Exhibit 99.2
CRANE CO.
Income Statement Data
(in thousands, except per share data)
Three Months Ended March 31, | ||||||||
2008 | 2007 | |||||||
Net Sales: | ||||||||
Aerospace & Electronics | $ | 158,451 | $ | 148,392 | ||||
Engineered Materials | 82,773 | 87,748 | ||||||
Merchandising Systems | 113,504 | 97,364 | ||||||
Fluid Handling | 288,500 | 262,951 | ||||||
Controls | 35,640 | 31,762 | ||||||
Total Net Sales | $ | 678,868 | $ | 628,217 | ||||
Operating Profit: | ||||||||
Aerospace & Electronics | $ | 15,995 | $ | 21,026 | ||||
Engineered Materials | 11,654 | 16,038 | ||||||
Merchandising Systems | 14,138 | 9,631 | ||||||
Fluid Handling | 44,762 | 31,141 | ||||||
Controls | 1,300 | 2,346 | ||||||
Corporate | (12,500 | ) | (11,783 | ) | ||||
Total Operating Profit | 75,349 | 68,399 | ||||||
Interest Income | 2,284 | 1,313 | ||||||
Interest Expense | (6,505 | ) | (6,868 | ) | ||||
Miscellaneous- Net | 330 | 1,813 | ||||||
Income Before Income Taxes | 71,458 | 64,657 | ||||||
Provision for Income Taxes | 23,080 | 21,012 | ||||||
Net Income | $ | 48,378 | $ | 43,645 | ||||
Share Data: | ||||||||
Net Income per Diluted Share | $ | 0.79 | $ | 0.71 | ||||
Average Diluted Shares Outstanding | 60,955 | 61,207 | ||||||
Average Basic Shares Outstanding | 60,040 | 60,209 | ||||||
Supplemental Data: | ||||||||
Cost of Sales | $ | 452,531 | $ | 423,683 | ||||
Selling, General & Administrative | 150,988 | 136,135 | ||||||
Depreciation and Amortization * | 14,983 | 15,576 | ||||||
Stock-Based Compensation Expense | 3,615 | 4,304 |
* | Amount included within cost of sales and selling, general & administrative costs. |
CRANE CO.
Condensed Balance Sheets
(in thousands)
March 31, 2008 | December 31, 2007 | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash and Cash Equivalents | $ | 294,728 | $ | 283,370 | ||
Accounts Receivable, net | 373,792 | 345,176 | ||||
Current Insurance Receivable—Asbestos | 33,600 | 33,600 | ||||
Inventories, net | 344,563 | 327,719 | ||||
Other Current Assets | 57,735 | 47,757 | ||||
Total Current Assets | 1,104,418 | 1,037,622 | ||||
Property, Plant and Equipment, net | 292,029 | 289,683 | ||||
Long-Term Insurance Receivable—Asbestos | 293,940 | 306,557 | ||||
Other Assets | 448,159 | 476,880 | ||||
Goodwill | 769,106 | 766,550 | ||||
Total Assets | $ | 2,907,652 | $ | 2,877,292 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current Liabilities | ||||||
Notes Payable and Current Maturities of Long-Term Debt | $ | 9,613 | $ | 548 | ||
Accounts Payable | 197,936 | 177,978 | ||||
Current Asbestos Liability | 84,000 | 84,000 | ||||
Accrued Liabilities | 221,450 | 230,295 | ||||
Income Taxes | 2,291 | 731 | ||||
Total Current Liabilities | 515,290 | 493,552 | ||||
Long-Term Debt | 398,345 | 398,301 | ||||
Long-Term Deferred Tax Liability | 32,593 | 31,880 | ||||
Long-Term Asbestos Liability | 928,098 | 942,776 | ||||
Other Liabilities | 114,366 | 117,586 | ||||
Minority Interest | 8,469 | 8,394 | ||||
Shareholders’ Equity | 910,491 | 884,803 | ||||
Total Liabilities and Shareholders’ Equity | $ | 2,907,652 | $ | 2,877,292 | ||
CRANE CO.
Condensed Statements of Cash Flows
(in thousands)
Three Months Ended March 31, | ||||||||
2008 | 2007 | |||||||
Operating Activities: | ||||||||
Net income | $ | 48,378 | $ | 43,645 | ||||
Income from joint venture | — | (1,017 | ) | |||||
Depreciation and amortization | 14,983 | 15,576 | ||||||
Stock-based compensation expense | 3,615 | 4,304 | ||||||
Deferred income taxes | 6,097 | (9,819 | ) | |||||
Cash used for operating working capital | (29,834 | ) | (25,648 | ) | ||||
Other | 2,951 | (11,332 | ) | |||||
Subtotal | 46,190 | 15,709 | ||||||
Asbestos related payments, net of insurance recoveries | (2,061 | ) | 21,180 | |||||
Total provided by operating activities | 44,129 | 36,889 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (9,080 | ) | (6,963 | ) | ||||
Proceeds from disposition of capital assets | 676 | 11,032 | ||||||
Payment for acquisition, net of cash acquired | (85 | ) | (5 | ) | ||||
Proceeds from divestiture | 506 | — | ||||||
Total (used for) provided by investing activities | (7,983 | ) | 4,064 | |||||
Financing Activities: | ||||||||
Dividends paid | (10,795 | ) | (9,050 | ) | ||||
Reacquisition of shares on open market | (40,000 | ) | (40,001 | ) | ||||
Stock options exercised—net of shares reacquired | 3,556 | (387 | ) | |||||
Excess tax benefit from stock-based compensation | 107 | 690 | ||||||
Increase in short-term debt | 9,037 | 1,733 | ||||||
Total used for financing activities | (38,095 | ) | (47,015 | ) | ||||
Effect of exchange rate on cash and cash equivalents | 13,307 | 1,376 | ||||||
Increase (decrease) in cash and cash equivalents | 11,358 | (4,686 | ) | |||||
Cash and cash equivalents at beginning of period | 283,370 | 138,607 | ||||||
Cash and cash equivalents at end of period | $ | 294,728 | $ | 133,921 | ||||
CRANE CO.
Order Backlog
(in thousands)
March 31, 2008 | December 31, 2007 | March 31, 2007 | |||||||
Aerospace & Electronics | $ | 407,398 | $ | 392,822 | $ | 405,792 | |||
Engineered Materials | 15,941 | 14,802 | 17,437 | ||||||
Merchandising Systems | 42,551 | 34,093 | 33,231 | ||||||
Fluid Handling | 268,302 | 242,591 | 237,144 | ||||||
Controls | 34,464 | 35,273 | 33,224 | ||||||
Total Backlog | $ | 768,656 | $ | 719,581 | $ | 726,828 | |||
CRANE CO.
Non-GAAP Financial Measures
(in thousands)
March 31, 2008 | December 31, 2007 | |||||||
BALANCE SHEET ITEMS | ||||||||
Notes Payable and Current Maturities of Long-Term Debt | $ | 9,613 | $ | 548 | ||||
Long-Term Debt | 398,345 | 398,301 | ||||||
Total Debt | 407,958 | 398,849 | ||||||
Less: Cash and Cash Equivalents | (294,728 | ) | (283,370 | ) | ||||
Net Debt | 113,230 | 115,479 | ||||||
Shareholders’ Equity | 910,491 | 884,803 | ||||||
Net Capitalization | $ | 1,023,721 | $ | 1,000,282 | ||||
Percentage of Net Debt to Net Capitalization | 11.1 | % | 11.5 | % |
Three Months Ended March 31, | Year Ended December 31, | ||||||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||||||
(Estimated) | |||||||||||||||
CASH FLOW ITEMS | |||||||||||||||
Cash Provided from Operating Activities before Asbestos—Related Payments | $ | 46,190 | $ | 15,709 | 275,000 | $ | 243,031 | ||||||||
Asbestos Related Payments, Net of Insurance Recoveries | (2,061 | ) | (10,320 | ) | (55,000 | ) | (41,698 | ) | |||||||
Equitas Receipts | — | 31,500 | — | 31,500 | |||||||||||
Cash Provided from Operating Activities | 44,129 | 36,889 | 220,000 | 232,833 | |||||||||||
Less: Capital Expenditures | (9,080 | ) | (6,963 | ) | (50,000 | ) | (47,169 | ) | |||||||
Free Cash Flow | $ | 35,049 | $ | 29,926 | 170,000 | $ | 185,664 | ||||||||
Certain non-GAAP measures have been provided to facilitate comparison with the prior year.
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company’s performance. In addition, Free Cash Flow provides supplemental information to assist management and investors in analyzing the Company’s ability to generate positive cash flow. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.