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| 8-K - 8-K - CIRCOR INTERNATIONAL INC | a8-kq42013earnings.htm |
EXHIBIT 99.1
CIRCOR Reports Fourth-Quarter and Year-End 2013 Financial Results
Burlington, MA - February 27, 2014 - CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for markets including oil & gas, power generation and aerospace & defense, today announced financial results for the fourth quarter and fiscal year ended December 31, 2013.
Fourth-Quarter 2013 Highlights
• | Orders up 14% |
• | Organic revenue growth of 6% |
• | Adjusted operating margin increased 380 basis points to 11.6% |
• | Adjusted EPS grew 38% to $0.95 |
Full-Year 2013 Highlights
• | Adjusted operating margin increased 210 basis points to 9.9% |
• | Adjusted EPS grew 24% to $3.21 |
• | Free cash flow was $55 million or 116% of net income |
• | 2013 restructuring actions completed or on schedule |
“CIRCOR ended 2013 with strong fourth-quarter bookings, margin expansion and free cash flow,” said Scott Buckhout, CIRCOR President and Chief Executive Officer. “We delivered another quarter of double-digit adjusted operating margin at 11.6%, which was up 380 basis points from the fourth quarter of 2012 due primarily to our margin improvement actions. In addition, we delivered strong free cash flow at 116% of net income for the full year.”
“Revenue for the quarter came in higher by 6% organically but lower than anticipated as a few large Energy shipments were rescheduled into the first half of 2014,” said Buckhout. “Energy segment bookings improved in Q4 as demand increased and our win rate improved for large international projects.”
“Our organizational change from three operating segments to two is now complete,” said Buckhout. “We are on track to deliver our planned $5 million reduction in annual costs. As we enter 2014, CIRCOR has a simpler organizational structure and is better positioned to grow. We remain focused on core revenue growth, margin expansion, and strong free cash flow.”
Selected Consolidated Results
Note: These amounts exclude special and impairment charges. Refer to reconciliation to commonly used US GAAP terms.
Segment Results
Note: These amounts exclude special and impairment charges. Refer to reconciliation to commonly used US GAAP terms.
On October 31, 2013 the Company announced a change from three reportable segments to two reportable segments beginning in the fourth quarter of 2013. On January 23, 2014 the Company released supplemental information to previously issued summary financial information by reportable segment for each of the prior quarterly reporting periods from the first quarter of 2011 through the third quarter of 2013. This information was set forth in a Form 8-K filed with the Securities and Exchange Commission. The segment realignment has no effect on the Company’s previously reported net income, financial condition or cash flows.
First-Quarter 2014 Guidance
For the first quarter of 2014, the Company expects:
• | Revenues in the range of $200 million to $210 million; |
• | Adjusted earnings per share, excluding special charges, in the range of $0.68 to $0.73; and |
• | Restructuring related trailing costs of approximately $1.5 million to $1.7 million and a special gain of $2.2 million for a legal settlement. |
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Conference Call Information
CIRCOR International will hold a conference call to review its financial results today, February 27, 2014, 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. 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 first-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 highly engineered products and sub-systems for markets including oil & gas, power generation and aerospace & defense. With more than 7,000 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands that fulfill its customers’ unique application needs. The Company’s strategy is to grow organically and through complementary acquisitions; simplify CIRCOR’s operations; achieve world class operational excellence; and attract and retain top industry talent. For more information, visit the Company’s investor relations web site at http://investors.circor.com.
Contact:
Rajeev Bhalla
Executive Vice President & Chief Financial Officer
CIRCOR International
(781) 270-1200
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CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share data) UNAUDITED | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | ||||||||||||
Net revenues | $ | 214,035 | $ | 201,606 | $ | 857,808 | $ | 845,552 | |||||||
Cost of revenues | 146,528 | 141,186 | 590,207 | 604,009 | |||||||||||
GROSS PROFIT | 67,507 | 60,420 | 267,601 | 241,543 | |||||||||||
Selling, general and administrative expenses | 43,394 | 44,820 | 182,954 | 179,382 | |||||||||||
Impairment charges | 6,872 | — | 6,872 | 10,348 | |||||||||||
Special charges, net | 5,160 | 3,905 | 8,602 | 5,282 | |||||||||||
OPERATING INCOME | 12,081 | 11,695 | 69,173 | 46,531 | |||||||||||
Other (income) expense: | |||||||||||||||
Interest expense, net | 792 | 1,038 | 3,161 | 4,259 | |||||||||||
Other, net | 167 | (373 | ) | 1,975 | 513 | ||||||||||
TOTAL OTHER EXPENSE | 959 | 665 | 5,136 | 4,772 | |||||||||||
INCOME BEFORE INCOME TAXES | 11,122 | 11,030 | 64,037 | 41,759 | |||||||||||
Provision for income taxes | 2,297 | 1,821 | 16,916 | 10,960 | |||||||||||
NET INCOME | $ | 8,825 | $ | 9,209 | $ | 47,121 | $ | 30,799 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.50 | $ | 0.53 | $ | 2.68 | $ | 1.77 | |||||||
Diluted | $ | 0.50 | $ | 0.53 | $ | 2.67 | $ | 1.76 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 17,594 | 17,450 | 17,564 | 17,405 | |||||||||||
Diluted | 17,710 | 17,499 | 17,629 | 17,452 | |||||||||||
Dividends paid per common share | $ | 0.0375 | $ | 0.0375 | $ | 0.1500 | $ | 0.1500 | |||||||
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CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (UNAUDITED) | |||||||
Twelve Months Ended | |||||||
December 31, 2013 | December 31, 2012 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 47,121 | $ | 30,799 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 16,034 | 15,732 | |||||
Amortization | 3,039 | 3,596 | |||||
Intangible impairment charges | 6,872 | 10,348 | |||||
Payment provision for Leslie bankruptcy settlement | — | (1,000 | ) | ||||
Compensation expense of stock-based plans | 5,056 | 4,374 | |||||
Tax effect of share-based compensation | (732 | ) | 642 | ||||
Deferred income taxes | 5,778 | (832 | ) | ||||
(Gain) loss on disposal of property, plant and equipment | (322 | ) | 1,135 | ||||
Gain on return of acquisition purchase price | (3,400 | ) | — | ||||
Changes in operating assets and liabilities: | |||||||
Trade accounts receivable, net | 8,203 | 7,063 | |||||
Inventories, net | (311 | ) | 6,592 | ||||
Prepaid expenses and other assets | 160 | (2,422 | ) | ||||
Accounts payable, accrued expenses and other liabilities | (15,292 | ) | (15,504 | ) | |||
Net cash provided by operating activities | 72,206 | 60,523 | |||||
INVESTING ACTIVITIES | |||||||
Additions to property, plant and equipment | (17,328 | ) | (18,170 | ) | |||
Proceeds from the sale of property, plant and equipment | 664 | 541 | |||||
Business acquisitions, return of purchase price | 3,400 | — | |||||
Net cash used in investing activities | (13,264 | ) | (17,629 | ) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from long-term debt | 146,578 | 186,409 | |||||
Payments of long-term debt | (166,239 | ) | (220,918 | ) | |||
Dividends paid | (2,700 | ) | (2,663 | ) | |||
Proceeds from the exercise of stock options | 2,394 | 406 | |||||
Tax effect of share-based compensation | 732 | (642 | ) | ||||
Net cash used in financing activities | (19,235 | ) | (37,408 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 735 | 1,397 | |||||
INCREASE IN CASH AND CASH EQUIVALENTS | 40,445 | 6,883 | |||||
Cash and cash equivalents at beginning of year | 61,738 | 54,855 | |||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 102,183 | $ | 61,738 | |||
Cash paid during the year for: | |||||||
Income taxes | $ | 8,143 | $ | 16,699 | |||
Interest | $ | 3,254 | $ | 3,140 | |||
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CIRCOR INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) UNAUDITED | |||||||
December 31, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 102,180 | $ | 61,738 | |||
Short-term investments | 95 | 101 | |||||
Trade accounts receivable, less allowance for doubtful accounts of $2,449 and $1,706, respectively | 144,742 | 150,825 | |||||
Inventories, net | 199,404 | 198,005 | |||||
Prepaid expenses and other current assets | 19,815 | 17,052 | |||||
Deferred income tax asset | 17,686 | 15,505 | |||||
Total Current Assets | 483,922 | 443,226 | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | 107,724 | 105,903 | |||||
OTHER ASSETS: | |||||||
Goodwill | 75,876 | 77,428 | |||||
Intangibles, net | 35,656 | 45,157 | |||||
Deferred income tax asset | 18,579 | 30,064 | |||||
Other assets | 4,893 | 8,203 | |||||
TOTAL ASSETS | $ | 726,650 | $ | 709,981 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 70,589 | $ | 80,361 | |||
Accrued expenses and other current liabilities | 57,507 | 67,235 | |||||
Accrued compensation and benefits | 31,289 | 26,540 | |||||
Income taxes payable | 3,965 | 393 | |||||
Notes payable and current portion of long-term debt | 7,203 | 7,755 | |||||
Total Current Liabilities | 170,553 | 182,284 | |||||
LONG-TERM DEBT, NET OF CURRENT PORTION | 42,435 | 62,729 | |||||
DEFERRED INCOME TAXES | 9,666 | 10,744 | |||||
OTHER NON-CURRENT LIABILITIES | 27,109 | 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; 17,610,526 and 17,445,687 shares issued and outstanding at December 31, 2013 and 2012, respectively | 176 | 174 | |||||
Additional paid-in capital | 269,884 | 262,744 | |||||
Retained earnings | 202,930 | 158,509 | |||||
Accumulated other comprehensive gain (loss), net of taxes | 3,897 | (3,180 | ) | ||||
Total Shareholders’ Equity | 476,887 | 418,247 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 726,650 | $ | 709,981 | |||
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CIRCOR INTERNATIONAL, INC. SUMMARY OF ORDERS AND BACKLOG (in millions) UNAUDITED | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | ||||||||||||
ORDERS (1) | |||||||||||||||
Energy | $ | 187.4 | $ | 156.6 | $ | 691.7 | $ | 714.2 | |||||||
Aerospace & Defense | 43.7 | 45.7 | 189.6 | 189.6 | |||||||||||
Total orders | $ | 231.1 | $ | 202.3 | $ | 881.3 | $ | 903.8 | |||||||
BACKLOG (2) | December 31, 2013 | December 31, 2012 | |||||||||||||
Energy | $ | 288.7 | $ | 266.0 | |||||||||||
Aerospace & Defense | 173.9 | 181.1 | |||||||||||||
Total backlog | $ | 462.6 | $ | 447.1 | |||||||||||
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. | |||||||||||||||
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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 | 4TH QTR | TOTAL | |||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||||||
Energy | $ | 164,885 | $ | 171,386 | $ | 166,918 | $ | 156,193 | $ | 659,382 | $ | 157,104 | $ | 173,557 | $ | 167,660 | $ | 162,649 | $ | 660,970 | ||||||||||
Aerospace & Defense | 49,395 | 48,476 | 42,886 | 45,413 | 186,170 | 48,294 | 50,087 | 47,071 | 51,386 | 196,838 | ||||||||||||||||||||
Total | $ | 214,280 | $ | 219,862 | $ | 209,804 | $ | 201,606 | $ | 845,552 | $ | 205,398 | $ | 223,644 | $ | 214,731 | $ | 214,035 | $ | 857,808 | ||||||||||
ADJUSTED OPERATING MARGIN | ||||||||||||||||||||||||||||||
Energy | 8.7 | % | 10.8 | % | 12.9 | % | 11.9 | % | 11.1 | % | 10.8 | % | 13.3 | % | 15.2 | % | 17.1 | % | 14.1 | % | ||||||||||
Aerospace & Defense | 11.5 | % | 11.7 | % | 7.1 | % | 5.1 | % | 9.0 | % | 5.9 | % | 11.4 | % | 12.1 | % | 8.4 | % | 9.5 | % | ||||||||||
Segment operating margin | 9.3 | % | 11.0 | % | 11.7 | % | 10.4 | % | 10.6 | % | 9.6 | % | 12.9 | % | 14.5 | % | 15.0 | % | 13.0 | % | ||||||||||
Corporate expenses | (2.9 | )% | (2.6 | )% | (2.9 | )% | (2.6 | )% | (2.8 | )% | (2.6 | )% | (2.9 | )% | (3.4 | )% | (3.5 | )% | (3.1 | )% | ||||||||||
Adjusted operating margin | 6.4 | % | 8.4 | % | 8.8 | % | 7.8 | % | 7.8 | % | 7.1 | % | 10.0 | % | 11.1 | % | 11.6 | % | 9.9 | % | ||||||||||
Restructuring inventory charges | — | % | — | % | 2.0 | % | — | % | 0.5 | % | 0.1 | % | (0.1 | )% | — | % | 0.3 | % | 0.1 | % | ||||||||||
Impairment charges | — | % | — | % | 4.9 | % | — | % | 1.2 | % | — | % | — | % | — | % | 3.2 | % | 0.8 | % | ||||||||||
Special (recoveries) | — | % | — | % | — | % | — | % | — | % | — | % | — | % | (1.5 | )% | — | % | (0.4 | )% | ||||||||||
Special charges | — | % | — | % | 0.7 | % | 1.9 | % | 0.6 | % | 0.7 | % | 1.0 | % | 1.4 | % | 2.4 | % | 1.4 | % | ||||||||||
Total GAAP operating margin | 6.4 | % | 8.4 | % | 1.3 | % | 5.8 | % | 5.5 | % | 6.3 | % | 9.1 | % | 11.1 | % | 5.6 | % | 8.1 | % | ||||||||||
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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 | 4TH QTR | TOTAL | |||||||||||||||||||||
ADJUSTED OPERATING INCOME | ||||||||||||||||||||||||||||||
Energy | $ | 14,282 | $ | 18,445 | $ | 21,575 | $ | 18,591 | $ | 72,893 | $ | 16,940 | $ | 23,114 | $ | 25,441 | $ | 27,809 | $ | 93,304 | ||||||||||
Aerospace & Defense | 5,672 | 5,671 | 3,026 | 2,332 | 16,701 | 2,864 | 5,724 | 5,705 | 4,342 | 18,635 | ||||||||||||||||||||
Segment operating income | 19,954 | 24,116 | 24,601 | 20,923 | 89,594 | 19,804 | 28,838 | 31,146 | 32,151 | 111,939 | ||||||||||||||||||||
Corporate expenses | (6,254 | ) | (5,637 | ) | (6,096 | ) | (5,286 | ) | (23,272 | ) | (5,277 | ) | (6,570 | ) | (7,400 | ) | (7,400 | ) | (26,646 | ) | ||||||||||
Adjusted operating income | 13,700 | 18,479 | 18,505 | 15,637 | 66,322 | 14,528 | 22,268 | 23,746 | 24,751 | 85,293 | ||||||||||||||||||||
Restructuring inventory charges | — | — | 4,124 | 37 | 4,161 | 250 | (242 | ) | — | 638 | 646 | |||||||||||||||||||
Impairment charges | — | — | 10,348 | — | 10,348 | — | — | — | 6,872 | 6,872 | ||||||||||||||||||||
Special (recoveries) | — | — | — | — | — | — | — | (3,151 | ) | — | (3,151 | ) | ||||||||||||||||||
Special charges | — | — | 1,377 | 3,905 | 5,282 | 1,378 | 2,254 | 2,961 | 5,160 | 11,752 | ||||||||||||||||||||
Total GAAP operating income | 13,700 | 18,479 | 2,656 | 11,695 | 46,531 | 12,900 | 20,256 | 23,936 | 12,081 | 69,174 | ||||||||||||||||||||
INTEREST EXPENSE, NET | (1,081 | ) | (1,017 | ) | (1,122 | ) | (1,038 | ) | (4,259 | ) | (787 | ) | (838 | ) | (745 | ) | (792 | ) | (3,162 | ) | ||||||||||
OTHER EXPENSE, NET | (138 | ) | (184 | ) | (564 | ) | 373 | (513 | ) | (612 | ) | (626 | ) | (568 | ) | (167 | ) | (1,974 | ) | |||||||||||
PRETAX INCOME | 12,481 | 17,278 | 970 | 11,030 | 41,759 | 11,501 | 18,792 | 22,623 | 11,122 | 64,038 | ||||||||||||||||||||
(PROVISION) BENEFIT FOR INCOME TAXES | (3,896 | ) | (6,142 | ) | 899 | (1,822 | ) | (10,960 | ) | (3,592 | ) | (6,124 | ) | (4,903 | ) | (2,297 | ) | (16,916 | ) | |||||||||||
EFFECTIVE TAX RATE | 31.2 | % | 35.5 | % | (92.8 | )% | 16.5 | % | 26.2 | % | 31.2 | % | 32.6 | % | 21.7 | % | 20.7 | % | 26.4 | % | ||||||||||
NET INCOME | $ | 8,585 | $ | 11,136 | $ | 1,869 | $ | 9,208 | $ | 30,799 | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 8,825 | $ | 47,121 | ||||||||||
Weighted Average Common Shares Outstanding (Diluted) | 17,390 | 17,451 | 17,467 | 17,499 | 17,452 | 17,529 | 17,607 | 17,667 | 17,710 | 17,629 | ||||||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.49 | $ | 0.64 | $ | 0.11 | $ | 0.53 | $ | 1.76 | $ | 0.45 | $ | 0.72 | $ | 1.00 | $ | 0.50 | $ | 2.67 | ||||||||||
ADJUSTED EBITDA | $ | 18,534 | $ | 23,043 | $ | 22,809 | $ | 20,750 | $ | 85,136 | $ | 18,682 | $ | 26,419 | $ | 27,850 | $ | 29,441 | $ | 102,392 | ||||||||||
ADJUSTED EBITDA AS A % OF SALES | 8.6 | % | 10.5 | % | 10.9 | % | 10.3 | % | 10.1 | % | 9.1 | % | 11.8 | % | 13.0 | % | 13.8 | % | 11.9 | % | ||||||||||
CAPITAL EXPENDITURES | $ | 4,122 | $ | 6,661 | $ | 3,314 | $ | 4,073 | $ | 18,170 | $ | 4,707 | $ | 4,100 | $ | 4,772 | $ | 3,749 | $ | 17,328 | ||||||||||
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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 | 4TH QTR | TOTAL | |||||||||||||||||||||
FREE CASH FLOW | $ | (7,089 | ) | $ | 5,077 | $ | 18,746 | $ | 25,619 | $ | 42,353 | $ | 1,100 | $ | 9,525 | $ | 29,557 | $ | 14,696 | $ | 54,878 | |||||||||
ADD: | ||||||||||||||||||||||||||||||
Capital Expenditures | 4,122 | 6,661 | 3,314 | 4,073 | 18,170 | 4,707 | 4,100 | 4,772 | 3,749 | 17,328 | ||||||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | (2,967 | ) | $ | 11,738 | $ | 22,060 | $ | 29,692 | $ | 60,523 | $ | 5,807 | $ | 13,625 | $ | 34,329 | $ | 18,445 | $ | 72,206 | |||||||||
NET DEBT (CASH) | $ | 57,263 | $ | 54,376 | $ | 34,706 | $ | 8,645 | $ | 8,645 | $ | 8,814 | $ | (1,376 | ) | $ | (36,466 | ) | $ | (52,637 | ) | $ | (52,637 | ) | ||||||
ADD: | ||||||||||||||||||||||||||||||
Cash & Cash Equivalents | 41,291 | 41,414 | 48,976 | 61,738 | 61,738 | 57,633 | 60,831 | 86,285 | 102,180 | 102,180 | ||||||||||||||||||||
Investments | 101 | 98 | 102 | 101 | 101 | 99 | 96 | 98 | 95 | 95 | ||||||||||||||||||||
TOTAL DEBT | $ | 98,655 | $ | 95,888 | $ | 83,784 | $ | 70,484 | $ | 70,484 | $ | 66,546 | $ | 59,551 | $ | 49,917 | $ | 49,638 | $ | 49,638 | ||||||||||
DEBT AS % OF EQUITY | 25 | % | 24 | % | 20 | % | 17 | % | 17 | % | 16 | % | 14 | % | 11 | % | 10 | % | 10 | % | ||||||||||
TOTAL DEBT | 98,655 | 95,888 | 83,784 | 70,484 | 70,484 | 66,546 | 59,551 | 49,917 | 49,638 | 49,638 | ||||||||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 399,018 | 397,957 | 409,016 | 418,247 | 418,247 | 418,819 | 432,151 | 459,058 | 476,887 | 476,887 | ||||||||||||||||||||
10
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 | 4TH QTR | TOTAL | |||||||||||||||||||||
ADJUSTED OPERATING INCOME | $ | 13,700 | $ | 18,479 | $ | 18,505 | $ | 15,637 | $ | 66,322 | $ | 14,528 | $ | 22,268 | $ | 23,746 | $ | 24,751 | $ | 85,293 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Inventory restructuring charges | — | — | 4,124 | 37 | 4,161 | 250 | (242 | ) | — | 638 | 646 | |||||||||||||||||||
Impairment charges | — | — | 10,348 | — | 10,348 | — | — | — | 6,872 | 6,872 | ||||||||||||||||||||
Special (recoveries) | — | — | — | — | — | — | — | (3,151 | ) | — | (3,151 | ) | ||||||||||||||||||
Special charges | — | — | 1,377 | 3,905 | 5,282 | 1,378 | 2,254 | 2,961 | 5,160 | 11,753 | ||||||||||||||||||||
OPERATING INCOME | $ | 13,700 | $ | 18,479 | $ | 2,656 | $ | 11,695 | $ | 46,531 | $ | 12,900 | $ | 20,256 | $ | 23,936 | $ | 12,081 | $ | 69,173 | ||||||||||
ADJUSTED NET INCOME | $ | 8,585 | $ | 11,136 | $ | 12,171 | $ | 11,770 | $ | 43,663 | $ | 9,043 | $ | 14,044 | $ | 16,439 | $ | 16,773 | $ | 56,299 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Inventory restructuring charges, net of tax | — | — | 2,681 | 24 | 2,705 | 174 | (165 | ) | — | 396 | 405 | |||||||||||||||||||
Impairment charges, net of tax | — | — | 6,726 | — | 6,726 | — | — | — | 4,261 | 4,261 | ||||||||||||||||||||
Special (recoveries), net of tax | — | — | — | — | — | — | — | (3,151 | ) | — | (3,151 | ) | ||||||||||||||||||
Special charges, net of tax | — | — | 895 | 2,538 | 3,433 | 961 | 1,541 | 1,870 | 3,291 | 7,663 | ||||||||||||||||||||
NET INCOME | $ | 8,585 | $ | 11,136 | $ | 1,869 | $ | 9,208 | $ | 30,799 | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 8,825 | $ | 47,121 | ||||||||||
ADJUSTED EARNINGS PER SHARE | $ | 0.49 | $ | 0.64 | $ | 0.77 | $ | 0.69 | $ | 2.59 | $ | 0.52 | $ | 0.81 | $ | 0.93 | $ | 0.95 | $ | 3.21 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Inventory restructuring charges, net of tax | — | — | 0.17 | — | 0.17 | 0.01 | (0.01 | ) | — | 0.02 | 0.02 | |||||||||||||||||||
Impairment charges, net of tax | — | — | 0.43 | — | 0.43 | — | — | — | 0.24 | 0.24 | ||||||||||||||||||||
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 | 0.19 | 0.46 | ||||||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.49 | $ | 0.64 | $ | 0.11 | $ | 0.53 | $ | 1.76 | $ | 0.45 | $ | 0.72 | $ | 1.00 | $ | 0.50 | $ | 2.67 | ||||||||||
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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 | 4TH QTR | TOTAL | |||||||||||||||||||||
EBITDA | $ | 18,534 | $ | 23,043 | $ | 6,960 | $ | 16,808 | $ | 65,345 | $ | 17,054 | $ | 24,407 | $ | 23,368 | $ | 11,914 | $ | 86,272 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Interest expense, net | (1,081 | ) | (1,017 | ) | (1,122 | ) | (1,038 | ) | (4,258 | ) | (787 | ) | (838 | ) | (745 | ) | (792 | ) | (3,162 | ) | ||||||||||
Depreciation | (4,008 | ) | (3,825 | ) | (3,932 | ) | (3,967 | ) | (15,732 | ) | (4,009 | ) | (4,026 | ) | (3,908 | ) | (4,091 | ) | (16,034 | ) | ||||||||||
Amortization | (964 | ) | (923 | ) | (936 | ) | (773 | ) | (3,596 | ) | (758 | ) | (751 | ) | (764 | ) | (766 | ) | (3,039 | ) | ||||||||||
(Provision) benefit for income taxes | (3,896 | ) | (6,142 | ) | 899 | (1,822 | ) | (10,960 | ) | (3,592 | ) | (6,124 | ) | (4,903 | ) | (2,297 | ) | (16,916 | ) | |||||||||||
NET INCOME | $ | 8,585 | $ | 11,136 | $ | 1,869 | $ | 9,208 | $ | 30,799 | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 8,825 | $ | 47,121 | ||||||||||
ADJUSTED EBITDA | $ | 18,534 | $ | 23,043 | $ | 22,809 | $ | 20,750 | $ | 85,136 | $ | 18,682 | $ | 26,419 | $ | 27,850 | $ | 29,441 | $ | 102,392 | ||||||||||
Inventory restructuring charges | — | — | (4,124 | ) | (37 | ) | (4,161 | ) | (250 | ) | 242 | — | (638 | ) | (646 | ) | ||||||||||||||
Impairment charges | — | — | (10,348 | ) | — | (10,348 | ) | — | — | — | (6,872 | ) | (6,872 | ) | ||||||||||||||||
Special (recoveries) | — | — | — | — | — | — | — | 3,151 | — | 3,151 | ||||||||||||||||||||
Special charges | — | — | (1,377 | ) | (3,905 | ) | (5,282 | ) | (1,378 | ) | (2,254 | ) | (2,961 | ) | (5,160 | ) | (11,753 | ) | ||||||||||||
Interest expense, net | (1,081 | ) | (1,017 | ) | (1,122 | ) | (1,038 | ) | (4,258 | ) | (787 | ) | (838 | ) | (745 | ) | (792 | ) | (3,162 | ) | ||||||||||
Depreciation | (4,008 | ) | (3,825 | ) | (3,932 | ) | (3,967 | ) | (15,732 | ) | (4,009 | ) | (4,026 | ) | (3,908 | ) | (4,091 | ) | (16,034 | ) | ||||||||||
Amortization | (964 | ) | (923 | ) | (936 | ) | (773 | ) | (3,596 | ) | (758 | ) | (751 | ) | (764 | ) | (766 | ) | (3,039 | ) | ||||||||||
(Provision) / benefit for income taxes | (3,896 | ) | (6,142 | ) | 899 | (1,822 | ) | (10,960 | ) | (3,592 | ) | (6,124 | ) | (4,903 | ) | (2,297 | ) | (16,916 | ) | |||||||||||
NET INCOME | $ | 8,585 | $ | 11,136 | $ | 1,869 | $ | 9,208 | $ | 30,799 | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 8,825 | $ | 47,121 | ||||||||||
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CIRCOR INTERNATIONAL, INC. RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS UNAUDITED | ||||||||
1st Quarter 2014 | ||||||||
Low | High | |||||||
REVENUE (in millions) | $ | 200 | $ | 210 | ||||
EXPECTED ADJUSTED EARNINGS PER SHARE (DILUTIVE) | $ | 0.68 | $ | 0.73 | ||||
LESS: | ||||||||
Restructuring related charges | } | $ | 0.07 | $ | 0.06 | |||
Impairment charges | ||||||||
Special charges | ||||||||
PLUS: | ||||||||
Special gain on legal settlement | $ | 0.09 | $ | 0.09 | ||||
EXPECTED EARNINGS PER COMMON SHARE (Diluted) | $ | 0.70 | $ | 0.76 | ||||
Note: Assumes 29% tax rate and exchange rates at present values. | ||||||||
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