Attached files
| file | filename |
|---|---|
| 8-K - 8-K - CIRCOR INTERNATIONAL INC | cir_12312015x8-k.htm |
| EX-99.2 - FOURTH QUARTER 2015 INVESTOR REVIEW PRESENTATION - CIRCOR INTERNATIONAL INC | cir_12312015x8-kxex992.htm |
EXHIBIT 99.1
CIRCOR Reports Fourth-Quarter and Year-End 2015 Financial Results
Burlington, MA - February 19, 2016 - 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, 2015.
Fourth-Quarter 2015 Highlights
• | Revenues of $164.2 million |
• | Adjusted EPS of $0.63 |
• | Cost control and restructuring actions continue to drive bottom-line performance |
• | Consolidated adjusted operating margin at 10.2%, up 60 bps |
• | Energy adjusted operating margin at 13.4% |
• | Aerospace & Defense adjusted operating margin at 10.4% |
• | Free cash flow of $28.4 million |
“CIRCOR concluded 2015 with solid fourth-quarter performance, demonstrating continued progress on our margin expansion and simplification strategy,” said Scott Buckhout, President and Chief Executive Officer. “We achieved the $12 million in savings we anticipated from restructuring and simplification actions during 2015, which contributed to consolidated margin improvement of 60 basis points to 10.2% in Q4.”
“Our Energy team has done a great job aligning our cost structure to the weakness we are experiencing in our Energy markets,” said Buckhout. “In Aerospace & Defense, our margin expansion initiatives continue to improve the bottom line. As expected, we achieved double-digit margins in the fourth quarter, up over 500 basis points from the prior year. Cash flow was strong in the quarter as we improve our ability to align our working capital needs with market demands.”
“Laying the foundation for above-market growth remains our top priority globally. We continue to invest in long-term growth initiatives across both operating segments, including sales and marketing, new product development and engineering. Operationally, customer on-time delivery averaged 90% in the quarter, up from 79% at the beginning of the year. Finally, we continue to focus on disciplined capital deployment including complementary acquisitions,” concluded Buckhout.
First-Quarter 2016 Guidance
For the first quarter of 2016, the Company will provide its guidance during the conference call later today.
1
Conference Call Information
CIRCOR International will hold a conference call to review its financial results today, February 19, 2016, at 9:00 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 share (diluted), adjusted operating margin, adjusted operating income 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.
2
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. 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 AND 10-Q/A, 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. 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 website at http://investors.circor.com.
Contact:
Rajeev Bhalla
Executive Vice President & Chief Financial Officer
CIRCOR International
(781) 270-1200
3
CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) UNAUDITED | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2015 | December 31, 2014 | ||||||||||||
Net revenues | $ | 164,243 | $ | 218,558 | $ | 656,267 | $ | 841,446 | |||||||
Cost of revenues | 113,747 | 148,093 | 456,935 | 584,426 | |||||||||||
GROSS PROFIT | 50,496 | 70,465 | 199,332 | 257,020 | |||||||||||
Selling, general and administrative expenses | 36,959 | 49,430 | 156,302 | 178,800 | |||||||||||
Impairment charges | — | 726 | 2,502 | 726 | |||||||||||
Special charges, net | 1,256 | 12,159 | 14,354 | 12,737 | |||||||||||
OPERATING INCOME | 12,281 | 8,150 | 26,174 | 64,757 | |||||||||||
Other expense (income): | |||||||||||||||
Interest expense, net | 570 | 407 | 2,844 | 2,652 | |||||||||||
Other expense (income), net | 2,099 | (722 | ) | 902 | (1,156 | ) | |||||||||
TOTAL OTHER EXPENSE (INCOME), NET | 2,669 | (315 | ) | 3,746 | 1,496 | ||||||||||
INCOME BEFORE INCOME TAXES | 9,612 | 8,465 | 22,428 | 63,261 | |||||||||||
Provision for (benefit from) income taxes | 2,456 | (690 | ) | 12,565 | 12,875 | ||||||||||
NET INCOME | $ | 7,156 | $ | 9,155 | $ | 9,863 | $ | 50,386 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.44 | $ | 0.52 | $ | 0.59 | $ | 2.85 | |||||||
Diluted | $ | 0.43 | $ | 0.51 | $ | 0.58 | $ | 2.84 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 16,425 | 17,678 | 16,850 | 17,660 | |||||||||||
Diluted | 16,555 | 17,782 | 16,913 | 17,768 | |||||||||||
Dividends paid per common share | $ | 0.0375 | $ | 0.0375 | $ | 0.1500 | $ | 0.1500 | |||||||
4
CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (UNAUDITED) | |||||||||||
Twelve Months Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 9,863 | $ | 50,386 | $ | 47,121 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 14,254 | 16,446 | 16,034 | ||||||||
Amortization | 9,681 | 3,116 | 3,039 | ||||||||
Provision for bad debt expense | 2,561 | 7,817 | 1,194 | ||||||||
Loss on write down of inventory | 15,404 | 12,993 | 4,944 | ||||||||
Impairment charges | 2,502 | 726 | 6,872 | ||||||||
Compensation expense of share-based plans | 6,579 | 7,188 | 5,056 | ||||||||
Tax effect of share-based plan compensation | (134 | ) | (756 | ) | (732 | ) | |||||
Deferred income tax expense (benefit) | 781 | (2,740 | ) | 5,778 | |||||||
Loss (gain) on write down of property, plant and equipment | 305 | (79 | ) | (322 | ) | ||||||
(Gain) loss on sale of businesses | (1,044 | ) | 3,413 | — | |||||||
Gain on return of acquisition purchase price | — | — | (3,400 | ) | |||||||
Changes in operating assets and liabilities, net of effects of acquisition and dispositions: | |||||||||||
Trade accounts receivable | 20,393 | (38,439 | ) | 7,009 | |||||||
Inventories | (14,446 | ) | (16,945 | ) | (5,255 | ) | |||||
Prepaid expenses and other assets | (4,786 | ) | 884 | 160 | |||||||
Accounts payable, accrued expenses and other liabilities | (34,771 | ) | 26,816 | (15,292 | ) | ||||||
Net cash provided by operating activities | 27,142 | 70,826 | 72,206 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Purchases of property, plant and equipment | (12,711 | ) | (12,810 | ) | (17,328 | ) | |||||
Proceeds from the sale of property, plant and equipment | 2,209 | 791 | 664 | ||||||||
Business acquisitions, return of purchase price | — | — | 3,400 | ||||||||
Proceeds from divestitures | 2,759 | 10,177 | — | ||||||||
Business acquisition, net of cash acquired | (79,983 | ) | — | — | |||||||
Net cash used in investing activities | (87,726 | ) | (1,842 | ) | (13,264 | ) | |||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from long-term debt | 261,394 | 150,062 | 146,578 | ||||||||
Payments of long-term debt | (182,004 | ) | (185,361 | ) | (166,239 | ) | |||||
Debt issuance costs | — | (920 | ) | — | |||||||
Dividends paid | (2,559 | ) | (2,681 | ) | (2,700 | ) | |||||
Proceeds from the exercise of stock options | 258 | 420 | 2,394 | ||||||||
Tax effect of share-based plan compensation | 134 | 756 | 732 | ||||||||
Purchases of common stock | (74,972 | ) | — | — | |||||||
Net cash provided by (used in) financing activities | 2,251 | (37,724 | ) | (19,235 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (8,498 | ) | (12,163 | ) | 729 | ||||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (66,831 | ) | 19,097 | 40,436 | |||||||
Cash and cash equivalents at beginning of year | 121,372 | 102,275 | 61,839 | ||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 54,541 | $ | 121,372 | $ | 102,275 | |||||
5
CIRCOR INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands) UNAUDITED | |||||||
December 31, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 54,541 | $ | 121,372 | |||
Trade accounts receivable, less allowance for doubtful accounts of $8,290 and $9,536, respectively | 125,628 | 156,738 | |||||
Inventories | 177,840 | 183,434 | |||||
Prepaid expenses and other current assets | 16,441 | 21,626 | |||||
Deferred income tax asset | — | 22,861 | |||||
Total Current Assets | 374,450 | 506,031 | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | 87,029 | 96,212 | |||||
OTHER ASSETS: | |||||||
Goodwill | 115,452 | 72,430 | |||||
Intangibles, net | 48,981 | 26,887 | |||||
Deferred income tax asset | 36,799 | 19,048 | |||||
Other assets | 7,204 | 4,114 | |||||
TOTAL ASSETS | $ | 669,915 | $ | 724,722 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 64,284 | $ | 87,112 | |||
Accrued expenses and other current liabilities | 52,878 | 63,911 | |||||
Accrued compensation and benefits | 18,424 | 24,728 | |||||
Income taxes payable | 6,585 | 1,312 | |||||
Notes payable and current portion of long-term debt | — | 8,423 | |||||
Total Current Liabilities | 142,171 | 185,486 | |||||
LONG-TERM DEBT, NET OF CURRENT PORTION | 90,500 | 5,261 | |||||
DEFERRED INCOME TAXES | 10,424 | 7,771 | |||||
OTHER NON-CURRENT LIABILITIES | 26,043 | 32,111 | |||||
SHAREHOLDERS’ EQUITY: | |||||||
Common stock | 177 | 177 | |||||
Additional paid-in capital | 283,621 | 277,227 | |||||
Retained earnings | 257,939 | 250,635 | |||||
Common treasury stock, at cost | (74,972 | ) | — | ||||
Accumulated other comprehensive loss, net of tax | (65,988 | ) | (33,946 | ) | |||
Total Shareholders’ Equity | 400,777 | 494,093 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 669,915 | $ | 724,722 | |||
6
CIRCOR INTERNATIONAL, INC. SUMMARY OF ORDERS AND BACKLOG (in millions) UNAUDITED | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
ORDERS (1) | December 31, 2015 | December 31, 2014 | December 31, 2015 | December 31, 2014 | |||||||||||
Energy | $ | 97.9 | $ | 158.3 | $ | 446.5 | $ | 675.9 | |||||||
Aerospace & Defense | 40.0 | 45.1 | 143.9 | 173.4 | |||||||||||
Total orders | $ | 137.9 | $ | 203.4 | $ | 590.4 | $ | 849.3 | |||||||
BACKLOG (2) | December 31, 2015 | December 31, 2014 | |||||||||||||
Energy | $ | 176.8 | $ | 252.1 | |||||||||||
Aerospace & Defense | 92.2 | 108.8 | |||||||||||||
Total backlog | $ | 269.0 | $ | 361.0 | |||||||||||
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 unshipped customer orders. | |||||||||||||||
7
CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except earnings per share and percentages) UNAUDITED | ||||||||||||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | |||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||||||
Energy | $ | 162,587 | $ | 160,580 | $ | 157,658 | $ | 172,432 | $ | 653,257 | $ | 127,586 | $ | 127,230 | $ | 122,905 | $ | 124,412 | $ | 502,133 | ||||||||||
Aerospace & Defense | 48,599 | 47,304 | 46,160 | 46,126 | 188,189 | 38,274 | 39,676 | 36,353 | 39,832 | 154,134 | ||||||||||||||||||||
Total | $ | 211,186 | $ | 207,884 | $ | 203,818 | $ | 218,558 | $ | 841,446 | $ | 165,860 | $ | 166,906 | $ | 159,258 | $ | 164,243 | $ | 656,267 | ||||||||||
ADJUSTED OPERATING MARGIN | ||||||||||||||||||||||||||||||
Energy | 13.8 | % | 14.6 | % | 16.9 | % | 14.3 | % | 14.9 | % | 13.8 | % | 13.4 | % | 15.4 | % | 13.4 | % | 14.0 | % | ||||||||||
Aerospace & Defense | 9.1 | % | 7.1 | % | 5.0 | % | 5.3 | % | 6.6 | % | 8.0 | % | 8.8 | % | 9.1 | % | 10.4 | % | 9.1 | % | ||||||||||
Segment operating margin | 12.7 | % | 12.9 | % | 14.2 | % | 12.4 | % | 13.0 | % | 12.4 | % | 12.3 | % | 14.0 | % | 12.7 | % | 12.8 | % | ||||||||||
Corporate expenses | (3.4 | )% | (2.2 | )% | (2.8 | )% | (2.7 | )% | (2.8 | )% | (3.6 | )% | (3.3 | )% | (3.8 | )% | (2.5 | )% | (3.3 | )% | ||||||||||
Adjusted operating margin | 9.4 | % | 10.7 | % | 11.4 | % | 9.6 | % | 10.2 | % | 8.8 | % | 9.0 | % | 10.1 | % | 10.2 | % | 9.5 | % | ||||||||||
Restructuring related inventory charges | — | % | 2.5 | % | 1.4 | % | — | % | 0.9 | % | — | % | 1.2 | % | 4.0 | % | 0.6 | % | 1.4 | % | ||||||||||
Impairment charges | — | % | — | % | — | % | 0.3 | % | 0.1 | % | — | % | — | % | 1.6 | % | — | % | 0.4 | % | ||||||||||
Special restructuring charges, net | 0.4 | % | 0.6 | % | 0.2 | % | 1.2 | % | 0.6 | % | 0.9 | % | 1.9 | % | 0.2 | % | (0.2 | )% | 0.7 | % | ||||||||||
Special acquisition amortization | — | % | — | % | — | % | — | % | — | % | — | % | 1.3 | % | 1.6 | % | 1.4 | % | 1.0 | % | ||||||||||
Special other charges, net | (0.9 | )% | — | % | — | % | 4.3 | % | 0.9 | % | — | % | 0.1 | % | 5.0 | % | 1.0 | % | 1.5 | % | ||||||||||
Brazil restatement impact | — | % | — | % | — | % | — | % | — | % | 0.4 | % | 1.5 | % | — | % | — | % | 0.5 | % | ||||||||||
Total GAAP operating margin | 9.9 | % | 7.6 | % | 9.7 | % | 3.7 | % | 7.7 | % | 7.4 | % | 3.0 | % | (2.2 | )% | 7.5 | % | 4.0 | % | ||||||||||
8
CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except earnings per share and percentages) UNAUDITED | ||||||||||||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | |||||||||||||||||||||
ADJUSTED OPERATING INCOME | ||||||||||||||||||||||||||||||
Energy | $ | 22,462 | $ | 23,502 | $ | 26,577 | $ | 24,575 | $ | 97,117 | $ | 17,550 | $ | 17,008 | $ | 18,932 | $ | 16,724 | $ | 70,214 | ||||||||||
Aerospace & Defense | 4,426 | 3,362 | 2,295 | 2,425 | 12,508 | 3,045 | 3,494 | 3,298 | 4,146 | 13,982 | ||||||||||||||||||||
Segment operating income | 26,888 | 26,864 | 28,872 | 27,000 | 109,624 | 20,595 | 20,502 | 22,230 | 20,870 | 84,197 | ||||||||||||||||||||
Corporate expenses | (7,137 | ) | (4,634 | ) | (5,678 | ) | (5,965 | ) | (23,415 | ) | (6,034 | ) | (5,477 | ) | (6,078 | ) | (4,122 | ) | (21,710 | ) | ||||||||||
Adjusted operating income | 19,750 | 22,231 | 23,194 | 21,035 | 86,209 | 14,561 | 15,025 | 16,152 | 16,748 | 62,487 | ||||||||||||||||||||
Restructuring related inventory charges | — | 5,139 | 2,850 | — | 7,989 | — | 2,005 | 6,412 | 974 | 9,391 | ||||||||||||||||||||
Impairment charges | — | — | — | 726 | 726 | — | — | 2,502 | — | 2,502 | ||||||||||||||||||||
Special restructuring charges, net | 786 | 1,257 | 478 | 2,725 | 5,246 | 1,512 | 3,127 | 342 | (347 | ) | 4,634 | |||||||||||||||||||
Special acquisition amortization | — | — | — | — | — | — | 2,110 | 2,490 | 2,238 | 6,838 | ||||||||||||||||||||
Special other charges, net | (1,943 | ) | — | — | 9,434 | 7,491 | (1 | ) | 183 | 7,935 | 1,603 | 9,720 | ||||||||||||||||||
Brazil restatement impact | — | — | — | — | — | 719 | 2,509 | — | — | 3,228 | ||||||||||||||||||||
Total GAAP operating income (loss) | 20,907 | 15,834 | 19,866 | 8,150 | 64,756 | 12,331 | 5,090 | (3,529 | ) | 12,281 | 26,174 | |||||||||||||||||||
INTEREST EXPENSE, NET | (918 | ) | (891 | ) | (436 | ) | (407 | ) | (2,652 | ) | (640 | ) | (805 | ) | (828 | ) | (570 | ) | (2,844 | ) | ||||||||||
OTHER INCOME (EXPENSE), NET | 468 | 384 | (419 | ) | 722 | 1,156 | 506 | 104 | 587 | (2,099 | ) | (902 | ) | |||||||||||||||||
PRETAX INCOME (LOSS) | 20,457 | 15,328 | 19,012 | 8,465 | 63,261 | 12,197 | 4,389 | (3,770 | ) | 9,612 | 22,428 | |||||||||||||||||||
(PROVISION FOR) BENEFIT FROM INCOME TAXES | (5,825 | ) | (3,402 | ) | (4,337 | ) | 690 | (12,875 | ) | (3,284 | ) | (2,517 | ) | (4,308 | ) | (2,456 | ) | (12,565 | ) | |||||||||||
EFFECTIVE TAX RATE | 28.5 | % | 22.2 | % | 22.8 | % | (8.2 | )% | 20.4 | % | 26.9 | % | 57.3 | % | (114.3 | )% | 25.6 | % | 56.0 | % | ||||||||||
NET INCOME (LOSS) | $ | 14,632 | $ | 11,926 | $ | 14,675 | $ | 9,155 | $ | 50,386 | $ | 8,913 | $ | 1,872 | $ | (8,078 | ) | $ | 7,156 | $ | 9,863 | |||||||||
Weighted Average Common Shares Outstanding (Diluted) | 17,741 | 17,767 | 17,779 | 17,782 | 17,768 | 17,712 | 16,900 | 16,485 | 16,555 | 16,913 | ||||||||||||||||||||
EARNINGS (LOSS) PER COMMON SHARE (Diluted) | $ | 0.82 | $ | 0.67 | $ | 0.83 | $ | 0.51 | $ | 2.84 | $ | 0.50 | $ | 0.11 | $ | (0.49 | ) | $ | 0.43 | $ | 0.58 | |||||||||
9
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share and percentages) UNAUDITED | ||||||||||||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | |||||||||||||||||||||
FREE CASH FLOW AS % OF NET INCOME (LOSS) | 98 | % | 62 | % | 96 | % | 243 | % | 115 | % | (207 | )% | 239 | % | (27 | )% | 397 | % | 169 | % | ||||||||||
FREE CASH FLOW | $ | 14,387 | $ | 7,365 | $ | 14,015 | $ | 22,249 | $ | 58,016 | $ | (18,415 | ) | $ | 4,483 | $ | 2,169 | $ | 28,403 | $ | 16,640 | |||||||||
ADD: | ||||||||||||||||||||||||||||||
Capital expenditures, net of sale proceeds | 2,670 | 2,933 | 3,297 | 3,910 | 12,810 | 1,983 | 3,584 | 2,837 | 2,098 | 10,502 | ||||||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 17,057 | $ | 10,298 | $ | 17,312 | $ | 26,159 | $ | 70,826 | $ | (16,432 | ) | $ | 8,067 | $ | 5,006 | $ | 30,501 | $ | 27,142 | |||||||||
NET (CASH) DEBT | $ | (66,056 | ) | $ | (72,982 | ) | $ | (80,829 | ) | $ | (107,688 | ) | $ | (107,688 | ) | $ | (66,337 | ) | $ | 59,051 | $ | 57,277 | $ | 35,959 | $ | 35,959 | ||||
ADD: | ||||||||||||||||||||||||||||||
Cash and cash equivalents | 122,189 | 116,421 | 114,671 | 121,372 | 121,372 | 103,883 | 55,027 | 53,822 | 54,541 | 54,541 | ||||||||||||||||||||
TOTAL DEBT | $ | 56,133 | $ | 43,439 | $ | 33,842 | $ | 13,684 | $ | 13,684 | $ | 37,546 | $ | 114,078 | $ | 111,099 | $ | 90,500 | $ | 90,500 | ||||||||||
TOTAL SHAREHOLDERS' EQUITY | $ | 492,601 | $ | 507,363 | $ | 508,035 | $ | 494,093 | $ | 494,093 | $ | 462,384 | $ | 421,070 | $ | 407,979 | $ | 400,777 | $ | 400,777 | ||||||||||
DEBT AS % OF EQUITY | 11 | % | 9 | % | 7 | % | 3 | % | 3 | % | 8 | % | 27 | % | 27 | % | 23 | % | 23 | % | ||||||||||
10
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share and percentages) UNAUDITED | ||||||||||||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | |||||||||||||||||||||
ADJUSTED NET INCOME | $ | 13,916 | $ | 16,090 | $ | 16,827 | $ | 19,188 | $ | 66,019 | $ | 10,564 | $ | 9,357 | $ | 10,635 | $ | 10,512 | $ | 41,068 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Restructuring related inventory charges, net of tax | — | 3,316 | 1,839 | — | 5,155 | — | 1,339 | 6,412 | 799 | 8,550 | ||||||||||||||||||||
Impairment charges, net of tax | — | — | — | 726 | 726 | — | — | 2,502 | — | 2,502 | ||||||||||||||||||||
Special restructuring charges, net of tax | 508 | 848 | 313 | 1,763 | 3,432 | 1,079 | 2,175 | 304 | (561 | ) | 2,997 | |||||||||||||||||||
Special acquisition amortization, net of tax | — | — | — | — | — | — | 1,409 | 1,587 | 1,695 | 4,691 | ||||||||||||||||||||
Special other net charges, net of tax | (1,224 | ) | — | — | 7,544 | 6,320 | (147 | ) | 53 | 7,908 | 1,423 | 9,237 | ||||||||||||||||||
Brazil restatement impact | — | — | — | — | — | 719 | 2,509 | — | — | 3,228 | ||||||||||||||||||||
NET INCOME (LOSS) | $ | 14,632 | $ | 11,926 | $ | 14,675 | $ | 9,155 | $ | 50,386 | $ | 8,913 | $ | 1,872 | $ | (8,078 | ) | $ | 7,156 | $ | 9,863 | |||||||||
ADJUSTED EARNINGS PER SHARE (Diluted) | $ | 0.78 | $ | 0.91 | $ | 0.95 | $ | 1.08 | $ | 3.72 | $ | 0.60 | $ | 0.55 | $ | 0.64 | $ | 0.63 | $ | 2.43 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Restructuring related inventory charges, net of tax | — | 0.19 | 0.10 | — | 0.29 | — | 0.08 | 0.39 | 0.05 | 0.51 | ||||||||||||||||||||
Impairment charges, net of tax | — | — | — | 0.04 | 0.04 | — | — | 0.15 | — | 0.15 | ||||||||||||||||||||
Special restructuring charges, net of tax | 0.03 | 0.05 | 0.02 | 0.10 | 0.20 | 0.06 | 0.13 | 0.02 | (0.03 | ) | 0.18 | |||||||||||||||||||
Special acquisition amortization, net of tax | — | — | — | — | — | — | 0.08 | 0.10 | 0.10 | 0.28 | ||||||||||||||||||||
Special other net charges, net of tax | (0.07 | ) | — | — | 0.42 | 0.35 | — | — | 0.47 | 0.08 | 0.54 | |||||||||||||||||||
Brazil restatement impact | — | — | — | — | — | 0.04 | 0.15 | — | — | 0.19 | ||||||||||||||||||||
EARNINGS (LOSS) PER COMMON SHARE (Diluted) | $ | 0.82 | $ | 0.67 | $ | 0.83 | $ | 0.51 | $ | 2.84 | $ | 0.50 | $ | 0.11 | $ | (0.49 | ) | $ | 0.43 | $ | 0.58 | |||||||||
11
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share and percentages) UNAUDITED | ||||||||||||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | |||||||||||||||||||||
ADJUSTED EBITDA | $ | 25,073 | $ | 27,536 | $ | 27,530 | $ | 26,789 | $ | 106,927 | $ | 19,299 | $ | 19,474 | $ | 20,980 | $ | 18,927 | $ | 78,681 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Restructuring related inventory charges | — | (5,139 | ) | (2,850 | ) | — | (7,989 | ) | — | (2,005 | ) | (6,412 | ) | (974 | ) | (9,391 | ) | |||||||||||||
Impairment charges | — | — | — | (726 | ) | (726 | ) | — | — | (2,502 | ) | — | (2,502 | ) | ||||||||||||||||
Special restructuring charges, net | (786 | ) | (1,257 | ) | (478 | ) | (2,725 | ) | (5,246 | ) | (1,512 | ) | (3,127 | ) | (342 | ) | 347 | (4,634 | ) | |||||||||||
Special other charges, net | 1,943 | — | — | (9,434 | ) | (7,491 | ) | 1 | (183 | ) | (7,935 | ) | (1,603 | ) | (9,720 | ) | ||||||||||||||
Brazil restatement impact | — | — | — | — | — | (719 | ) | (2,509 | ) | — | — | (3,228 | ) | |||||||||||||||||
EBITDA | $ | 26,230 | $ | 21,140 | $ | 24,202 | $ | 13,904 | $ | 85,475 | $ | 17,068 | $ | 11,650 | $ | 3,789 | $ | 16,698 | $ | 49,206 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Interest expense, net | (918 | ) | (891 | ) | (436 | ) | (407 | ) | (2,652 | ) | (641 | ) | (805 | ) | (828 | ) | (570 | ) | (2,844 | ) | ||||||||||
Depreciation | (4,069 | ) | (4,116 | ) | (3,978 | ) | (4,283 | ) | (16,446 | ) | (3,521 | ) | (3,629 | ) | (3,526 | ) | (3,578 | ) | (14,254 | ) | ||||||||||
Amortization, including special acquisition | (786 | ) | (805 | ) | (776 | ) | (749 | ) | (3,116 | ) | (710 | ) | (2,827 | ) | (3,205 | ) | (2,939 | ) | (9,681 | ) | ||||||||||
(Provision for) benefit from income taxes | (5,825 | ) | (3,402 | ) | (4,337 | ) | 690 | (12,875 | ) | (3,284 | ) | (2,517 | ) | (4,308 | ) | (2,456 | ) | (12,565 | ) | |||||||||||
NET INCOME (LOSS) | $ | 14,632 | $ | 11,926 | $ | 14,675 | $ | 9,155 | $ | 50,386 | $ | 8,913 | $ | 1,872 | $ | (8,078 | ) | $ | 7,156 | $ | 9,863 | |||||||||
12
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except per share data) UNAUDITED | ||||||||||||||||
2014 | ||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | ||||||||||||
NET REVENUES EXCLUDING DIVESTITURES | $ | 198,204 | $ | 194,349 | $ | 189,705 | $ | 207,970 | $ | 790,228 | ||||||
ADD: | ||||||||||||||||
Energy divestiture | 10,554 | 10,037 | 10,667 | 8,465 | 39,723 | |||||||||||
Aerospace & Defense divestiture | 2,428 | 3,498 | 3,446 | 2,123 | 11,495 | |||||||||||
NET REVENUES | $ | 211,186 | $ | 207,884 | $ | 203,818 | $ | 218,558 | $ | 841,446 | ||||||
ADJUSTED EARNINGS PER SHARE EXCLUDING DIVESTITURES (Diluted) | 0.79 | 0.88 | 0.89 | 1.05 | 3.61 | |||||||||||
ADD: | ||||||||||||||||
Divestitures | (0.01 | ) | 0.03 | 0.06 | 0.03 | 0.11 | ||||||||||
ADJUSTED EARNINGS PER SHARE (Diluted) | $ | 0.78 | $ | 0.91 | $ | 0.95 | $ | 1.08 | $ | 3.72 | ||||||
13