Exhibit 99.2
CRANE CO.
Income Statement Data
(in thousands, except per share data)
Three Months Ended March 31, | ||||||||
2006 | 2005 | |||||||
Net Sales: | ||||||||
Aerospace & Electronics | $ | 142,440 | $ | 133,581 | ||||
Engineered Materials | 85,950 | 80,798 | ||||||
Merchandising Systems | 52,557 | 43,753 | ||||||
Fluid Handling | 245,348 | 228,552 | ||||||
Controls | 23,243 | 20,516 | ||||||
Intersegment Elimination | (155 | ) | (139 | ) | ||||
Total Net Sales | $ | 549,383 | $ | 507,061 | ||||
Operating Profit: | ||||||||
Aerospace & Electronics | $ | 22,474 | $ | 15,950 | ||||
Engineered Materials | 15,739 | 16,858 | ||||||
Merchandising Systems | 3,752 | 3,781 | ||||||
Fluid Handling | 24,356 | 12,424 | ||||||
Controls | 2,592 | 1,759 | ||||||
Corporate | (11,698 | ) | (8,922 | ) | ||||
Total Operating Profit | 57,215 | 41,850 | ||||||
Interest Income | 708 | 341 | ||||||
Interest Expense | (5,527 | ) | (5,720 | ) | ||||
Miscellaneous- Net | 1,261 | 282 | ||||||
Income Before Income Taxes | 53,657 | 36,753 | ||||||
Provision for Income Taxes | 16,258 | 11,755 | ||||||
Net Income | $ | 37,399 | $ | 24,998 | ||||
Share Data: | ||||||||
Net Income Per Diluted Share | $ | 0.61 | $ | 0.42 | ||||
Average Diluted Shares Outstanding | 61,801 | 60,070 | ||||||
Average Basic Shares Outstanding | 60,718 | 59,455 | ||||||
Supplemental Data: | ||||||||
Cost of Sales | $ | 371,501 | $ | 351,641 | ||||
Selling, General & Administrative | 120,667 | 113,570 | ||||||
Depreciation and Amortization * | 15,265 | 12,344 | ||||||
Stock Compensation Expense | 4,082 | 2,953 |
* | Amount included within cost of sales and selling, general & administrative costs. |
CRANE CO.
Condensed Balance Sheets
(in thousands)
March 31, 2006 | December 31, 2005 | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash and Cash Equivalents | $ | 96,501 | $ | 180,392 | ||
Accounts Receivable | 315,063 | 289,521 | ||||
Inventories | 284,884 | 272,354 | ||||
Other Current Assets | 58,610 | 56,128 | ||||
Total Current Assets | 755,058 | 798,395 | ||||
Property, Plant and Equipment | 265,104 | 263,791 | ||||
Insurance Receivable - Asbestos | 222,833 | 224,600 | ||||
Other Assets | 315,842 | 284,345 | ||||
Goodwill | 608,535 | 568,355 | ||||
Total Assets | $ | 2,167,372 | $ | 2,139,486 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current Liabilities | ||||||
Notes Payable and Current Maturities of Long-Term Debt | $ | 189 | $ | 254 | ||
Accounts Payable | 150,690 | 149,647 | ||||
Current Asbestos Liability | 55,000 | 55,000 | ||||
Accrued Liabilities | 167,870 | 174,366 | ||||
Income Taxes | 24,135 | 19,322 | ||||
Total Current Liabilities | 397,884 | 398,589 | ||||
Long-Term Debt | 293,616 | 293,248 | ||||
Deferred Tax Liability | 73,306 | 71,406 | ||||
Long-Term Asbestos Liability | 515,762 | 526,830 | ||||
Other Liabilities | 96,989 | 96,119 | ||||
Shareholders’ Equity | 789,815 | 753,294 | ||||
Total Liabilities and Shareholders’ Equity | $ | 2,167,372 | $ | 2,139,486 | ||
CRANE CO.
Condensed Statements of Cash Flows
(in thousands)
Three Months Ended March 31, | ||||||||
2006 | 2005 | |||||||
Operating Activities: | ||||||||
Net income | $ | 37,399 | $ | 24,998 | ||||
Income from joint venture | (1,761 | ) | (1,198 | ) | ||||
Depreciation and amortization | 15,265 | 12,344 | ||||||
Stock-based compensation expense | 4,082 | 2,953 | ||||||
Cash used for operating working capital | (32,899 | ) | (45,021 | ) | ||||
Other | 4,196 | 978 | ||||||
Subtotal | 26,282 | (4,946 | ) | |||||
Payments for asbestos-related fees and costs, net | (9,300 | ) | (10,824 | ) | ||||
Refund associated with terminated Master Settlement Agreement | — | 9,925 | ||||||
Total provided by (used for) operating activities | 16,982 | (5,845 | ) | |||||
Investing Activities: | ||||||||
Capital expenditures | (8,390 | ) | (5,575 | ) | ||||
Proceeds from disposition of capital assets | 1,236 | 255 | ||||||
Payment for acquisition, net of cash acquired | (85,338 | ) | — | |||||
Total used for investing activities | (92,492 | ) | (5,320 | ) | ||||
Financing Activities: | ||||||||
Dividends paid | (7,623 | ) | (5,955 | ) | ||||
Common shares acquired on the open market | (12,041 | ) | — | |||||
Stock options exercised - net of shares reacquired | 8,396 | 1,761 | ||||||
Excess tax benefit from stock-based compensation | 1,716 | — | ||||||
Repayment of debt, net | (202 | ) | (1,684 | ) | ||||
Total used for financing activities | (9,754 | ) | (5,878 | ) | ||||
Effect of exchange rate on cash and cash equivalents | 1,373 | (1,107 | ) | |||||
Decrease in cash and cash equivalents | (83,891 | ) | (18,150 | ) | ||||
Cash and cash equivalents at beginning of period | 180,392 | 50,727 | ||||||
Cash and cash equivalents at end of period | $ | 96,501 | $ | 32,577 | ||||
CRANE CO.
Order Backlog
(in thousands)
March 31, 2006 | December 31, 2005 | March 31, 2005 | |||||||
Aerospace & Electronics | $ | 364,539 | $ | 365,010 | $ | 367,472 | |||
Engineered Materials | 16,972 | 17,241 | 19,414 | ||||||
Merchandising Systems | 14,838 | 9,183 | 9,469 | ||||||
Fluid Handling | 205,741 | 188,832 | 200,578 | ||||||
Controls | 19,480 | 16,864 | 15,625 | ||||||
Total Backlog | $ | 621,570 | $ | 597,130 | $ | 612,558 | |||
CRANE CO.
Non-GAAP Financial Measures
(in thousands)
March 31, 2006 | December 31, 2005 | |||||||
BALANCE SHEET ITEMS | ||||||||
Notes Payable and Current Maturities of Long-Term Debt | $ | 189 | $ | 254 | ||||
Long-Term Debt | 293,616 | 293,248 | ||||||
Total Debt | 293,805 | 293,502 | ||||||
Less Cash and Cash Equivalents | (96,501 | ) | (180,392 | ) | ||||
Net Debt | 197,304 | 113,110 | ||||||
Shareholders’ Equity | 789,815 | 753,294 | ||||||
Total Capitalization | $ | 987,119 | $ | 866,404 | ||||
Percentage of Net Debt to Total Capitalization | 20.0 | % | 13.1 | % |
Three Months Ended March 31, | Year Ended December 31, | |||||||||||
2006 | 2005 | 2006 | ||||||||||
(Estimated) | ||||||||||||
CASH FLOW ITEMS | ||||||||||||
Cash Provided from (Used by) Operating Activities before Asbestos - Related Payments | $ | 26,282 | ($ | 4,946 | ) | $ | 260,000 | |||||
Net Asbestos Payments * | (9,300 | ) | (10,824 | ) | (45,000 | ) | ||||||
Refund Associated with Terminated Master Settlement Agreement | — | 9,925 | — | |||||||||
Cash Provided from (Used by) Operating Activities | 16,982 | (5,845 | ) | 215,000 | ||||||||
Less: Capital Expenditures | (8,390 | ) | (5,575 | ) | (30,000 | ) | ||||||
Free Cash Flow | $ | 8,592 | ($ | 11,420 | ) | $ | 185,000 | |||||
* | Includes certain legal fees and expenses relating to the terminated Master Settlement Agreement amounting to $5.1 million in 2005, of which $3.6 million was incurred in the first quarter of 2005. |
Certain | non-GAAP measures have been provided to facilitate comparison with the prior year. |
Free cash flow provides supplemental information to assist management and 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.