 | ||||||
Provision for Income Taxes | 11,755 | 9,964 | ||||||
Net Income | $ | 24,998 | $ | 22,177 | ||||
Per Diluted Share Data: | ||||||||
Net Income | $ | 0.42 | $ | 0.37 | ||||
Average Diluted Shares Outstanding | 60,070 | 60,418 | ||||||
Average Basic Shares Outstanding | 59,455 | 59,544 | ||||||
Supplemental Data: | ||||||||
Cost of Sales | $ | 351,641 | $ | 305,926 | ||||
Selling, General & Administrative | 113,570 | 103,702 | ||||||
Depreciation and Amortization * | 15,297 | 13,798 |
* | Amount included within cost of sales and selling, general & administrative costs. |
CRANE CO.
Condensed Balance Sheets
(in thousands)
March 31, 2005 | December 31, 2004 | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash and Cash Equivalents | $ | 32,577 | $ | 50,727 | ||
Accounts Receivable | 320,283 | 308,140 | ||||
Inventories | 294,263 | 284,291 | ||||
Other Current Assets | 62,696 | 59,648 | ||||
Total Current Assets | 709,819 | 702,806 | ||||
Property, Plant and Equipment | 280,667 | 287,596 | ||||
Insurance Receivable - Asbestos | 241,833 | 245,160 | ||||
Other Assets | 299,799 | 301,865 | ||||
Goodwill | 575,767 | 579,081 | ||||
Total Assets | $ | 2,107,885 | $ | 2,116,508 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current Liabilities | ||||||
Current Maturities of Long-Term Debt and Loans Payable | $ | 3,418 | $ | 371 | ||
Accounts Payable | 156,176 | 161,477 | ||||
Current Asbestos Liability | 67,800 | 67,800 | ||||
Accrued Liabilities | 150,756 | 157,730 | ||||
Income Taxes | 27,669 | 22,636 | ||||
Total Current Liabilities | 405,819 | 410,014 | ||||
Long-Term Debt | 292,033 | 296,592 | ||||
Deferred Income Taxes | 74,508 | 71,367 | ||||
Long-Term Asbestos Liability | 567,777 | 581,914 | ||||
Pension, Postretirement and Other Liabilities | 92,631 | 92,927 | ||||
Common Shareholders’ Equity | 675,117 | 663,694 | ||||
Total Liabilities and Shareholders’ Equity | $ | 2,107,885 | $ | 2,116,508 | ||
CRANE CO.
Condensed Statements of Cash Flows
(in thousands)
Three Months Ended March 31, | ||||||||
2005 | 2004 | |||||||
Operating Activities: | ||||||||
Net income | $ | 24,998 | $ | 22,177 | ||||
Income from joint venture | (1,198 | ) | (534 | ) | ||||
Depreciation and amortization | 15,297 | 13,798 | ||||||
Cash used for operating working capital | (45,021 | ) | (29,474 | ) | ||||
Other | 978 | (2,673 | ) | |||||
Subtotal | (4,946 | ) | 3,294 | |||||
Payments for asbestos-related fees and costs, net | (10,824 | ) | (5,396 | ) | ||||
Refund associated with termination of the | ||||||||
Master Settlement Agreement | 9,925 | — | ||||||
Total used for operating activities | (5,845 | ) | (2,102 | ) | ||||
Investing Activities: | ||||||||
Capital expenditures | (5,575 | ) | (5,144 | ) | ||||
Proceeds from disposition of capital assets | 255 | 174 | ||||||
Payments for acquisitions, net | — | (50,630 | ) | |||||
Total used for investing activities | (5,320 | ) | (55,600 | ) | ||||
Financing Activities: | ||||||||
Dividends paid | (5,955 | ) | (5,953 | ) | ||||
Settlement of treasury shares acquired on the open market | — | (23,466 | ) | |||||
Stock options exercised - net of shares reacquired | 1,761 | 6,542 | ||||||
Repayment of debt, net | (1,684 | ) | (22,743 | ) | ||||
Total used for financing activities | (5,878 | ) | (45,620 | ) | ||||
Effect of exchange rate on cash and cash equivalents | (1,107 | ) | (115 | ) | ||||
Decrease in cash and cash equivalents | (18,150 | ) | (103,437 | ) | ||||
Cash and cash equivalents at beginning of period | 50,727 | 142,518 | ||||||
Cash and cash equivalents at end of period | $ | 32,577 | $ | 39,081 | ||||
CRANE CO.
Order Backlog
(in thousands)
March 31, 2005 | December 31, 2004 | March 31, 2004 | |||||||
Aerospace & Electronics | $ | 367,472 | $ | 341,505 | $ | 319,954 | |||
Engineered Materials | 19,414 | 16,376 | 17,564 | ||||||
Merchandising Systems | 9,469 | 11,998 | 11,176 | ||||||
Fluid Handling | 200,578 | 183,158 | 163,955 | ||||||
Controls | 15,625 | 13,696 | 13,029 | ||||||
Total Backlog | $ | 612,558 | $ | 566,733 | $ | 525,678 | |||
CRANE CO.
Non-GAAP Financial Measures
(in thousands)
Three Months Ended March 31, | Year Ended December 31, | |||||||||||||||
2005 | 2004 | 2005 | ||||||||||||||
(Estimated Range) | ||||||||||||||||
Net Sales | $ | 507,061 | $ | 448,306 | ||||||||||||
Operating profit - as reported | 41,850 | 38,678 | ||||||||||||||
Operating margin - as reported | 8.3 | % | 8.6 | % | ||||||||||||
Operating profit - as reported | $ | 41,850 | $ | 38,678 | ||||||||||||
Severance charges | 4,800 | 2,500 | ||||||||||||||
Facilities rationalization charges | 1,700 | — | ||||||||||||||
Electronics Group - provisions for contract losses | 2,300 | — | ||||||||||||||
Operating profit - as adjusted | 50,650 | 41,178 | ||||||||||||||
Operating margin - as adjusted | 10.0 | % | 9.2 | % | ||||||||||||
Cash (used for) provided from operating activities including asbestos-related payments | $ | (5,845 | ) | $ | (2,102 | ) | $ | 125,000 | $ | 105,000 | ||||||
Net asbestos payments | 10,824 | 5,396 | 50,000 | 70,000 | ||||||||||||
Refund associated with termination of the Master Settlement Agreement | (9,925 | ) | — | — | — | |||||||||||
Cash (used for) provided from operating activities before asbestos-related payments | $ | (4,946 | ) | $ | 3,294 | $ | 175,000 | $ | 175,000 | |||||||
Capital expenditures | (5,575 | ) | (5,144 | ) | (25,000 | ) | (25,000 | ) | ||||||||
Free cash flow | $ | (10,521 | ) | $ | (1,850 | ) | $ | 150,000 | $ | 150,000 | ||||||
Certain non-GAAP measures have been provided to facilitate comparisons with the prior year.
Free cash flow provides supplemental information to assist management and certain investors in analyzing the
Company’s ability to generate positive cash flow.
Free cash flow is considered a measure of cash generation and should be considered in addition to, but not as a substitute for, other measures reported in accordance with generally accepted accounting principles and may be inconsistent with similar measures presented by other companies.