CIRCOR Reports Third-Quarter 2013 Financial Results

October 31, 2013 at 8:00 AM EDT

BURLINGTON, Mass.--(BUSINESS WIRE)--Oct. 31, 2013-- CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for markets including oil & gas, power generation and aerospace, today announced financial results for the quarter ended September 29, 2013.

Third Quarter 2013 Highlights

  • Adjusted operating margin increased 230 basis points to 11.1%
  • Adjusted EPS grew 22% to $0.93
  • Revenue growth was 2%
  • Free Cash Flow was $30 million; YTD free cash flow at 105% of net income
  • Flow Technologies segment reported record bookings, up 22% year-over-year
  • Restructuring initiatives to simplify CIRCOR on schedule
  • Announcing next step of the CIRCOR simplification process

Management Comments

“Q3 was a strong quarter resulting from our ongoing focus on growth, margin expansion, and cash generation,” said Scott Buckhout, CIRCOR’s President and Chief Executive Officer. “We delivered another quarter of double-digit adjusted operating margin, up 230 basis points from last year. On the growth side, Flow Technologies had a record quarter on orders as we benefited from robust downstream oil & gas activity and penetration into new markets and applications.

“Free cash flow was strong in the quarter as a result of improved margins and working capital performance. Year-to-date free cash flow exceeded net income.

“The restructuring actions we announced last quarter are on schedule and expected to deliver the projected annual savings of approximately $4 million beginning in 2014.

“In addition, we recently updated our 5-year strategic plan. Based on that work we are changing our organizational structure to simplify the way we manage CIRCOR and, over time, better align our businesses with end markets. As part of the organizational change, we will consolidate our group structure from three groups to two. Initially, these changes are focused on reducing management layers and combining back-office operations. Our commercial organization will remain unchanged. We expect to complete this reorganization in the fourth quarter of 2013 and anticipate a reduction in our annual expenses of approximately $5.0 million.

“Finally, we intend to move to two reporting segments during the fourth quarter consistent with the new management structure at CIRCOR. The first segment will be ‘Energy,’ which will include all of the businesses from the existing Energy segment and a majority of the current ‘Flow Technologies’ businesses. The primary markets served in the new Energy segment are oil & gas: upstream, midstream and downstream; as well as the global power market. The second segment will be ‘Aerospace and Defense,’ which will include all of the current Aerospace segment businesses plus a few primarily defense-oriented businesses currently in the Flow Technologies segment.

“In conjunction with these changes, Wayne Robbins will transition from his role as Executive Vice President & COO to Executive Vice President and Group President of the new CIRCOR Energy group. Michael Dill, the current Group Vice President of CIRCOR Aerospace, shall continue as Group Vice President of CIRCOR Aerospace and Defense,” concluded Buckhout.

Consolidated Results

Revenues for the third quarter of 2013 increased 2% to $214.7 million, from $209.8 million in the third quarter of 2012. Adjusted earnings per diluted share in the third quarter of 2013, excluding the impact of the special charges, was $0.93, a 22% increase compared with $0.76 in the prior year’s third-quarter. Net income for the third quarter of 2013, including the impact of special charges/(recoveries) of ($0.2) million, was $17.7 million, or $1.00 per diluted share, compared with net income of $1.9 million, or $0.11 per diluted share, for the third quarter of 2012, which included special and impairment charges of $11.7 million.

The Company received orders totaling $223.3 million during the third quarter of 2013, a decrease of 1% compared with the third quarter of 2012, due primarily to lower Energy orders in the international project business, which were mostly offset by strong Flow Technologies and Aerospace orders. Backlog as of September 29, 2013 increased 1% to $446.9 million from September 30, 2012.

During the third quarter of 2013, the Company generated $29.6 million of free cash flow, up $10.8 million from the same period in 2012. Free cash flow for the first nine months of 2013 was $40.2 million, up $23.4 million from the same period in 2012.

Fourth-Quarter Guidance

For the fourth quarter of 2013, the Company expects revenues to be in the range of $222 to $228 million. In addition, CIRCOR expects restructuring related-charges of approximately $5.3 to $6.0 million. Excluding these charges, adjusted earnings are expected to be in the range of $0.88 to $0.95 per diluted share in the fourth quarter of 2013.

Segment Results

Energy

Energy segment revenues decreased 1% to $108.5 million for the third quarter versus the same period in 2012.

The Energy segment’s adjusted operating margin increased 310 basis points to 17.1% year over year.

Incoming orders for the third quarter of 2013 were $101.0 million, a decrease of 14% year over year, mostly as a result of lower large international project bookings. CIRCOR continues to see high levels of quoting activity on new projects; however some projects are delayed. Ending backlog totaled $208.5 million, a decrease of 1% year over year.

Flow Technologies

Flow Technologies segment revenues increased 3% to $69.8 million for the third quarter of 2013.

Flow Technologies adjusted operating margin for the third quarter of 2013 increased 50 basis points to 13.6%.

Incoming orders for the Flow Technologies segment were $78.5 million for the third quarter of 2013, an increase of 22% year over year. Ending backlog totaled $77.4 million, an increase of 9% compared with the same period last year.

Aerospace

Aerospace segment revenues increased 15% to $36.5 million for the third quarter of 2013.

Aerospace segment adjusted operating margin for the third quarter of 2013 increased 710 basis points to 11.3% from 4.2% in the third quarter of 2012.

Incoming orders for the third quarter of 2013 were $43.8 million, an increase of 2% year over year. Ending backlog totaled $161.0 million, a decrease of 1% year over year.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, October 31, 2013, at 10:00 a.m. ET. To listen to the conference call and view the accompanying presentation slides, visit “Webcasts & Presentations” in the “Investors” portion of the CIRCOR website. The call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. 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. Free cash flow is defined as net cash from operating activities less capital expenditures. 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 and estimated total annualized pre-tax savings from restructuring actions. 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 markets including energy, oil & gas, power generation and aerospace. With more than 7,500 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.

 

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share data)

(UNAUDITED)

 
  Three Months Ended   Nine Months Ended

September 29,
2013

 

September 30,
2012

September 29,
2013

 

September 30,
2012

Net revenues $ 214,731 $ 209,804 $ 643,773 $ 643,946
Cost of revenues 144,593   151,109   443,679   462,823  
GROSS PROFIT 70,138 58,695 200,094 181,123
Selling, general and administrative expenses 46,392 44,314 139,561 134,562
Impairment charges 10,348 10,348
Special charges / (recoveries) (190 ) 1,377   3,441   1,377  
OPERATING INCOME 23,936   2,656   57,092   34,836  
Other (income) expense:
Interest income (67 ) (101 ) (189 ) (262 )
Interest expense 812 1,223 2,559 3,482
Other expense, net 568   564   1,807   887  
TOTAL OTHER EXPENSE 1,313   1,686   4,177   4,107  
INCOME BEFORE INCOME TAXES 22,623 970 52,915 30,729
Provision (benefit) for income taxes 4,903   (899 ) 14,619   9,138  
NET INCOME $ 17,720   $ 1,869   $ 38,296   $ 21,591  
Earnings per common share:
Basic $ 1.01 $ 0.11 $ 2.18 $ 1.24
Diluted $ 1.00 $ 0.11 $ 2.18 $ 1.24
Weighted average number of common shares outstanding:
Basic 17,582 17,433 17,553 17,391
Diluted 17,667 17,467 17,602 17,436
 
 

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)

 
  Nine Months Ended

September 29,
2013

 

September 30,
2012

OPERATING ACTIVITIES  
Net income $ 38,296 $ 21,591
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 11,943 11,765
Amortization 2,273 2,823
Payment for Leslie bankruptcy settlement (1,000 )
Impairment charges 10,348
Compensation expense of share-based plans 3,343 3,409
Tax effect of share-based compensation (536 ) 573
(Gain) loss on property, plant and equipment (70 ) 1,148
Gain on return of acquisition purchase price (3,400 )
Changes in operating assets and liabilities, net of effects from business acquisitions:
Trade accounts receivable 493 (123 )
Inventories (33 ) 8,586
Prepaid expenses and other assets 193 (2,110 )
Accounts payable, accrued expenses and other liabilities 1,259   (26,178 )
Net cash provided by operating activities 53,761   30,832  
INVESTING ACTIVITIES
Additions to property, plant and equipment (13,579 ) (14,097 )
Proceeds from the sale of property, plant and equipment 348 200
Business acquisitions, return of purchase price 3,400    
Net cash used in investing activities (9,831 ) (13,897 )
FINANCING ACTIVITIES
Proceeds from long-term debt 104,626 170,795
Payments of long-term debt (124,351 ) (192,040 )
Dividends paid (2,011 ) (1,997 )
Proceeds from the exercise of stock options 1,843 348
Tax effect of share-based compensation 536   (573 )
Net cash used in financing activities (19,357 ) (23,467 )
Effect of exchange rate changes on cash and cash equivalents (27 ) 653  
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 24,547 (5,879 )
Cash and cash equivalents at beginning of period 61,738   54,855  
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 86,285   $ 48,976  
 
 

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(UNAUDITED)

 
 

September 29,
2013

 

December 31,
2012

ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 86,285 $ 61,738
Short-term investments 98 101
Trade accounts receivable, less allowance for doubtful accounts 151,528 150,825
Inventories 198,454 198,005
Prepaid expenses and other current assets 18,185 16,510
Deferred income tax asset 15,601 15,505
Assets held for sale 480   542  
Total Current Assets 470,631   443,226  
PROPERTY, PLANT AND EQUIPMENT, NET 107,415 105,903
OTHER ASSETS:
Goodwill 76,066 77,428
Intangibles, net 42,728 45,157
Deferred income tax asset 22,600 30,064
Other assets 5,923   8,203  
TOTAL ASSETS $ 725,363   $ 709,981  
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 78,112 $ 80,361
Accrued expenses and other current liabilities 59,674 67,235
Accrued compensation and benefits 30,575 26,540
Income taxes payable 2,610 393
Notes payable and current portion of long-term debt 6,667   7,755  
Total Current Liabilities 177,638   182,284  
LONG-TERM DEBT, NET OF CURRENT PORTION 43,250 62,729
DEFERRED INCOME TAXES 10,037 10,744
OTHER NON-CURRENT LIABILITIES 35,380 35,977
CONTINGENCIES AND COMMITMENTS
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value; 29,000,000 shares authorized; 17,590,312 and 17,445,687 shares issued and outstanding at September 29, 2013 and December 31, 2012, respectively 176 174
Additional paid-in capital 267,562 262,744
Retained earnings 194,797 158,509
Accumulated other comprehensive loss, net of taxes (3,477 ) (3,180 )
Total Shareholders’ Equity 459,058   418,247  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 725,363   $ 709,981  
 
 

CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in millions)

UNAUDITED

 
  Three Months Ended   Nine Months Ended

September 29,
2013

 

September 30,
2012

September 29,
2013

 

September 30,
2012

ORDERS (1)
Energy $ 101.0 $ 118.1 $ 318.4 $ 382.0
Aerospace 43.8 42.9 112.9 111.6
Flow Technologies 78.5   64.5   218.9   207.8
Total orders $ 223.3   $ 225.5   $ 650.2   $ 701.4
 
BACKLOG (2)

September 29,
2013

September 30,
2012

Energy $ 208.5 $ 210.4
Aerospace 161.0 162.7
Flow Technologies 77.4   71.2  
Total backlog $ 446.9   $ 444.3  
 
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

 
  2012   2013
1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL 1ST QTR   2ND QTR   3RD QTR   TOTAL
NET REVENUES
Energy $ 109,264 $ 113,527 $ 109,968 $ 96,582 $ 429,341 $ 96,722 $ 110,832 $ 108,473 $ 316,027
Aerospace 38,085 35,896 31,795 35,316 141,092 37,326 38,177 36,483 111,986
Flow Technologies 66,931   70,439   68,041   69,707   275,119   71,350   74,635   69,775   215,760  
Total 214,280   219,862   209,804   201,605   845,552   205,398   223,644   214,731   643,773  
* ADJUSTED OPERATING MARGIN
Energy 8.2 % 11.1 % 14.0 % 12.5 % 11.4 % 11.1 % 13.8 % 17.1 % 14.1 %
Aerospace 10.8 % 8.8 % 4.2 % 3.5 % 7.0 % 3.5 % 8.6 % 11.3 % 7.8 %
Flow Technologies 11.3 % 12.8 % 13.1 % 13.1 % 12.6 % 12.7 % 14.8 % 13.6 % 13.7 %
Segment operating margin 9.6 % 11.3 % 12.2 % 11.1 % 11.1 % 10.3 % 13.2 % 15.0 % 12.9 %
Corporate expenses (3.2 )% (2.9 )% (3.4 )% (3.4 )% (3.2 )% (3.2 )% (3.3 )% (3.9 )% (3.5 )%
* Adjusted operating margin 6.4 % 8.4 % 8.8 % 7.8 % 7.8 % 7.1 % 10.0 % 11.1 % 9.4 %
Restructuring inventory charges 0.0 % 0.0 % 2.0 % 0.0 % 0.5 % 0.1 % (0.1 )% 0.0 % 0.0 %
Impairment charges 0.0 % 0.0 % 4.9 % 0.0 % 1.2 % 0.0 % 0.0 % 0.0 % 0.0 %
Special (Recoveries) 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % (1.5 )% (0.5 )%
Special charges 0.0 % 0.0 % 0.7 % 1.9 % 0.6 % 0.7 % 1.0 % 1.4 % 1.0 %
Total operating margin 6.4 % 8.4 % 1.3 % 5.8 % 5.5 % 6.3 % 9.1 % 11.1 % 8.9 %
2012 2013
1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL 1ST QTR 2ND QTR 3RD QTR TOTAL
* ADJUSTED OPERATING INCOME
Energy 8,928 12,580 15,432 12,100 49,040 10,751 15,271 18,558 44,580
Aerospace 4,124 3,153 1,324 1,234 9,835 1,320 3,271 4,138 8,729
Flow Technologies 7,587   9,043   8,919   9,105   34,654   9,044   11,065   9,470   29,579  
Segment operating income 20,639 24,776 25,675 22,439 93,529 21,115 29,607 32,166 82,888
Corporate expenses (6,939 ) (6,297 ) (7,170 ) (6,802 ) (27,207 ) (6,588 ) (7,339 ) (8,420 ) (22,346 )
* Adjusted operating income 13,700 18,479 18,505 15,637 66,322 14,528 22,268 23,746 60,542
Restructuring inventory charges 4,124 37 4,161 250 (242 ) 8
Impairment charges 10,348 10,348
Special (Recoveries) (3,151 ) (3,151 )
Special charges / (recoveries)     1,377   3,905   5,282   1,378   2,254   2,961   6,592  
Total operating income 13,700   18,479   2,656   11,695   46,531   12,900   20,256   23,936   57,093  
INTEREST EXPENSE, NET (1,081 ) (1,017 ) (1,122 ) (1,038 ) (4,258 ) (787 ) (838 ) (745 ) (2,370 )
OTHER EXPENSE, NET (138 ) (184 ) (564 ) 373   (514 ) (612 ) (626 ) (568 ) (1,807 )
PRETAX INCOME 12,481 17,278 970 11,030 41,759 11,501 18,792 22,623 52,915
(PROVISION) BENEFIT FOR INCOME TAXES (3,896 ) (6,142 ) 899   (1,822 ) (10,960 ) (3,592 ) (6,124 ) (4,903 ) (14,618 )
EFFECTIVE TAX RATE 31.2 % 35.5 % (92.8 )% 16.5 % 26.2 % 31.2 % 32.6 % 21.7 % 27.6 %
NET INCOME $ 8,585   $ 11,136   $ 1,869   $ 9,208   $ 30,799   $ 7,908   $ 12,668   $ 17,720   $ 38,296  
Weighted Average Common Shares Outstanding (Diluted) 17,390 17,451 17,467 17,499 17,452 17,529 17,607 17,667 17,602
EARNINGS PER COMMON SHARE (Diluted) $ 0.49   $ 0.64   $ 0.11   $ 0.53   $ 1.76   $ 0.45   $ 0.72   $ 1.00   $ 2.17  
ADJUSTED EBITDA $ 18,534   $ 23,043   $ 22,809   $ 16,808   $ 81,194   $ 18,682   $ 26,419   $ 27,850   $ 72,949  
ADJUSTED EBITDA AS A % OF SALES 8.6 % 10.5 % 10.9 % 8.3 % 9.6 % 9.1 % 11.8 % 13.0 % 11.3 %
CAPITAL EXPENDITURES $ 4,122   $ 6,661   $ 3,314   $ 4,073   $ 18,170   $ 4,707   $ 4,100   $ 4,772   $ 13,579  
 
* Adjusted Operating Income & Margin exclude inventory restructuring, impairment and special charges.
 
 

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands, except earnings per share)

UNAUDITED

 
  2012     2013  
1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL 1ST QTR   2ND QTR   3RD QTR   TOTAL
FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES] $ (7,089 ) $ 5,077 $ 18,746 $ 25,619 $ 42,353 $ 1,100 $ 9,525 $ 29,557 $ 40,182
ADD:
Capital Expenditures   4,122     6,661     3,314     4,073     18,170     4,707     4,100     4,772     13,579  
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES $ (2,967 ) $ 11,738   $ 22,060   $ 29,692   $ 60,523   $ 5,807   $ 13,625   $ 34,329   $ 53,761  
NET DEBT / (CASH) [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS] $ 57,263 $ 54,376 $ 34,706 $ 8,645 $ 8,645 $ 8,814 $ (1,376 ) $ (36,466 ) $ (36,466 )
ADD:
Cash & Cash Equivalents 41,291 41,414 48,976 61,738 61,738 57,633 60,831 86,285 86,285
Investments   101     98     102     101     101     99     96     98     98  
TOTAL DEBT $ 98,655   $ 95,888   $ 83,784   $ 70,484   $ 70,484   $ 66,546   $ 59,551   $ 49,917   $ 49,917  
DEBT AS % OF EQUITY 25 % 24 % 20 % 17 % 17 % 16 % 14 % 11 % 11 %
TOTAL DEBT   98,655     95,888     83,784     70,484     70,484     66,546     59,551     49,917     49,917  
TOTAL SHAREHOLDERS' EQUITY   399,018     397,957     409,016     418,247     418,247     418,819     432,151     459,058     459,058  
EBIT [NET INCOME LESS INCOME TAXES LESS INTEREST EXPENSE, NET] $ 13,562 $ 18,295 $ 2,092 $ 12,068 $ 46,017 $ 12,287 $ 19,630 $ 23,368 $ 55,284
LESS:
Interest expense, net (1,081 ) (1,017 ) (1,122 ) (1,038 ) (4,258 ) (787 ) (838 ) (745 ) (2,370 )
(Provision) benefit for income taxes   (3,896 )   (6,142 )   899     (1,822 )   (10,960 )   (3,592 )   (6,124 )   (4,903 )   (14,618 )
NET INCOME $ 8,585   $ 11,136   $ 1,869   $ 9,208   $ 30,799   $ 7,908   $ 12,668   $ 17,720   $ 38,296  
2012   2013  
1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL 1ST QTR 2ND QTR 3RD QTR TOTAL
ADJUSTED OPERATING INCOME [OPERATING INCOME EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES / (RECOVERIES)] $ 13,700 $ 18,479 $ 18,505 $ 15,600 $ 66,322 $ 14,528 $ 22,268 $ 23,746 $ 60,542
LESS:
Inventory restructuring charges 4,124 37 4,161 250 (242 ) 8
Impairment charges 10,348 10,348
Special (Recoveries) (3,151 ) (3,151 )
Special charges           1,377     3,905     5,282     1,378     2,254     2,961     6,592  
OPERATING INCOME $ 13,700   $ 18,479   $ 2,656   $ 11,695   $ 46,531   $ 12,900   $ 20,256   $ 23,936   $ 57,093  
ADJUSTED NET INCOME [NET INCOME EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES / (RECOVERIES), NET OF TAX] $ 8,585 $ 11,136 $ 12,171 $ 11,770 $ 43,663 $ 9,043 $ 14,044 $ 16,439 $ 39,526
LESS:
Inventory restructuring charges, net of tax 2,681 24 2,705 174 (165 ) 9
Impairment charges, net of tax 6,726 6,726
Special (Recoveries), net of tax (3,151 ) (3,151 )
Special charges, net of tax           895     2,538     3,433     961     1,541     1,870     4,372  
NET INCOME $ 8,585   $ 11,136   $ 1,869   $ 9,208   $ 30,799   $ 7,908   $ 12,668   $ 17,720   $ 38,296  
ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES / (RECOVERIES), NET OF TAX] $ 0.49 $ 0.64 $ 0.76 $ 0.69 $ 2.59 $ 0.52 $ 0.81 $ 0.93 $ 2.26
LESS:
Inventory restructuring charges, net of tax $ $ $ 0.17 $ $ 0.17 $ 0.01 $ (0.01 ) $ $
Impairment charges, net of tax $ $ $ 0.43 $ $ 0.43 $ $ $ $
Special (Recoveries), net of tax $ $ $ $ $ $

$

$

(0.18

)

$

(0.18

)

Special charges, net of tax $   $   $ 0.06   $ 0.16   $ 0.22   $ 0.06   $ 0.10   $ 0.11   $ 0.27  
EARNINGS PER COMMON SHARE (Diluted) $ 0.49   $ 0.64   $ 0.11   $ 0.53   $ 1.76   $ 0.45   $ 0.72   $ 1.00   $ 2.17  
2012   2013  
1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL 1ST QTR 2ND QTR 3RD QTR TOTAL
EBITDA [NET INCOME LESS NET INTEREST EXPENSE, DEPRECIATION, AMORTIZATION AND INCOME TAXES] $ 18,534 $ 23,043 $ 2,092 $ 12,068 $ 65,345 $ 17,054 $ 24,407 $ 23,368 $ 69,500
LESS:
Interest expense, net (1,081 ) (1,017 ) (1,122 ) (1,038 ) (4,258 ) (787 ) (838 ) (745 ) (2,370 )
Depreciation (4,008 ) (3,825 ) (3,932 ) (3,967 ) (15,732 ) (4,009 ) (4,026 ) (3,908 ) (11,943 )
Amortization (964 ) (923 ) (936 ) (773 ) (3,596 ) (758 ) (751 ) (764 ) (2,273 )
(Provision) benefit for income taxes   (3,896 )   (6,142 )   899     (1,822 )   (10,960 )   (3,592 )   (6,124 )   (4,903 )   (14,618 )
NET INCOME $ 8,585   $ 11,136   $ 1,869   $ 9,208   $ 30,799   $ 7,908   $ 12,668   $ 17,720   $ 38,296  
ADJUSTED EBITDA [NET INCOME EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES / (RECOVERIES), NET INTEREST EXPENSE, DEPRECIATION, AMORTIZATION AND INCOME TAXES] $ 18,534 $ 23,043 $ 22,809 $ 20,750 $ 85,136 $ 18,682 $ 26,419 $ 27,850 $ 72,949
Inventory restructuring charges $ $ $ (4,124 ) $ (37 ) $ (4,161 ) $ (250 ) $ 242 $ $ (8 )
Impairment charges $ $ $ (10,348 ) $ $ (10,348 ) $ $ $ $
Special Recoveries $ $ $ $ $ $ $ $ 3,151 $ 3,151
Special charges $ $ $ (1,377 ) $ (3,905 ) $ (5,282 ) $ (1,378 ) $ (2,254 ) $ (2,961 ) $ (6,592 )
Interest expense, net $ (1,081 ) $ (1,017 ) $ (1,122 ) $ (1,038 ) $ (4,258 ) $ (787 ) $ (838 ) $ (745 ) $ (2,370 )
Depreciation $ (4,008 ) $ (3,825 ) $ (3,932 ) $ (3,967 ) $ (15,732 ) $ (4,009 ) $ (4,026 ) $ (3,908 ) $ (11,943 )
Amortization $ (964 ) $ (923 ) $ (936 ) $ (773 ) $ (3,596 ) $ (758 ) $ (751 ) $ (764 ) $ (2,273 )
(Provision) / benefit for income taxes $ (3,896 ) $ (6,142 ) $ 899   $ (1,822 ) $ (10,960 ) $ (3,592 ) $ (6,124 ) $ (4,903 ) $ (14,618 )
NET INCOME $ 8,585   $ 11,136   $ 1,869   $ 9,208   $ 30,799   $ 7,908   $ 12,668   $ 17,720   $ 38,296  
 
 

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY

USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

UNAUDITED

 
  4th Quarter 2013
Low   High
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL CHARGES, NET OF TAX] $ 0.88 $ 0.95

LESS: RESTRUCTURING RELATED CHARGES [INVENTORY RESTRUCTURING CHARGES, IMPAIRMENT CHARGES, SPECIAL CHARGES, NET OF TAX]

$ (0.22 ) $ (0.19 )
EXPECTED EARNINGS PER COMMON SHARE (Diluted) $ 0.66   $ 0.76  

Source: CIRCOR International, Inc.

CIRCOR International
Frederic M. Burditt, 781-270-1200
Chief Financial Officer