Attached files
| file | filename |
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| 8-K - 8-K - BARNES GROUP INC | form8-k09302013.htm |
Barnes Group Inc. / 1
 | Exhibit 99.1 Barnes Group Inc. 123 Main Street Bristol, CT 06010 | |||
NEWS RELEASE
BARNES GROUP INC. REPORTS
THIRD QUARTER 2013 FINANCIAL RESULTS
▪ | Quarterly Net Sales from Continuing Operations of $269 million, up 16% |
▪ | Quarterly Diluted EPS from Continuing Operations of $0.39, up 30% on a GAAP basis; Up 8% from Last Year’s Adjusted Quarterly Diluted EPS from Continuing Operations of $0.36 |
▪ | 2013 EPS from Continuing Operations Guidance Updated to $1.33 to $1.38 per diluted share; |
$1.75 to $1.80 on an Adjusted Basis, Up 15% to 18% from 2012
BRISTOL, Conn., October 25, 2013 - Barnes Group Inc. (NYSE: B), an international aerospace and industrial manufacturer and service provider, today reported financial results for the third quarter of 2013. Net sales from continuing operations increased 16% to $269.5 million from $232.5 million in the third quarter of 2012, driven by the sales contribution of the Synventive business and organic sales growth of 5%.
Income from continuing operations for the third quarter was $21.4 million, or $0.39 per diluted share, up 30% from $0.30 in the prior year period. On an adjusted basis, income from continuing operations was up 8% from $0.36 per diluted share a year ago. Last year’s adjusted diluted earnings from continuing operations excluded the impact of $5.1 million pre-tax, or $0.06 per diluted share, of short-term purchase accounting adjustments and transaction costs related to the acquisition of Synventive. A table reconciling the 2012 non-GAAP adjusted results presented in this release to our GAAP results is included at the end of this press release. In the current quarter, income from continuing operations includes an $8.6 million pre-tax inventory valuation charge related to exchange engine parts within the Aerospace repair and overhaul business.
On October 1, 2013 the Company announced it had entered into a definitive agreement to acquire privately held Männer, a leader in high precision mold-making, valve gate hot runner systems, and system solutions for the medical/pharmaceutical, packaging, and personal care/health care industries. The acquisition is anticipated to close on October 31, 2013. Following the closing, Männer will operate as a business unit within Barnes Group’s Industrial Segment.
“During the third quarter we continued to execute our growth strategy of focusing on differentiated products and processes. We announced the pending acquisition of Männer, a recognized brand name and premium supplier of complex, highly-engineered molds and hot runner systems. Männer’s end markets are a good complement to those of our existing industrial businesses” said Patrick J. Dempsey, President and Chief Executive Officer of Barnes Group Inc. “Additionally, we delivered strong performance in our Industrial segment and solid sales growth in our Aerospace OEM business, while our results in the Aerospace aftermarket did not meet our expectations,” continued Dempsey.
Barnes Group Inc. / 2
($ millions; except per share data) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
Unaudited | 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||||||
Net Sales | $ | 269.5 | $ | 232.5 | $ | 37.0 | 15.9 | % | $ | 800.4 | $ | 670.6 | $ | 129.9 | 19.4 | % | |||||||||||
Operating Income | $ | 28.0 | $ | 22.5 | $ | 5.5 | 24.7 | % | $ | 89.1 | $ | 72.9 | $ | 16.3 | 22.3 | % | |||||||||||
% of Sales | 10.4 | % | 9.7 | % | 0.7 | pts. | 11.1 | % | 10.9 | % | 0.2 | pts. | |||||||||||||||
Income from Continuing Operations | $ | 21.4 | $ | 16.0 | $ | 5.4 | 33.4 | % | $ | 46.0 | $ | 53.1 | $ | (7.1 | ) | (13.4 | ) | % | |||||||||
Net Income | $ | 20.9 | $ | 18.5 | $ | 2.4 | 13.1 | % | $ | 243.7 | $ | 65.5 | $ | 178.2 | NM | ||||||||||||
Income from Continuing Operations Per Diluted Share | $ | 0.39 | $ | 0.30 | $ | 0.09 | 30.0 | % | $ | 0.84 | $ | 0.97 | $ | (0.13 | ) | (13.4 | ) | % | |||||||||
(Loss) income from Discontinued Operations Per Diluted Share | $ | (0.01 | ) | $ | 0.04 | $ | (0.05 | ) | NM | $ | 3.60 | $ | 0.22 | $ | 3.38 | NM | |||||||||||
Net Income Per Diluted Share | $ | 0.38 | $ | 0.34 | $ | 0.04 | 11.8 | % | $ | 4.44 | $ | 1.19 | $ | 3.25 | NM | ||||||||||||
NM = Not Meaningful
Aerospace
• | Third quarter 2013 sales were $101.7 million, up 3% from $98.4 million in the same period last year. A sales increase in original equipment manufacturing (“OEM”) was partially offset by declines in aftermarket repair and overhaul and spare parts sales. |
• | Operating profit of $7.2 million for the third quarter of 2013 was down 49% from the prior year period of $14.1 million. Operating profit benefited from the impact of higher OEM sales and lower employee related costs, offset by an $8.6 million inventory valuation charge related to exchange engine parts within the aftermarket repair and overhaul business, lower aftermarket sales, and higher new product introduction costs to support future growth programs. |
Industrial
• | Third quarter 2013 sales were $167.7 million, up 25% from $134.1 million in the same period last year. The increase was driven by Synventive’s sales contribution, organic sales growth of 6%, and favorable foreign exchange of $0.5 million. |
• | Operating profit of $20.9 million for the third quarter of 2013 was up $12.5 million from the prior year period driven by the profit contribution of Synventive, the profit impact of higher organic sales, and productivity improvements. During the 2012 period, operating profit was negatively impacted by $5.1 million of short-term purchase accounting adjustments and transaction costs related to the acquisition of Synventive. |
Additional Information
• | Interest expense decreased to $2.4 million, down from $3.2 million in the prior year period primarily as a result of lower average borrowings in the current quarter as a portion of the proceeds from the Barnes Distribution North America sale were used to reduce debt. |
Barnes Group Inc. / 3
• | The Company’s effective tax rate from continuing operations for the third quarter of 2013 was 15.8% compared with 12.7% in the third quarter of 2012 and 13.5% for full year 2012. The effective tax rate increase in the third quarter 2013 versus the full year 2012 rate was mainly due to several discrete foreign tax related items in 2012 and an increase in the Company’s effective tax rate in Sweden, partially offset by a projected change in earnings attributable to higher-taxing jurisdictions. |
Updated 2013 Outlook
Barnes Group is updating its 2013 guidance, which excludes the impact of the announced Männer acquisition. The Company now expects 2013 revenue from continuing operations to grow approximately 16% from 2012. Excluding $10.5 million pre-tax of non-recurring costs associated with the Company’s CEO transition recorded in the first quarter, adjusted operating margins are expected to be in the range of 12.5% to 13.0% for 2013. GAAP earnings per diluted share from continuing operations are anticipated to be in the range of $1.33 to $1.38.
Full-Year 2013 adjusted earnings per diluted share from continuing operations are anticipated to be in the range of $1.75 to $1.80, up 15% to 18% from 2012’s adjusted diluted earnings per share from continuing operations of $1.52. Adjusted earnings per share from continuing operations exclude the non-recurring CEO transition costs ($0.12 per share) and the tax charge as a result of the U.S. Tax Court’s unfavorable ruling ($0.30 per share).
As a result of the Tax Court decision, the Company expects cash flows to be negatively impacted by approximately $13 million in the fourth quarter of 2013. Excluding this item and the impact from the sale of BDNA, 2013 adjusted cash conversion is anticipated to be greater than 100% of net income.
Conference Call
Barnes Group Inc. will conduct a conference call with investors to discuss third quarter 2013 results at 8:30 a.m. EDT today, October 25, 2013. A webcast of the live call and an archived replay will be available on the Barnes Group investor relations link at www.BGInc.com. The conference is also available by direct dial at (888) 713-4213 in the U.S. or (617) 213-4865 outside of the U.S. (request the Barnes Group Earnings Call), Participant Code: 22589800.
In addition, the call will be recorded and available for playback beginning at 12:00 p.m. (EDT) on Friday, October 25, 2013 by dialing (617) 801-6888, Passcode: 26282633.
About Barnes Group
Founded in 1857, Barnes Group Inc. (NYSE: B) is an international aerospace and industrial manufacturer and service provider, serving a wide range of end markets and customers. The products and services provided by Barnes Group are used in far-reaching applications that provide transportation, communication, manufacturing and technology to the world. Barnes Group’s approximately 3,800 dedicated employees, at more than 60 locations worldwide, are committed to achieving consistent and sustainable profitable growth. For more information, visit www.BGInc.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often address our expected future operating and financial performance and financial condition, and often contain words such as "anticipate," "believe," "expect," "plan," "strategy," "estimate," "project," and similar terms. These forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. These include, among others: difficulty maintaining relationships with employees, customers, distributors, suppliers, business partners or governmental entities; difficulties leveraging market opportunities; changes in market demand for our products and
Barnes Group Inc. / 4
services; rapid technological and market change; the ability to protect intellectual property rights; introduction or development of new products or transfer of work; higher risks in international operations and markets; the impact of intense competition; and other risks and uncertainties described in documents filed with or furnished to the Securities and Exchange Commission (SEC) by the Company, including, among others, those in the Management's Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors sections of the Company's filings. The risks and uncertainties described in our periodic filings with the SEC include, among others, uncertainties relating to conditions in financial markets; currency fluctuations and foreign currency exposure; future financial performance of the industries or customers that we serve; our dependence upon revenues and earnings from a small number of significant customers; a major loss of customers; inability to realize expected sales or profits from existing backlog due to a range of factors, including insourcing decisions, material changes, production schedules and volumes of specific programs; any potential adverse effects associated with a U.S. government shutdown; changes in raw material or product prices and availability; integration of acquired businesses; restructuring costs or savings; the continuing impact of prior acquisitions and divestitures and our pending acquisition of Männer and any other future strategic actions, including acquisitions, joint ventures, divestitures, restructurings, or strategic business realignments, and our ability to achieve the financial and operational targets set in connection with any such actions; the impacts of the U.S. Tax Court's April 16, 2013 decision and any related appeal; the outcome of pending and future legal, governmental, or regulatory proceedings and contingencies; uninsured claims; future repurchases of common stock; future levels of indebtedness; and numerous other matters of global, regional or national scale, including those of a political, economic, business, competitive, environmental, regulatory and public health nature. The Company assumes no obligation to update our forward-looking statements.
Contact:
Barnes Group Inc.
William Pitts
Director, Investor Relations
860.583.7070
# # #
Barnes Group Inc. / 5
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||
2013 | 2012 (1) | % Change | 2013 | 2012 (1) | % Change | ||||||||||||||||
Net sales | $ | 269,491 | $ | 232,476 | 15.9 | $ | 800,430 | $ | 670,580 | 19.4 | |||||||||||
Cost of sales | 189,488 | 170,349 | 11.2 | 544,615 | 483,138 | 12.7 | |||||||||||||||
Selling and administrative expenses | 51,972 | 39,641 | 31.1 | 166,679 | 114,578 | 45.5 | |||||||||||||||
241,460 | 209,990 | 15.0 | 711,294 | 597,716 | 19.0 | ||||||||||||||||
Operating income | 28,031 | 22,486 | 24.7 | 89,136 | 72,864 | 22.3 | |||||||||||||||
Operating margin | 10.4 | % | 9.7 | % | 11.1 | % | 10.9 | % | |||||||||||||
Interest expense | 2,401 | 3,243 | (26.0 | ) | 10,000 | 8,046 | 24.3 | ||||||||||||||
Other expense (income), net | 241 | 873 | (72.4 | ) | 1,702 | 1,787 | (4.8 | ) | |||||||||||||
Income from continuing operations before income taxes | 25,389 | 18,370 | 38.2 | 77,434 | 63,031 | 22.9 | |||||||||||||||
Income taxes | 4,008 | 2,342 | 71.1 | 31,426 | 9,926 | NM | |||||||||||||||
Income from continuing operations | 21,381 | 16,028 | 33.4 | 46,008 | 53,105 | (13.4 | ) | ||||||||||||||
(Loss) income from discontinued operations, net of income taxes | (476 | ) | 2,453 | NM | 197,696 | 12,414 | NM | ||||||||||||||
Net income | $ | 20,905 | $ | 18,481 | 13.1 | $ | 243,704 | $ | 65,519 | NM | |||||||||||
Common dividends | $ | 5,775 | $ | 5,403 | 6.9 | $ | 16,495 | $ | 16,245 | 1.5 | |||||||||||
Per common share: | |||||||||||||||||||||
Basic: | |||||||||||||||||||||
Income from continuing operations | $ | 0.40 | $ | 0.30 | 33.3 | $ | 0.86 | $ | 0.97 | (11.3 | ) | ||||||||||
(Loss) income from discontinued operations, net of income taxes | (0.01 | ) | 0.04 | NM | 3.67 | 0.23 | NM | ||||||||||||||
Net income | $ | 0.39 | $ | 0.34 | 14.7 | $ | 4.53 | $ | 1.20 | NM | |||||||||||
Diluted: | |||||||||||||||||||||
Income from continuing operations | $ | 0.39 | $ | 0.30 | 30.0 | $ | 0.84 | $ | 0.97 | (13.4 | ) | ||||||||||
(Loss) income from discontinued operations, net of income taxes | (0.01 | ) | 0.04 | NM | 3.60 | 0.22 | NM | ||||||||||||||
Net income | $ | 0.38 | $ | 0.34 | 11.8 | $ | 4.44 | $ | 1.19 | NM | |||||||||||
Dividends | 0.11 | 0.10 | 10.0 | 0.31 | 0.30 | 3.3 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic | 53,009,720 | 54,508,387 | (2.7 | ) | 53,818,950 | 54,618,636 | (1.5 | ) | |||||||||||||
Diluted | 54,304,990 | 55,098,263 | (1.4 | ) | 54,854,456 | 55,234,478 | (0.7 | ) | |||||||||||||
NM - Not Meaningful
Notes:
(1) Results for 2012 have been adjusted on a retrospective basis to reflect the BDNA discontinued operations.
Barnes Group Inc. / 6
BARNES GROUP INC.
OPERATIONS BY REPORTABLE BUSINESS SEGMENT
(Dollars in thousands)
(Unaudited)
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2013 | 2012 (1) | % Change | 2013 | 2012 (1) | % Change | |||||||||||||||||
Net sales | ||||||||||||||||||||||
Aerospace | $ | 101,744 | $ | 98,370 | 3.4 | $ | 296,622 | $ | 289,391 | 2.5 | ||||||||||||
Industrial | 167,747 | 134,107 | 25.1 | 503,809 | 381,191 | 32.2 | ||||||||||||||||
Intersegment sales | — | (1 | ) | NM | (1 | ) | (2 | ) | 50.0 | |||||||||||||
Total net sales | $ | 269,491 | $ | 232,476 | 15.9 | $ | 800,430 | $ | 670,580 | 19.4 | ||||||||||||
Operating profit | ||||||||||||||||||||||
Aerospace | $ | 7,157 | $ | 14,122 | (49.3 | ) | $ | 32,730 | $ | 39,798 | (17.8 | ) | ||||||||||
Industrial | 20,874 | 8,364 | NM | 56,406 | 33,066 | 70.6 | ||||||||||||||||
Total operating profit | $ | 28,031 | $ | 22,486 | 24.7 | $ | 89,136 | $ | 72,864 | 22.3 | ||||||||||||
Operating margin | Change | Change | ||||||||||||||||||||
Aerospace | 7.0 | % | 14.4 | % | (740 | ) | bps. | 11.0 | % | 13.8 | % | (280 | ) | bps. | ||||||||
Industrial | 12.4 | % | 6.2 | % | 620 | bps. | 11.2 | % | 8.7 | % | 250 | bps. | ||||||||||
Total operating margin | 10.4 | % | 9.7 | % | 70 | bps. | 11.1 | % | 10.9 | % | 20 | bps. | ||||||||||
NM - Not Meaningful
Notes:
(1) Results for 2012 have been adjusted on a retrospective basis to reflect the impact of the BDNA discontinued operations, including a reallocation of corporate overhead expenses, and the segment realignment.
Barnes Group Inc. / 7
BARNES GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
September 30, 2013 | December 31, 2012 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 230,285 | $ | 86,356 | |||
Accounts receivable | 230,167 | 253,202 | |||||
Inventories | 179,963 | 226,220 | |||||
Deferred income taxes | 26,301 | 33,906 | |||||
Prepaid expenses and other current assets | 16,747 | 18,856 | |||||
Total current assets | 683,463 | 618,540 | |||||
Deferred income taxes | 29,523 | 29,961 | |||||
Property, plant and equipment, net | 224,411 | 233,097 | |||||
Goodwill | 452,935 | 579,905 | |||||
Other intangible assets, net | 366,979 | 383,972 | |||||
Other assets | 21,863 | 23,121 | |||||
Total assets | $ | 1,779,174 | $ | 1,868,596 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Notes and overdrafts payable | $ | 7,700 | $ | 3,795 | |||
Accounts payable | 92,580 | 99,037 | |||||
Accrued liabilities | 127,768 | 96,364 | |||||
Long-term debt - current | 54,833 | 699 | |||||
Total current liabilities | 282,881 | 199,895 | |||||
Long-term debt | 285,600 | 642,119 | |||||
Accrued retirement benefits | 130,190 | 159,103 | |||||
Deferred income taxes | 48,498 | 48,707 | |||||
Other liabilities | 15,459 | 18,654 | |||||
Total stockholders' equity | 1,016,546 | 800,118 | |||||
Total liabilities and stockholders' equity | $ | 1,779,174 | $ | 1,868,596 | |||
Barnes Group Inc. / 8
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Nine months ended September 30, | |||||||
2013 | 2012 | ||||||
Operating activities: | |||||||
Net income | $ | 243,704 | $ | 65,519 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 44,957 | 40,190 | |||||
Amortization of convertible debt discount | 1,776 | 1,641 | |||||
Gain on disposition of property, plant and equipment | (632 | ) | (214 | ) | |||
Stock compensation expense | 16,092 | 6,564 | |||||
Withholding taxes paid on stock issuances | (2,045 | ) | (1,123 | ) | |||
(Gain) loss on the sale of businesses | (313,471 | ) | 788 | ||||
Changes in assets and liabilities, net of the effects of acquisitions/divestitures: | |||||||
Accounts receivable | (11,694 | ) | (12,317 | ) | |||
Inventories | (405 | ) | 981 | ||||
Prepaid expenses and other current assets | (815 | ) | (5,683 | ) | |||
Accounts payable | 8,988 | 2,756 | |||||
Accrued liabilities | 27,784 | (4,295 | ) | ||||
Deferred income taxes | (6,603 | ) | 1,470 | ||||
Long-term retirement benefits | 238 | (17,967 | ) | ||||
Other | 4,700 | (1,009 | ) | ||||
Net cash provided by operating activities | 12,574 | 77,301 | |||||
Investing activities: | |||||||
Proceeds from disposition of property, plant and equipment | 895 | 556 | |||||
Proceeds from (payments for) the sale of businesses | 539,116 | (339 | ) | ||||
Change in restricted cash | — | 4,900 | |||||
Capital expenditures | (33,799 | ) | (22,923 | ) | |||
Business acquisitions, net of cash acquired | — | (296,717 | ) | ||||
Other | (1,901 | ) | (3,013 | ) | |||
Net cash provided (used) by investing activities | 504,311 | (317,536 | ) | ||||
Financing activities: | |||||||
Net change in other borrowings | 3,887 | (4,558 | ) | ||||
Payments on long-term debt | (482,158 | ) | (78,065 | ) | |||
Proceeds from the issuance of long-term debt | 178,000 | 376,000 | |||||
Proceeds from the issuance of common stock | 10,873 | 5,630 | |||||
Common stock repurchases | (68,608 | ) | (19,037 | ) | |||
Dividends paid | (16,495 | ) | (16,245 | ) | |||
Excess tax benefit on stock awards | 3,312 | 1,659 | |||||
Other | (1,320 | ) | (1,184 | ) | |||
Net cash (used) provided by financing activities | (372,509 | ) | 264,200 | ||||
Effect of exchange rate changes on cash flows | (447 | ) | 884 | ||||
Increase in cash and cash equivalents | 143,929 | 24,849 | |||||
Cash and cash equivalents at beginning of period | 86,356 | 62,505 | |||||
Cash and cash equivalents at end of period | $ | 230,285 | $ | 87,354 | |||
Barnes Group Inc. / 9
BARNES GROUP INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(Dollars in thousands)
(Unaudited)
Nine months ended September 30, | |||||||
2013 | 2012 | ||||||
Free cash flow: | |||||||
Net cash provided by operating activities | $ | 12,574 | $ | 77,301 | |||
Capital expenditures | (33,799 | ) | (22,923 | ) | |||
Free cash flow (1) | $ | (21,225 | ) | $ | 54,378 | ||
Free cash flow to net income cash conversion ratio (as adjusted): | |||||||
Free cash flow (from above) | |||||||
Income tax payments related to the gain on the sale of BDNA | $ | (21,225 | ) | $ | 54,378 | ||
Free cash flow (as adjusted)(2) | 95,714 | — | |||||
74,489 | 54,378 | ||||||
Net income | 243,704 | 65,519 | |||||
Gain on the sale of BDNA, net of income taxes | (194,417 | ) | — | ||||
April 2013 tax court decision | 16,388 | — | |||||
Net income (as adjusted)(2) | $ | 65,675 | $ | 65,519 | |||
Free cash flow to net income cash conversion ratio (as adjusted)(2) | 113 | % | 83 | % | |||
Notes:
(1) The Company defines free cash flow as net cash provided by operating activities less capital expenditures. In 2013, net cash provided by operating activities is negatively impacted by $95.7 million of income tax payments related to the gain on the sale of BDNA. The proceeds from the sale are reflected in investing activities. The Company believes that the free cash flow metric is useful to investors and management as a measure of cash generated by business operations that can be used to invest in future growth, pay dividends, repurchase stock and reduce debt. This metric can also be used to evaluate the Company's ability to generate cash flow from business operations and the impact that this cash flow has on the Company's liquidity.
(2) For the purpose of calculating the cash conversion ratio, the Company has excluded the income tax payments related to the gain on the sale of BDNA made during the nine months ended September 30, 2013 from free cash flow and the gain on the sale of BDNA and the tax charge associated with the April 2013 tax court decision from net income.
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BARNES GROUP INC.
NON-GAAP FINANCIAL MEASURE RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2013 | 2012 (1) | % Change | 2013 | 2012 (1) | % Change | |||||||||||||||||||
SEGMENT RESULTS | ||||||||||||||||||||||||
Operating Profit - Aerospace Segment (GAAP) | $ | 7,157 | $ | 14,122 | (49.3 | ) | $ | 32,730 | $ | 39,798 | (17.8 | ) | ||||||||||||
CEO transition costs | — | — | 3,903 | — | ||||||||||||||||||||
Operating Profit - Aerospace Segment as adjusted (Non-GAAP) (2) | $ | 7,157 | $ | 14,122 | (49.3 | ) | $ | 36,633 | $ | 39,798 | (8.0 | ) | ||||||||||||
Operating Margin - Aerospace Segment (GAAP) | 7.0 | % | 14.4 | % | (740 | ) | bps. | 11.0 | % | 13.8 | % | (280 | ) | bps. | ||||||||||
Operating Margin - Aerospace Segment as adjusted (Non-GAAP) (2) | 7.0 | % | 14.4 | % | (740 | ) | bps. | 12.4 | % | 13.8 | % | (140 | ) | bps. | ||||||||||
Operating Profit - Industrial Segment (GAAP) | $ | 20,874 | $ | 8,364 | NM | $ | 56,406 | $ | 33,066 | 70.6 | ||||||||||||||
Synventive short-term purchase accounting adjustments | — | 4,212 | — | 4,212 | ||||||||||||||||||||
Synventive acquisition transaction costs | — | 909 | — | 909 | ||||||||||||||||||||
CEO transition costs | — | — | 6,589 | — | ||||||||||||||||||||
Operating Profit - Industrial Segment as adjusted (Non-GAAP) (2) | $ | 20,874 | $ | 13,485 | 54.8 | $ | 62,995 | $ | 38,187 | 65.0 | ||||||||||||||
Operating Margin - Industrial Segment (GAAP) | 12.4 | % | 6.2 | % | 620 | bps. | 11.2 | % | 8.7 | % | 250 | bps. | ||||||||||||
Operating Margin - Industrial Segment as adjusted (Non-GAAP) (2) | 12.4 | % | 10.1 | % | 230 | bps. | 12.5 | % | 10.0 | % | 250 | bps. | ||||||||||||
CONSOLIDATED RESULTS | ||||||||||||||||||||||||
Operating Income (GAAP) | $ | 28,031 | $ | 22,486 | 24.7 | $ | 89,136 | $ | 72,864 | 22.3 | ||||||||||||||
Synventive short-term purchase accounting adjustments | — | 4,212 | — | 4,212 | ||||||||||||||||||||
Synventive acquisition transaction costs | — | 909 | — | 909 | ||||||||||||||||||||
CEO transition costs | — | — | 10,492 | — | ||||||||||||||||||||
Operating Income as adjusted (Non-GAAP) (2) | $ | 28,031 | $ | 27,607 | 1.5 | $ | 99,628 | $ | 77,985 | 27.8 | ||||||||||||||
Operating Margin (GAAP) | 10.4 | % | 9.7 | % | 70 | bps. | 11.1 | % | 10.9 | % | 20 | bps. | ||||||||||||
Operating Margin as adjusted (Non-GAAP) (2) | 10.4 | % | 11.9 | % | (150 | ) | bps. | 12.4 | % | 11.6 | % | 80 | bps. | |||||||||||
Diluted Income from Continuing Operations per Share (GAAP) | $ | 0.39 | $ | 0.30 | 30.0 | $ | 0.84 | $ | 0.97 | (13.4 | ) | |||||||||||||
Synventive short-term purchase accounting adjustments | — | 0.05 | — | 0.05 | ||||||||||||||||||||
Synventive acquisition transaction costs | — | 0.01 | — | 0.01 | ||||||||||||||||||||
CEO transition costs | — | — | 0.12 | — | ||||||||||||||||||||
April 2013 tax court decision | — | — | 0.30 | — | ||||||||||||||||||||
Diluted Income from Continuing Operations per Share as adjusted (Non-GAAP) (2) | $ | 0.39 | $ | 0.36 | 8.3 | $ | 1.26 | $ | 1.03 | 22.3 | ||||||||||||||
Full-Year 2012 (1) | Full-Year 2013 Outlook(3) | |||||||||||||||||||||||
Diluted Income from Continuing Operations per Share (GAAP) | $ | 1.44 | $ | 1.33 | to | $ | 1.38 | |||||||||||||||||
Synventive short-term purchase accounting adjustments | 0.07 | — | ||||||||||||||||||||||
Synventive acquisition transaction costs | 0.01 | — | ||||||||||||||||||||||
CEO transition costs | — | 0.12 | ||||||||||||||||||||||
April 2013 tax court decision | — | 0.30 | ||||||||||||||||||||||
Diluted Income from Continuing Operations per Share as adjusted (Non-GAAP) (2) | $ | 1.52 | $ | 1.75 | $ | 1.80 | ||||||||||||||||||
Notes:
(1) Results for 2012 have been adjusted on a retrospective basis to reflect the impact of the BDNA discontinued operations, including a reallocation of corporate overhead expenses, and the segment realignment.
(2) The Company has excluded short-term purchase accounting adjustments and transaction costs related to its Synventive acquisition in 2012 and CEO transition costs associated with the modification of outstanding equity awards and the tax charge associated with the April 2013 tax court decision in 2013 from its "as adjusted" financial measurements. Management believes that these adjustments provide the Company and its investors with an indication of our baseline performance excluding items that are not considered to be reflective of our ongoing results. Management does not intend results excluding the adjustments to represent results as defined by GAAP, and the reader should not consider it as an alternative measurement calculated in accordance with GAAP, or as an indicator of the Company's performance. Accordingly, the measurements have limitations depending on their use.
(3) Barnes Group's Full-Year 2013 Outlook excludes the impact of the announced Männer acquisition.