UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 3, 2012
CIRCOR INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
DELAWARE | 001-14962 | 04-3477276 | ||
(State or other jurisdiction of incorporation) |
(Commission file number) |
(IRS employer identification no.) |
25 CORPORATE DRIVE, SUITE 130
BURLINGTON, MASSACHUSETTS 01803-4238
(Address of principal executive offices) (Zip Code)
(781) 270-1200
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
By press release dated May 3, 2012, the Company announced its financial results for the three months ended April 1, 2012. The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Form 8-K and the Exhibit 99.1 attached hereto shall not be deemed filed for purposes of Section 18 of the Securities and Exchange Act of 1934 (the Exchange Act) or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by special reference in such filing.
In the press release and accompanying supplemental information, the Company uses the following non-GAAP financial measures: free cash flow, EBIT, EBITDA, adjusted operating income, and adjusted earnings per share (EPS). Management of the Company believes that free cash flow (defined as net cash flow from operating activities, less capital expenditures) is an important measure of its liquidity as well as its ability to service long-term debt, fund future growth and to provide a return to shareholders. We also believe this free cash flow definition does not have any material limitations. EBIT (defined as net income plus interest expense, net plus provision for income taxes), EBITDA (defined as net income plus interest expense, net, plus provision for income taxes, plus depreciation and amortization), adjusted operating income (defined as operating income, excluding the impact of Leslie asbestos and bankruptcy charges), and adjusted EPS (defined as earnings per common share, excluding Leslie asbestos and bankruptcy charges, net of tax) are provided because management believes these measurements are useful for investors and financial institutions to analyze and compare companies on the basis of operating performance. Free cash flow, EBIT, EBITDA, adjusted operating income, and adjusted EPS are not measurements for financial performance under GAAP and should not be construed as a substitute for cash flows, operating income, net income or earnings per share. Free cash flow, EBIT, EBITDA, adjusted operating income, and adjusted EPS as we have calculated here, may not necessarily be comparable to similarly titled measures used by other companies. A reconciliation of free cash flow, EBIT, EBITDA, adjusted operating income, and adjusted EPS to the most directly comparable GAAP financial measure is provided in the supplemental information table titled Reconciliation of Key Performance Measures to Commonly Used Generally Accepted Accounting Principle Terms which is included as an attachment to the press release.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit |
Description | |
99.1 | Press Release regarding Earnings, Dated May 3, 2012 |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 3, 2012 | CIRCOR INTERNATIONAL, INC. | |||||
/s/ Frederic M. Burditt | ||||||
By: | Frederic M. Burditt | |||||
Title: | Vice President and Chief Financial Officer |
3
Exhibit 99.1
PRESS RELEASE
CIRCOR International Reports First-Quarter 2012 Financial Results
Company Exceeds Top- and Bottom-line Guidance Expectations
Revenues Increase 5% and Orders Grow 12% Year-Over-Year
Energy Segment Performance In Line With Plan
Burlington, MA May 3, 2012 CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for the energy, aerospace and industrial markets, today announced financial results for the first quarter ended April 1, 2012.
CIRCOR performed well in the first quarter of 2012 as we exceeded our expectations for both top- and bottom-line performance, said Chairman and Chief Executive Officer Bill Higgins. Continued strength in the North American short-cycle Energy business and strong Aerospace segment sales helped drive year-over-year revenue growth of 5%. Bookings were up 12% year-over-year with solid gains in almost all areas excluding the market for LED equipment.
Earnings per diluted share were $0.49, and Energy segment operating margins were slightly better than anticipated at 8.2% in the first quarter, said Higgins. All in all, a good start to the year.
Consolidated Results
Revenues for the first quarter of 2012 were $214.3 million, a 5% increase from $203.4 million in the first quarter of 2011. Net income for the first quarter of 2012 was $8.6 million, or $0.49 per diluted share, compared with net income of $7.9 million, or $0.45 per diluted share, for the first quarter of 2011. Excluding Leslie asbestos and bankruptcy charges, net of tax, adjusted earnings per diluted share was $0.49 in the first quarter of 2011.
Consolidated adjusted operating earnings, which excludes Leslie asbestos and bankruptcy charges was $13.7 million for the first quarter of 2012 down slightly from $13.8 million in the first quarter of 2011 as favorable volume was offset primarily by expenses related to future growth initiatives.
The Company received orders totaling $248.7 million during the first quarter of 2012, an increase of 12% compared with the first quarter of 2011. The increase was driven primarily by increases in the Energy and Aerospace segments and was partially offset by weakness in Flow Technologys LED equipment business. Backlog as of April 1, 2012 was $432.3 million, up 3% from backlog of $419.1 million at April 3, 2011.
During the first quarter of 2012, the Company used $7.1 million of free cash flow (defined as net cash from operating activities less capital expenditures) compared with $0.5 million generated in the first quarter of 2011.
Energy
Energy segment revenues of $109.3 million for the quarter ended April 1, 2012 represent a 10% increase from $99.2 million for the quarter ended April 3, 2011. The increase in revenues year-over-year was due to organic growth of 10% and 2% growth from the February 2011 Brazilian energy acquisition, partially offset by a negative foreign currency impact of 2%.
Incoming orders for the first quarter of 2012 were $135.6 million, an increase of 19% year-over-year due to strength in the North American short-cycle business. International project orders, despite being down from the strong first quarter of last year, experienced its strongest quarter since the fourth quarter of 2010. Ending backlog totaled $195.2 million, a decrease of 4% year-over-year.
For the first quarter of 2012, the Energy segment adjusted operating margin of 8.2% was up from 6.4% in the first quarter of 2011, primarily due to the significant volume increase and the associated leverage in the North American short-cycle business as well as improved pricing in large international projects, partially offset by growth investments in Brazil.
Aerospace
Aerospace segment revenues increased by 19% to $38.1 million for the first quarter of 2012 from $32.1 million in the first quarter of 2011. The increase in Aerospace segment revenues is attributable to 20% organic growth, which was slightly offset by a negative foreign currency impact of 1%.
Incoming orders for the first quarter of 2012 were $40.2 million, an increase of 22% year-over-year. Orders increased due to strength in military projects and other programs. Ending backlog totaled $161.1 million, an increase of 19% year-over-year.
The Aerospace segments adjusted operating margin was 10.8% for the first quarter of 2012, down from 11.6% for the first quarter of 2011. Adjusted operating margin decreased primarily due to increased large future programs expenses, partially offset by favorable volume and associated leverage.
Flow Technologies
Flow Technologies segment revenues decreased 7% to $66.9 million for the first quarter of 2012 from $72.1 million in the first quarter of 2011. First-quarter 2012 Flow Technologies segment revenues reflected an organic decline of 6% due to lower LED equipment shipments and a negative foreign currency impact of 1%.
Incoming orders for this segment were $72.9 million for the first quarter of 2012, a decrease of 3% year-over-year, driven primarily by the soft LED market. Ending backlog totaled $76 million, a decrease of 6% year-over-year, which was also affected by lower LED equipment and navy orders.
This segments adjusted operating margin for the first quarter of 2012 decreased to 11.3%, compared with 13.7% in the first quarter of 2011, due to the decline in the LED equipment market and increased spending on this segments growth initiatives in the power generation market.
Financial Outlook
CIRCOR currently expects revenues for the second quarter of 2012 in the range of $219 million to $224 million. Earnings are expected to be in the range of $0.44 to $0.54 per diluted share. CIRCORs 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, May 3, 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 Companys 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 Companys 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 CIRCORs future performance, including second-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 energy, aerospace and industrial markets. With more than 7,500 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands. CIRCORs culture, built on the CIRCOR Business System, is defined by
the Companys commitment to attracting, developing and retaining the best talent and pursuing continuous improvement in all aspects of its business and operations. The Companys 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 Companys investor relations web site at http://investors.circor.com.
Contact:
Frederic M. Burditt
Chief Financial Officer
CIRCOR International
(781) 270-1200
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
UNAUDITED
Three Months Ended | ||||||||
April 1, 2012 | April 3, 2011 | |||||||
Net revenues |
$ | 214,280 | $ | 203,370 | ||||
Cost of revenues |
155,668 | 147,142 | ||||||
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|
|
|
|||||
GROSS PROFIT |
58,612 | 56,228 | ||||||
Selling, general and administrative expenses |
44,912 | 42,455 | ||||||
Leslie asbestos and bankruptcy charges |
| 1,001 | ||||||
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|
|
|
|||||
OPERATING INCOME |
13,700 | 12,772 | ||||||
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|
|
|
|||||
Other expense (income): |
||||||||
Interest income |
(83 | ) | (43 | ) | ||||
Interest expense |
1,164 | 816 | ||||||
Other expense, net |
138 | 915 | ||||||
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|
|||||
Total other expense |
1,219 | 1,688 | ||||||
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|||||
INCOME BEFORE INCOME TAXES |
12,481 | 11,084 | ||||||
Provision for income taxes |
3,896 | 3,178 | ||||||
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|||||
NET INCOME |
$ | 8,585 | $ | 7,906 | ||||
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Earnings per common share: |
||||||||
Basic |
$ | 0.50 | $ | 0.46 | ||||
Diluted |
$ | 0.49 | $ | 0.45 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
17,315 | 17,163 | ||||||
Diluted |
17,390 | 17,378 |
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
Three Months Ended | ||||||||
April 1, 2012 | April 3, 2011 | |||||||
OPERATING ACTIVITIES |
||||||||
Net income |
$ | 8,585 | $ | 7,906 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||
Depreciation |
4,008 | 3,575 | ||||||
Amortization |
964 | 1,418 | ||||||
Compensation expense of share-based plans |
1,195 | 1,136 | ||||||
Tax effect of share based compensation |
479 | (256 | ) | |||||
Loss on disposal of property, plant and equipment |
2 | 2 | ||||||
Changes in operating assets and liabilities, net of effects from business acquisitions: |
||||||||
Trade accounts receivable |
3,539 | 3,734 | ||||||
Inventories |
(2,179 | ) | (2,818 | ) | ||||
Prepaid expenses and other assets |
(5,549 | ) | (6,657 | ) | ||||
Accounts payable, accrued expenses and other liabilities |
(14,011 | ) | (4,822 | ) | ||||
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|
|||||
Net cash (used in) provided by operating activities |
(2,967 | ) | 3,218 | |||||
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|||||
INVESTING ACTIVITIES |
||||||||
Additions to property, plant and equipment |
(4,122 | ) | (2,693 | ) | ||||
Proceeds from the disposal of property, plant and equipment |
15 | 12 | ||||||
Proceeds from the sale of investments |
0 | (1 | ) | |||||
Business acquisitions, net of cash acquired |
0 | (20,221 | ) | |||||
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|
|
|||||
Net cash used in investing activities |
(4,107 | ) | (22,903 | ) | ||||
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|
|||||
FINANCING ACTIVITIES |
||||||||
Proceeds from borrowings |
41,123 | 60,748 | ||||||
Payments of borrowings |
(47,806 | ) | (34,778 | ) | ||||
Dividends paid |
(666 | ) | (663 | ) | ||||
Proceeds from the exercise of stock options |
73 | 213 | ||||||
Tax effect of share based compensation |
(479 | ) | 256 | |||||
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|
|||||
Net cash (used in) provided by financing activities |
(7,755 | ) | 25,776 | |||||
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|
|||||
Effect of exchange rate changes on cash and cash equivalents |
1,265 | 1,648 | ||||||
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|||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
(13,564 | ) | 7,739 | |||||
Cash and cash equivalents at beginning of year |
54,855 | 45,752 | ||||||
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|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ | 41,291 | $ | 53,491 | ||||
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CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
UNAUDITED
April 1, 2012 | December 31, 2011 | |||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash & cash equivalents |
$ | 41,291 | $ | 54,855 | ||||
Short-term investments |
101 | 99 | ||||||
Trade accounts receivable, less allowance for doubtful accounts of $1,152 and $1,127, respectively |
154,930 | 156,075 | ||||||
Inventories |
208,125 | 203,777 | ||||||
Prepaid expenses and other current assets |
17,067 | 12,376 | ||||||
Deferred income tax asset |
16,578 | 16,320 | ||||||
Assets held for sale |
542 | 542 | ||||||
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|
|||||
Total Current Assets |
438,634 | 444,044 | ||||||
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|
|||||
Property, Plant and Equipment, net |
105,973 | 104,434 | ||||||
Other Assets: |
||||||||
Goodwill |
78,676 | 77,829 | ||||||
Intangibles, net |
58,188 | 58,442 | ||||||
Deferred income tax asset |
28,054 | 27,949 | ||||||
Other assets |
11,008 | 9,825 | ||||||
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|||||
Total Assets |
$ | 720,533 | $ | 722,523 | ||||
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LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ | 87,420 | $ | 92,493 | ||||
Accrued expenses and other current liabilities |
61,332 | 63,386 | ||||||
Accrued compensation and benefits |
23,457 | 24,328 | ||||||
Leslie asbestos and bankruptcy related liabilities |
1,000 | 1,000 | ||||||
Income taxes payable |
4,310 | 5,553 | ||||||
Notes payable and current portion of long-term debt |
3,159 | 8,796 | ||||||
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|||||
Total Current Liabilities |
180,678 | 195,556 | ||||||
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|||||
Long-Term Debt, net of current portion |
95,496 | 96,327 | ||||||
Deferred income taxes |
11,480 | 11,284 | ||||||
Other Non-Current Liabilities |
33,861 | 35,271 | ||||||
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 17,392,225 and 17,268,212 issued and outstanding, respectively |
174 | 173 | ||||||
Additional paid-in capital |
259,538 | 258,209 | ||||||
Retained earnings |
138,296 | 130,373 | ||||||
Accumulated other comprehensive income (loss) |
1,010 | (4,670 | ) | |||||
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|
|||||
Total Shareholders Equity |
399,018 | 384,085 | ||||||
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|||||
Total Liabilities and Shareholders Equity |
$ | 720,533 | $ | 722,523 | ||||
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|
CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in millions)
UNAUDITED
Three Months Ended | ||||||||
April 1, 2012 | April 3, 2011 | |||||||
ORDERS 1 |
||||||||
Energy |
$ | 135.6 | $ | 113.7 | ||||
Aerospace |
40.2 | 32.8 | ||||||
Flow Technologies |
72.9 | 75.0 | ||||||
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Total orders |
$ | 248.7 | $ | 221.5 | ||||
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April 1, 2012 | April 3, 2011 | |||||||
BACKLOG 2 |
||||||||
Energy |
$ | 195.2 | $ | 203.1 | ||||
Aerospace |
161.1 | 135.3 | ||||||
Flow Technologies |
76.0 | 80.7 | ||||||
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Total backlog |
$ | 432.3 | $ | 419.1 | ||||
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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. |
2011 | 2012 | |||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | YTD | 1ST QTR | |||||||||||||||||||
NET REVENUES |
||||||||||||||||||||||||
Energy |
$ | 99,170 | $ | 81,994 | $ | 103,300 | $ | 110,228 | $ | 394,692 | $ | 109,264 | ||||||||||||
Aerospace |
32,110 | 36,029 | 32,681 | 36,017 | 136,837 | 38,085 | ||||||||||||||||||
Flow Technologies |
72,090 | 73,885 | 73,980 | 70,865 | 290,820 | 66,931 | ||||||||||||||||||
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Total |
203,370 | 191,908 | 209,961 | 217,110 | 822,349 | 214,280 | ||||||||||||||||||
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* ADJUSTED OPERATING MARGIN |
||||||||||||||||||||||||
Energy |
6.4 | % | 5.3 | % | 7.2 | % | 8.4 | % | 7.0 | % | 8.2 | % | ||||||||||||
Aerospace |
11.6 | % | 11.2 | % | 5.6 | % | 8.6 | % | 9.3 | % | 10.8 | % | ||||||||||||
Flow Technologies |
13.7 | % | 12.4 | % | 13.6 | % | 12.9 | % | 13.1 | % | 11.3 | % | ||||||||||||
Segment operating margin |
9.8 | % | 9.1 | % | 9.2 | % | 9.9 | % | 9.5 | % | 9.6 | % | ||||||||||||
Corporate expenses |
-3.0 | % | -2.7 | % | -1.7 | % | -3.0 | % | -2.6 | % | -3.2 | % | ||||||||||||
* Adjusted operating margin |
6.8 | % | 6.5 | % | 7.5 | % | 6.9 | % | 6.9 | % | 6.4 | % | ||||||||||||
Leslie asbestos and bankruptcy charges (recoveries) |
0.5 | % | -0.1 | % | -0.1 | % | 0.0 | % | 0.1 | % | 0.0 | % | ||||||||||||
Total operating margin |
6.3 | % | 6.5 | % | 7.6 | % | 6.9 | % | 6.8 | % | 6.4 | % | ||||||||||||
* ADJUSTED OPERATING INCOME |
||||||||||||||||||||||||
Energy |
6,393 | 4,373 | 7,441 | 9,225 | 27,432 | 8,928 | ||||||||||||||||||
Aerospace |
3,727 | 4,021 | 1,846 | 3,081 | 12,675 | 4,124 | ||||||||||||||||||
Flow Technologies |
9,854 | 9,133 | 10,037 | 9,171 | 38,195 | 7,587 | ||||||||||||||||||
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|||||||||||||
Segment operating income |
19,974 | 17,527 | 19,324 | 21,477 | 78,302 | 20,639 | ||||||||||||||||||
Corporate expenses |
(6,201 | ) | (5,100 | ) | (3,585 | ) | (6,441 | ) | (21,327 | ) | (6,939 | ) | ||||||||||||
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|||||||||||||
* Adjusted operating income |
13,773 | 12,427 | 15,739 | 15,036 | 56,975 | 13,700 | ||||||||||||||||||
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|||||||||||||
Leslie asbestos and bankruptcy charges (recoveries) |
1,001 | (124 | ) | (201 | ) | | 676 | | ||||||||||||||||
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|||||||||||||
Total operating income |
12,772 | 12,550 | 15,940 | 15,036 | 56,298 | 13,700 | ||||||||||||||||||
INTEREST EXPENSE, NET |
(773 | ) | (1,232 | ) | (887 | ) | (1,039 | ) | (3,930 | ) | (1,081 | ) | ||||||||||||
OTHER EXPENSE, NET |
(915 | ) | (560 | ) | (354 | ) | (342 | ) | (2,171 | ) | (138 | ) | ||||||||||||
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PRETAX INCOME |
11,084 | 10,758 | 14,699 | 13,655 | 50,196 | 12,481 | ||||||||||||||||||
PROVISION FOR INCOME TAXES |
(3,178 | ) | (3,261 | ) | (3,752 | ) | (3,370 | ) | (13,562 | ) | (3,896 | ) | ||||||||||||
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EFFECTIVE TAX RATE |
28.7 | % | 30.3 | % | 25.5 | % | 24.7 | % | 27.0 | % | 31.2 | % | ||||||||||||
NET INCOME |
$ | 7,906 | $ | 7,497 | $ | 10,947 | $ | 10,285 | $ | 36,634 | $ | 8,585 | ||||||||||||
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Weighted Average Common Shares Outstanding (Diluted) |
17,378 | 17,434 | 17,423 | 17,435 | 17,417 | 17,390 | ||||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) |
$ | 0.45 | $ | 0.43 | $ | 0.63 | $ | 0.59 | $ | 2.10 | $ | 0.49 | ||||||||||||
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EBIT |
$ | 11,857 | $ | 11,990 | $ | 15,586 | $ | 14,694 | $ | 54,127 | $ | 13,562 | ||||||||||||
Depreciation |
3,575 | 3,921 | 3,770 | 3,820 | 15,085 | 4,008 | ||||||||||||||||||
Amortization of intangibles |
1,418 | 778 | 1,097 | 1,058 | 4,351 | 964 | ||||||||||||||||||
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EBITDA |
$ | 16,850 | $ | 16,689 | $ | 20,453 | $ | 19,572 | $ | 73,563 | $ | 18,534 | ||||||||||||
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EBITDA AS A PERCENT OF SALES |
8.3 | % | 8.7 | % | 9.7 | % | 9.0 | % | 8.9 | % | 8.6 | % | ||||||||||||
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CAPITAL EXPENDITURES |
$ | 2,693 | $ | 4,770 | $ | 3,792 | $ | 6,647 | $ | 17,901 | $ | 4,122 | ||||||||||||
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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
2011 | 2012 | |||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | YTD | 1ST QTR | |||||||||||||||||||
FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES] |
$ | 525 | $ | (77,244 | ) | $ | (5,214 | ) | $ | 15,199 | $ | (66,734 | ) | $ | (7,089 | ) | ||||||||
ADD: |
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Capital Expenditures |
2,693 | 4,770 | 3,792 | 6,647 | 17,902 | 4,122 | ||||||||||||||||||
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NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
$ | 3,218 | $ | (72,474 | ) | $ | (1,422 | ) | $ | 21,846 | $ | (48,832 | ) | $ | (2,967 | ) | ||||||||
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NET DEBT (CASH) [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS] |
$ | (22,554 | ) | $ | 56,828 | $ | 64,145 | $ | 50,169 | $ | 50,169 | $ | 57,263 | |||||||||||
ADD: |
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Cash & cash equivalents |
53,491 | 48,302 | 39,254 | 54,855 | 54,855 | 41,291 | ||||||||||||||||||
Investments |
99 | 107 | 98 | 99 | 99 | 101 | ||||||||||||||||||
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TOTAL DEBT |
$ | 31,036 | $ | 105,237 | $ | 103,497 | $ | 105,123 | $ | 105,123 | $ | 98,655 | ||||||||||||
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DEBT AS % OF EQUITY |
8 | % | 27 | % | 27 | % | 27 | % | 27 | % | 25 | % | ||||||||||||
TOTAL DEBT |
31,036 | 105,237 | 103,497 | 105,123 | 105,123 | 98,655 | ||||||||||||||||||
TOTAL SHAREHOLDERS EQUITY |
374,706 | 385,833 | 384,296 | 384,085 | 384,085 | 399,018 | ||||||||||||||||||
EBIT [NET INCOME LESS INCOME TAXES LESS INTEREST EXPENSE, NET] |
$ | 11,857 | $ | 11,990 | $ | 15,586 | $ | 14,694 | $ | 54,127 | $ | 13,562 | ||||||||||||
LESS: |
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Interest expense, net |
(773 | ) | (1,232 | ) | (887 | ) | (1,039 | ) | (3,930 | ) | (1,081 | ) | ||||||||||||
Provision for income taxes |
(3,178 | ) | (3,261 | ) | (3,752 | ) | (3,370 | ) | (13,561 | ) | (3,896 | ) | ||||||||||||
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NET INCOME |
$ | 7,906 | $ | 7,497 | $ | 10,947 | $ | 10,285 | $ | 36,635 | $ | 8,585 | ||||||||||||
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EBITDA [NET INCOME LESS INTEREST EXPENSE, NET, LESS DEPRECIATION LESS AMORTIZATION LESS INCOME TAXES] |
$ | 16,850 | $ | 16,689 | $ | 20,453 | $ | 19,572 | $ | 73,563 | $ | 18,534 | ||||||||||||
LESS: |
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Interest expense, net |
(773 | ) | (1,232 | ) | (887 | ) | (1,039 | ) | (3,931 | ) | (1,081 | ) | ||||||||||||
Depreciation |
(3,575 | ) | (3,921 | ) | (3,770 | ) | (3,820 | ) | (15,085 | ) | (4,008 | ) | ||||||||||||
Amortization |
(1,418 | ) | (778 | ) | (1,097 | ) | (1,058 | ) | (4,351 | ) | (964 | ) | ||||||||||||
Provision for income taxes |
(3,178 | ) | (3,261 | ) | (3,752 | ) | (3,370 | ) | (13,561 | ) | (3,896 | ) | ||||||||||||
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NET INCOME |
$ | 7,906 | $ | 7,497 | $ | 10,947 | $ | 10,285 | $ | 36,635 | $ | 8,585 | ||||||||||||
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ADJUSTED INCOME [NET INCOME EXCLUDING LESLIE ASBESTOS AND BANKRUPTCY CHARGES, NET OF TAX] |
$ | 8,557 | $ | 7,416 | $ | 10,816 | $ | 10,285 | $ | 37,074 | $ | 8,585 | ||||||||||||
LESS: |
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Leslie asbestos and bankruptcy charges (recoveries), net of tax |
651 | (81 | ) | (131 | ) | | 439 | | ||||||||||||||||
NET INCOME |
$ | 7,906 | $ | 7,497 | $ | 10,947 | $ | 10,285 | $ | 36,635 | $ | 8,585 | ||||||||||||
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ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING LESLIE ASBESTOS AND BANKRUPTCY CHARGES, NET OF TAX] |
$ | 0.49 | $ | 0.43 | $ | 0.62 | $ | 0.59 | $ | 2.13 | $ | 0.49 | ||||||||||||
LESS: |
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Leslie asbestos and bankruptcy charges (recoveries), net of tax impact on EPS |
0.04 | (0.00 | ) | (0.01 | ) | | 0.03 | | ||||||||||||||||
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EARNINGS PER COMMON SHARE (Diluted) |
$ | 0.45 | $ | 0.43 | $ | 0.63 | $ | 0.59 | $ | 2.10 | $ | 0.49 | ||||||||||||
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