CIRCOR International, Inc. (NYSE: CIR), a leading provider of flow control solutions and other highly engineered products for the Industrial, Energy and Aerospace & Defense markets, today announced financial results for the fourth quarter and full year ended December 31, 2018. Results include the acquisition of the Colfax Fluid Handling business, which CIRCOR acquired in December 2017.
Fourth-Quarter 2018 Highlights
- Orders of $297 million, up 37% on a reported basis and up 2% on a pro forma organic basis
- Revenue of $301 million, up 47% on a reported basis and up 4% on a pro forma organic basis
- GAAP Operating Margin of 2.1%, up 460 bps
- Adjusted Operating Margin of 9.1%, up 320 bps on a pro forma basis
- GAAP Loss per Share of ($1.06); Adjusted Earnings per Share of $0.62
- Operating Cash Flow of $26 million
- Debt pay down of $25 million
“2018 was a transformational year for CIRCOR as our team integrated the largest deal in the Company’s history,” said Scott Buckhout, President and Chief Executive Officer. “As we begin the second year of integration, our synergy plan is ahead of schedule, with committed run-rate cost synergies now expected by the end of year three.
“We ended the year with solid fourth-quarter results, including strong organic growth and robust margin expansion,” said Buckhout. “In addition, we executed well on our cash management actions, reducing working capital to 24% of sales and generating $26 million of operating cash flow.
“De-levering the Company remains a top priority. We reduced our debt by $25 million in the fourth quarter,” added Buckhout. “As previously announced, in January we sold our non-core Reliability Services business for $85 million and used the net proceeds to pay down debt. We continue to evaluate the sale of other non-core businesses to further accelerate the reduction of our outstanding debt.
“We remain optimistic about the outlook across the majority of our end markets. Going forward, we will continue to focus on creating long-term value for shareholders by investing in growth, expanding margins, generating strong free cash flow, and de-levering the Company,” concluded Buckhout.
First-Quarter 2019 Guidance
For the first quarter of 2019,
CIRCOR expects revenue in the range of $245 million to $260 million, and
GAAP loss per share in the range of $(0.15) to $(0.01), which reflects
acquisition-related amortization expense of $(0.50) to $(0.52) and other
special and restructuring (charges) gains of $0.05 to $0.07, which
includes an expected gain on the sale of Reliability Services, offset by
restructuring and special charges. Excluding the impact of amortization,
special and restructuring (charges) gains, adjusted EPS is expected to
be in the range of $0.32 to $0.42 per share. Presentation slides that
provide supporting information to this guidance and fourth-quarter and
year-end results are posted on the “Investors” section of the Company’s
website, http://investors.circor.com,
and will be discussed during the conference call at 9:00 a.m. ET
tomorrow, February 27, 2019.
Selected Consolidated Results (unaudited) | |||||||||||||||||||||||||
| ($ millions except EPS) | Q4 2018 | Q4 2017 | Change | FY 2018 | FY 2017 | Change | |||||||||||||||||||
| Revenue | $ | 301.4 | $ | 205.6 | 47% | $ | 1,175.8 | $ | 661.7 | 78% | |||||||||||||||
| GAAP Operating Income (Loss) | $ | 6.3 | $ | (5.1) | n/m | $ | 9.4 | $ | 20.6 | (54)% | |||||||||||||||
| Adjusted Operating Income1 | $ | 27.5 | $ | 18.7 | 47% | $ | 96.6 | $ | 51.7 | 87% | |||||||||||||||
| GAAP Operating Margin | 2.1% | (2.5)% | 460 bps | 0.8% | 3.1% | (230) bps | |||||||||||||||||||
| Adjusted Operating Margin1 | 9.1% | 9.1% | 0 bps | 8.2% | 7.8% | 40 bps | |||||||||||||||||||
| GAAP (Loss) Earnings Per Share | $ | (1.06) | $ | (0.32) | (232)% | $ | (1.99) | $ | 0.70 | n/m | |||||||||||||||
| Adjusted Earnings Per Share1 (Diluted)1 | $ | 0.62 | $ | 0.57 | 9% | $ | 2.11 | $ | 1.71 | 23% | |||||||||||||||
| Operating Cash Flow | $ | 26.3 | $ | 7.6 | 246% | $ | 49.8 | $ | 9.6 | 419% | |||||||||||||||
| Free Cash Flow2 | $ | 19.8 | $ | 1.5 | n/m | $ | 26.4 | $ | (4.0) | n/m | |||||||||||||||
| Orders | $ | 296.6 | $ | 216.5 | 37% | $ | 1,239.5 | $ | 701.6 | 77% | |||||||||||||||
Segment Results | |||||||||||||||||||||||||
| ($ millions) | Q4 2018 | Q4 2017 | Change | FY 2018 | FY 2017 | Change | |||||||||||||||||||
| Industrial | |||||||||||||||||||||||||
| Revenue | $ | 120.6 | $ | 52.1 | 131% | $ | 487.4 | $ | 139.1 | 250% | |||||||||||||||
| Segment Operating Income | $ | 14.7 | $ | 5.0 | 194% | $ | 57.3 | $ | 19.9 | 188% | |||||||||||||||
| Segment Operating Margin | 12.2% | 9.6% | 260 bps | 11.8% | 14.3% | (250) bps | |||||||||||||||||||
| Orders | $ | 121.9 | $ | 47.2 | 158% | $ | 510.1 | $ | 132.0 | 286% | |||||||||||||||
| Energy | |||||||||||||||||||||||||
| Revenue | $ | 117.4 | $ | 96.6 | 22% | $ | 451.2 | $ | 339.6 | 33% | |||||||||||||||
| Segment Operating Income | $ | 9.4 | $ | 8.6 | 9% | $ | 33.5 | $ | 30.1 | 11% | |||||||||||||||
| Segment Operating Margin | 8.0% | 8.9% | (90) bps | 7.4% | 8.9% | (150) bps | |||||||||||||||||||
| Orders | $ | 98.0 | $ | 118.0 | (17)% | $ | 451.9 | $ | 376.0 | 20% | |||||||||||||||
| Aerospace & Defense | |||||||||||||||||||||||||
| Revenue | $ | 63.3 | $ | 57.0 | 11% | $ | 237.0 | $ | 183.0 | 30% | |||||||||||||||
| Segment Operating Income | $ | 11.4 | $ | 10.9 | 5% | $ | 36.0 | $ | 23.4 | 54% | |||||||||||||||
| Segment Operating Margin | 18.0% | 19.1% | (110) bps | 15.2% | 12.8% | 240 bps | |||||||||||||||||||
| Orders | $ | 76.7 | $ | 51.3 | 50% | $ | 277.5 | $ | 193.5 | 43% | |||||||||||||||
1. | Adjusted Consolidated and Segment Results for Q4 2018 exclude non-cash acquisition-related intangible amortization, special and restructuring charges totaling $21.2 million ($33.4 million, net of tax). These charges include: (i) $13.7 million for non-cash acquisition-related intangible amortization expense and amortization of the step-up in fixed asset values; (ii) $4.4 million related to the sale of businesses; (iii) $3.1 million related to other special and restructuring activities, primarily in Oklahoma City; and (iv) $10.9 million related to the write-off of a deferred tax asset due to changes in US tax law. Consolidated and Segment Results for Q4 2017 exclude special and restructuring charges and non-cash acquisition-related intangible and inventory step-up amortization, totaling $23.7 million ($15.5 million, net of tax). This net charge includes (i) $9.2 million charge for non-cash acquisition-related intangible amortization expense, including the amortization of a step-up in fair value of inventories; (ii) $8.9 million in transaction fees associated with the acquisition of the Colfax Fluid Handling business; (iii) $2.4 million for settlement of a legal matter; (iv) $1.8 million write-off for deferred financing fees associated with the prior debt agreement; and (v) $1.4 million related to previously announced restructuring actions. | |
2. | Free Cash Flow is a non-GAAP financial measure and is calculated by subtracting GAAP capital expenditures, net of proceeds from asset sales, from GAAP Operating Cash Flow. | |
Conference Call Information
CIRCOR International will hold a
conference call to review its financial results at 9:00 a.m. ET
tomorrow, February 27, 2019. To listen to the live conference call and
view the accompanying presentation slides, please visit “Webcasts &
Presentations” in the “Investors” portion of CIRCOR’s website. The live
call also can be accessed by dialing (877) 407-5790 or (201) 689-8328.
The webcast will be archived on the Company’s website for one year.
Use of Non-GAAP Financial Measures
Adjusted operating
income, Adjusted operating margin, Adjusted net income, Adjusted
earnings per share (diluted), EBITDA, Adjusted EBITDA, net debt, free
cash flow, organic growth, pro forma combined amounts and pro forma
organic growth are non-GAAP financial measures. These non-GAAP financial
measures are used by management in our financial and operating decision
making because we believe they reflect our ongoing business and
facilitate period-to-period comparisons. We believe these non-GAAP
financial measures provide useful information to investors and others in
understanding and evaluating the Company’s current operating performance
and future prospects in the same manner as management does, if they so
choose. These non-GAAP financial measures also allow investors and
others to compare the Company’s current financial results with the
Company’s past financial results in a consistent manner.
For
example:
- We exclude costs and tax effects associated with restructuring activities, such as reducing overhead and consolidating facilities. We believe that the costs related to these restructuring activities are not indicative of our normal operating costs.
- We exclude certain acquisition-related costs, including significant transaction costs and amortization of inventory and fixed-asset step-ups and the related tax effects. We exclude these costs because we do not believe they are indicative of our normal operating costs.
- We exclude the expense and tax effects associated with the non-cash amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives up to 25 years. Exclusion of the non-cash amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.
- We also exclude certain gains/losses and related tax effects, which are either isolated or cannot be expected to occur again with any predictability, and that we believe are not indicative of our normal operating gains and losses. For example, we exclude gains/losses from items such as the sale of a business, significant litigation-related matters and lump-sum pension plan settlements.
- Due to the significance of the Fluid Handling acquisition and to provide a more meaningful comparison of changes in our orders and revenue, we also discuss these changes on a “pro forma organic” basis. Pro forma organic is calculated assuming the Fluid Handling acquisition was completed on January 1, 2017 and excluding the impact of changes in foreign currency exchange rates.
CIRCOR’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company’s operating performance and comparing such performance to that of prior periods and to the performance of our competitors. We use such measures when publicly providing our business outlook, assessing future earnings potential, evaluating potential acquisitions and dispositions and in our financial and operating decision-making process, including for compensation purposes.
Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with accounting principles generally accepted in the United States. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is included in this news release.
Safe Harbor Statement
This press release contains
forward-looking statements within the meaning of Section 27 A of the
Securities Act of 1933, as amended, and Section 21 E 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 first-quarter 2019
guidance, our future performance, including realization of cost
reductions from restructuring activities and expected synergies, and our
corporate priorities. Actual events, performance or results could differ
materially from the anticipated events, performance or results expressed
or implied by such forward-looking statements. Important factors that
could cause actual results to vary from expectations include, but are
not limited to: our ability to respond to competitive developments and
to grow our business, both domestically and internationally; changes in
the cost, quality or supply of raw materials; our ability to comply with
our debt obligations; our ability to successfully implement our
acquisition, divesture or restructuring strategies, including our
integration of the Fluid Handling business; changes in industry
standards, trade policies or government regulations, both in the United
States and internationally; and our ability to operate our manufacturing
facilities at current or higher levels and respond to increases in
manufacturing costs. 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 differentiated technology products and
sub-systems for markets including oil & gas, industrial, aerospace &
defense and commercial marine. CIRCOR has a diversified flow and motion
control product portfolio with recognized, market-leading brands that
fulfill its customers’ mission critical 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 talent. For more information, visit the Company’s
investor relations website at http://investors.circor.com.
CIRCOR INTERNATIONAL, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME | ||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||
| Net revenues | $ | 301,363 | $ | 205,578 | $ | 1,175,825 | $ | 661,710 | ||||||||||||
| Cost of revenues | 209,345 | 146,362 | 834,175 | 460,890 | ||||||||||||||||
| GROSS PROFIT | 92,018 | 59,216 | 341,650 | 200,820 | ||||||||||||||||
| Selling, general and administrative expenses | 79,085 | 49,776 | 308,427 | 166,201 | ||||||||||||||||
| Special and restructuring charges (recoveries), net | 6,637 | 14,495 | 23,839 | 14,051 | ||||||||||||||||
| OPERATING INCOME | 6,296 | (5,055 | ) | 9,384 | 20,568 | |||||||||||||||
| Other expense (income): | ||||||||||||||||||||
| Interest expense, net | 13,257 | 4,479 | 52,913 | 10,777 | ||||||||||||||||
| Other (income) expense, net | (234 | ) | 1,655 | (7,435 | ) | 3,678 | ||||||||||||||
| TOTAL OTHER EXPENSE, NET | 13,023 | 6,134 | 45,478 | 14,455 | ||||||||||||||||
| (LOSS) INCOME BEFORE INCOME TAXES | (6,727 | ) | (11,189 | ) | (36,094 | ) | 6,113 | |||||||||||||
| Provision for (benefit from) income taxes | 14,278 | (5,619 | ) | 3,290 | (5,676 | ) | ||||||||||||||
| NET (LOSS) INCOME | $ | (21,005 | ) | $ | (5,570 | ) | $ | (39,384 | ) | $ | 11,789 | |||||||||
| (Loss) Earnings per common share: | ||||||||||||||||||||
| Basic | $ | (1.06 | ) | $ | (0.32 | ) | $ | (1.99 | ) | $ | 0.71 | |||||||||
| Diluted | $ | (1.06 | ) | $ | (0.32 | ) | $ | (1.99 | ) | $ | 0.70 | |||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||||||
| Basic | 19,848 | 17,233 | 19,834 | 16,674 | ||||||||||||||||
| Diluted | 19,848 | 17,233 | 19,834 | 16,849 | ||||||||||||||||
| Dividends declared per common share | $ | — | $ | 0.0375 | $ | — | $ | 0.1500 | ||||||||||||
CIRCOR INTERNATIONAL, INC. | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in thousands) | |||||||||||
(UNAUDITED) | |||||||||||
| Twelve Months Ended | |||||||||||
| OPERATING ACTIVITIES | December 31, | December 31, | |||||||||
| Net (loss) income | $ | (39,384 | ) | $ | 11,789 | ||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
| Depreciation | 28,754 | 15,290 | |||||||||
| Amortization | 49,255 | 14,747 | |||||||||
| Bad debt expense | 2,141 | 810 | |||||||||
| Loss on write down of inventory | 6,987 | 3,037 | |||||||||
| Amortization of inventory fair value step-up | 6,600 | 4,300 | |||||||||
| Compensation expense of share-based plans | 4,971 | 3,807 | |||||||||
| Change in fair value of contingent consideration | — | (12,200 | ) | ||||||||
Debt extinguishment and amortization of debt issuance costs | 3,823 | 2,569 | |||||||||
| Loss on sale or write down of property, plant and equipment | 1,316 | 360 | |||||||||
| Loss on sale of business | 1,882 | 5,300 | |||||||||
| Changes in operating assets and liabilities, net of effects of acquisition and disposition: | |||||||||||
| Trade accounts receivable | 35,250 | (5,734 | ) | ||||||||
| Inventories | 11,356 | (19,494 | ) | ||||||||
| Prepaid expenses and other assets | (70,749 | ) | (8,578 | ) | |||||||
| Accounts payable, accrued expenses and other liabilities | 7,551 | (6,366 | ) | ||||||||
| Net cash provided by operating activities | 49,753 | 9,637 | |||||||||
| INVESTING ACTIVITIES | |||||||||||
| Additions to property, plant and equipment | (23,588 | ) | (14,541 | ) | |||||||
| Proceeds from the sale of property, plant and equipment | 231 | 934 | |||||||||
| Proceeds from the sale of affiliate | 2,753 | — | |||||||||
| Business acquisition, working capital adjustment | 6,300 | (488,517 | ) | ||||||||
| Net cash used in investing activities | (14,304 | ) | (502,124 | ) | |||||||
| FINANCING ACTIVITIES | |||||||||||
| Proceeds from long-term debt | 248,300 | 1,090,883 | |||||||||
| Payments of long-term debt | (260,146 | ) | (523,183 | ) | |||||||
| Debt issuance costs | — | (30,366 | ) | ||||||||
| Dividends paid | — | (2,506 | ) | ||||||||
| Proceeds from the exercise of stock options | 690 | 740 | |||||||||
| Return of cash to seller | (61,201 | ) | — | ||||||||
| Net cash (used in) provided by financing activities | (72,357 | ) | 535,568 | ||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5,860 | ) | 8,996 | ||||||||
| (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (42,768 | ) | 52,077 | ||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 112,293 | 58,279 | |||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ | 69,525 | $ | 110,356 | |||||||
CIRCOR INTERNATIONAL, INC. | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(in thousands, except share and per share data) | |||||||||||
(UNAUDITED) | |||||||||||
| December 31, 2018 | December 31, 2017 | ||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 68,517 | $ | 110,356 | |||||||
| Trade accounts receivable, less allowance for doubtful accounts of $6,965 and $4,791, respectively | 183,552 | 223,922 | |||||||||
| Inventories | 217,378 | 244,896 | |||||||||
| Prepaid expenses and other current assets | 90,658 | 58,353 | |||||||||
| Assets held for sale | 46,898 | 866 | |||||||||
| Total Current Assets | 607,003 | 638,393 | |||||||||
| PROPERTY, PLANT AND EQUIPMENT, NET | 201,799 | 217,539 | |||||||||
| OTHER ASSETS: | |||||||||||
| Goodwill | 501,892 | 505,762 | |||||||||
| Intangibles, net | 441,973 | 513,364 | |||||||||
| Deferred income taxes | 29,478 | 22,334 | |||||||||
| Other assets | 12,797 | 9,407 | |||||||||
| TOTAL ASSETS | $ | 1,794,942 | $ | 1,906,799 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| CURRENT LIABILITIES: | |||||||||||
| Accounts payable | $ | 123,881 | $ | 117,329 | |||||||
| Accrued expenses and other current liabilities | 115,162 | 170,454 | |||||||||
| Accrued compensation and benefits | 33,878 | 34,734 | |||||||||
| Liabilities held for sale | 11,141 | — | |||||||||
| Total Current Liabilities | 284,062 | 322,517 | |||||||||
| LONG-TERM DEBT, NET | 778,187 | 787,343 | |||||||||
| DEFERRED INCOME TAXES | 33,931 | 26,122 | |||||||||
| PENSION LIABILITY, NET | 146,522 | 150,719 | |||||||||
| OTHER NON-CURRENT LIABILITIES | 19,917 | 18,124 | |||||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||||
| SHAREHOLDERS’ EQUITY: | |||||||||||
| Common stock | 212 | 212 | |||||||||
| Additional paid-in capital | 444,673 | 438,721 | |||||||||
| Retained earnings | 232,100 | 274,243 | |||||||||
| Common treasury stock, at cost | (74,472 | ) | (74,472 | ) | |||||||
| Accumulated other comprehensive loss, net of tax | (70,190 | ) | (36,730 | ) | |||||||
| Total Shareholders’ Equity | 532,323 | 601,974 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,794,942 | $ | 1,906,799 | |||||||
CIRCOR INTERNATIONAL, INC. | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||
| ORDERS (1) (3) | ||||||||||||||||||||
| Energy | $ | 98.0 | $ | 118.0 | $ | 451.9 | $ | 376.0 | ||||||||||||
| Aerospace & Defense | 76.7 | 51.3 | 277.5 | 193.5 | ||||||||||||||||
| Industrial | 121.9 | 47.2 | 510.1 | 132.0 | ||||||||||||||||
| Total orders | $ | 296.6 | $ | 216.5 | $ | 1,239.5 | $ | 701.5 | ||||||||||||
| BACKLOG (2) (3) | December 31, | December 31, | ||||||||||||||||||
| Energy | $ | 183.5 | $ | 183.0 | ||||||||||||||||
| Aerospace & Defense | 179.6 | 163.7 | ||||||||||||||||||
| Industrial | 163.8 | 155.8 | ||||||||||||||||||
| Total backlog | $ | 526.9 | $ | 502.5 | ||||||||||||||||
| 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 represents unshipped customer orders for which revenue has not been recognized. |
Note 3: 2018 backlog reflects adjustments related to the cumulative impact of changes in revenue recognition due to the Company's adoption of ASC 606. December 31, 2017 amounts restated for Q1 2018 organizational realignment. |
CIRCOR INTERNATIONAL, INC. | |||||||||||||||||||||||||||||||||||||||||
| 2017 | 2018 | ||||||||||||||||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | ||||||||||||||||||||||||||||||||
| ORDERS | |||||||||||||||||||||||||||||||||||||||||
| Energy | $ | 100,012 | $ | 73,140 | $ | 84,857 | $ | 118,030 | $ | 376,039 | $ | 129,762 | $ | 113,171 | $ | 110,987 | $ | 97,990 | $ | 451,910 | |||||||||||||||||||||
| Aerospace & Defense | 56,416 | 39,902 | 45,939 | 51,278 | 193,535 | 59,793 | 59,441 | 81,533 | 76,702 | 277,469 | |||||||||||||||||||||||||||||||
| Industrial | 27,654 | 29,889 | 27,296 | 47,154 | 131,993 | 136,607 | 136,746 | 114,876 | 121,886 | 510,115 | |||||||||||||||||||||||||||||||
| Total | $ | 184,082 | $ | 142,931 | $ | 158,092 | $ | 216,462 | $ | 701,567 | $ | 326,162 | $ | 309,358 | $ | 307,396 | $ | 296,578 | $ | 1,239,494 | |||||||||||||||||||||
| NET REVENUES | |||||||||||||||||||||||||||||||||||||||||
| Energy | $ | 76,210 | $ | 78,276 | $ | 88,570 | $ | 96,561 | $ | 339,617 | $ | 99,972 | $ | 112,804 | $ | 121,023 | $ | 117,433 | $ | 451,232 | |||||||||||||||||||||
| Aerospace & Defense | 41,601 | 43,304 | 41,117 | 56,961 | 182,983 | 58,477 | 57,500 | 57,757 | 63,283 | 237,017 | |||||||||||||||||||||||||||||||
| Industrial | 27,397 | 29,651 | 30,006 | 52,056 | 139,110 | 117,131 | 131,064 | 118,734 | 120,647 | 487,576 | |||||||||||||||||||||||||||||||
| Total | $ | 145,208 | $ | 151,231 | $ | 159,693 | $ | 205,578 | $ | 661,710 | $ | 275,580 | $ | 301,368 | $ | 297,514 | $ | 301,363 | $ | 1,175,825 | |||||||||||||||||||||
| SEGMENT OPERATING INCOME | |||||||||||||||||||||||||||||||||||||||||
| Energy | $ | 6,407 | $ | 8,170 | $ | 6,936 | $ | 8,618 | $ | 30,131 | $ | 5,696 | $ | 9,242 | $ | 9,163 | $ | 9,396 | $ | 33,497 | |||||||||||||||||||||
| Aerospace & Defense | 3,784 | 4,374 | 4,333 | 10,884 | 23,375 | 8,931 | 6,992 | 8,709 | 11,415 | 36,047 | |||||||||||||||||||||||||||||||
| Industrial | 4,384 | 4,901 | 5,675 | 4,972 | 19,932 | 12,948 | 15,037 | 14,609 | 14,746 | 57,340 | |||||||||||||||||||||||||||||||
| Corporate expenses | (5,479 | ) | (5,396 | ) | (5,067 | ) | (5,802 | ) | (21,744 | ) | (7,802 | ) | (6,448 | ) | (8,034 | ) | (8,015 | ) | (30,299 | ) | |||||||||||||||||||||
| Adjusted Operating Income | $ | 9,096 | $ | 12,049 | $ | 11,877 | $ | 18,672 | $ | 51,694 | $ | 19,773 | $ | 24,823 | $ | 24,447 | $ | 27,542 | $ | 96,585 | |||||||||||||||||||||
| SEGMENT OPERATING MARGIN % | |||||||||||||||||||||||||||||||||||||||||
| Energy | 8.4 | % | 10.4 | % | 7.8 | % | 8.9 | % | 8.9 | % | 5.7 | % | 8.2 | % | 7.6 | % | 8.0 | % | 7.4 | % | |||||||||||||||||||||
| Aerospace & Defense | 9.1 | % | 10.1 | % | 10.5 | % | 19.1 | % | 12.8 | % | 15.3 | % | 12.2 | % | 15.1 | % | 18.0 | % | 15.2 | % | |||||||||||||||||||||
| Industrial | 16.0 | % | 16.5 | % | 18.9 | % | 9.6 | % | 14.3 | % | 11.1 | % | 11.5 | % | 12.3 | % | 12.2 | % | 11.8 | % | |||||||||||||||||||||
| Adjusted Operating Margin | 6.3 | % | 8.0 | % | 7.4 | % | 9.1 | % | 7.8 | % | 7.2 | % | 8.2 | % | 8.2 | % | 9.1 | % | 8.2 | % | |||||||||||||||||||||
CIRCOR INTERNATIONAL, INC. | |||||||||||||||||||||||||||||||||||||||||
| 2017 | 2018 | ||||||||||||||||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | ||||||||||||||||||||||||||||||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 16,195 | $ | 2,667 | $ | (16,854 | ) | $ | 7,629 | $ | 9,637 | $ | (145 | ) | $ | (465 | ) | $ | 24,073 | $ | 26,290 | $ | 49,753 | ||||||||||||||||||
| LESS: | |||||||||||||||||||||||||||||||||||||||||
| Capital expenditures, net of sale proceeds | 2,811 | 2,375 | 2,318 | 6,103 | 13,607 | 8,141 | 3,563 | 5,119 | 6,534 | 23,357 | |||||||||||||||||||||||||||||||
| FREE CASH FLOW | $ | 13,384 | $ | 292 | $ | (19,172 | ) | $ | 1,526 | $ | (3,970 | ) | $ | (8,286 | ) | $ | (4,028 | ) | $ | 18,954 | $ | 19,756 | $ | 26,396 | |||||||||||||||||
| GROSS DEBT | $ | 243,000 | $ | 252,856 | $ | 269,026 | $ | 795,208 | $ | 795,208 | $ | 823,665 | $ | 827,629 | $ | 831,613 | $ | 807,050 | $ | 807,050 | |||||||||||||||||||||
| LESS: | |||||||||||||||||||||||||||||||||||||||||
| Cash & cash equivalents | 65,656 | 77,272 | 75,627 | 110,356 | 110,356 | 123,305 | 69,030 | 71,334 | 68,517 | 68,517 | |||||||||||||||||||||||||||||||
| GROSS DEBT, NET OF CASH | $ | 177,344 | $ | 175,584 | $ | 193,399 | $ | 684,852 | $ | 684,852 | $ | 700,360 | $ | 758,599 | $ | 760,279 | $ | 738,533 | $ | 738,533 | |||||||||||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | $ | 415,537 | $ | 438,097 | $ | 451,885 | $ | 601,974 | $ | 601,974 | $ | 592,096 | $ | 573,992 | $ | 574,171 | $ | 532,323 | $ | 532,323 | |||||||||||||||||||||
| GROSS DEBT AS % OF EQUITY | 58 | % | 58 | % | 60 | % | 132 | % | 132 | % | 139 | % | 144 | % | 145 | % | 152 | % | 152 | % | |||||||||||||||||||||
| GROSS DEBT, NET OF CASH AS % OF EQUITY | 43 | % | 40 | % | 43 | % | 114 | % | 114 | % | 118 | % | 132 | % | 132 | % | 138 | % | 139 | % | |||||||||||||||||||||
CIRCOR INTERNATIONAL, INC. | |||||||||||||||||||||||||||||||||||||||||
| 2017 | 2018 | ||||||||||||||||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | ||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) | $ | 4,773 | $ | 8,970 | $ | 3,617 | $ | (5,571 | ) | $ | 11,789 | $ | (17,441 | ) | $ | 5,902 | $ | (6,841 | ) | $ | (21,005 | ) | $ | (39,385 | ) | ||||||||||||||||
| LESS: | |||||||||||||||||||||||||||||||||||||||||
| Restructuring related inventory charges | — | — | — | — | — | 473 | 1,067 | — | 864 | 2,404 | |||||||||||||||||||||||||||||||
| Amortization of inventory step-up | — | — | — | 4,300 | 4,300 | 6,600 | — | — | — | 6,600 | |||||||||||||||||||||||||||||||
| Restructuring charges, net | 1,458 | 3,566 | 341 | 697 | 6,062 | 9,615 | 844 | 1,348 | 944 | 12,751 | |||||||||||||||||||||||||||||||
| Acquisition amortization | 2,552 | 2,599 | 2,694 | 4,697 | 12,542 | 11,797 | 11,767 | 11,733 | 12,012 | 47,309 | |||||||||||||||||||||||||||||||
| Acquisition depreciation | — | — | — | 233 | 233 | 1,837 | 1,735 | 1,742 | 1,735 | 7,049 | |||||||||||||||||||||||||||||||
| Special (recoveries) charges, net | (2,268 | ) | (5,520 | ) | 1,978 | 13,799 | 7,989 | 2,831 | 1,156 | 1,408 | 5,692 | 11,087 | |||||||||||||||||||||||||||||
| Income tax impact | (1,137 | ) | (3,124 | ) | (1,497 | ) | (8,279 | ) | (14,037 | ) | (7,687 | ) | (11,056 | ) | 967 | 12,124 | (5,652 | ) | |||||||||||||||||||||||
| ADJUSTED NET INCOME | $ | 5,378 | $ | 6,491 | $ | 7,133 | $ | 9,876 | $ | 28,878 | $ | 8,025 | $ | 11,415 | $ | 10,357 | $ | 12,366 | $ | 42,163 | |||||||||||||||||||||
| EARNINGS (LOSS) PER COMMON SHARE (Diluted) | $ | 0.29 | $ | 0.54 | $ | 0.22 | $ | (0.32 | ) | $ | 0.70 | $ | (0.88 | ) | $ | 0.30 | $ | (0.34 | ) | $ | (1.06 | ) | $ | (1.99 | ) | ||||||||||||||||
| LESS: | |||||||||||||||||||||||||||||||||||||||||
| Restructuring related inventory charges | — | — | — | — | — | 0.02 | 0.05 | — | 0.04 | 0.12 | |||||||||||||||||||||||||||||||
| Amortization of inventory step-up | — | — | — | 0.25 | 0.26 | 0.33 | — | — | — | 0.33 | |||||||||||||||||||||||||||||||
| Restructuring charges, net | 0.09 | 0.21 | 0.02 | 0.04 | 0.36 | 0.49 | 0.04 | 0.07 | 0.05 | 0.64 | |||||||||||||||||||||||||||||||
| Acquisition amortization | 0.15 | 0.16 | 0.16 | 0.27 | 0.74 | 0.60 | 0.59 | 0.59 | 0.60 | 2.37 | |||||||||||||||||||||||||||||||
| Acquisition depreciation | — | — | — | 0.01 | 0.01 | 0.09 | 0.09 | 0.09 | 0.09 | 0.35 | |||||||||||||||||||||||||||||||
| Special (recoveries) charges, net | (0.14 | ) | (0.33 | ) | 0.12 | 0.80 | 0.47 | 0.14 | 0.06 | 0.07 | 0.29 | 0.55 | |||||||||||||||||||||||||||||
| Income tax impact | (0.07 | ) | (0.19 | ) | (0.09 | ) | (0.48 | ) | (0.83 | ) | (0.39 | ) | (0.55 | ) | 0.05 | 0.61 | (0.28 | ) | |||||||||||||||||||||||
| ADJUSTED EARNINGS PER SHARE (Diluted) | $ | 0.32 | $ | 0.39 | $ | 0.43 | $ | 0.57 | $ | 1.71 | $ | 0.40 | $ | 0.57 | $ | 0.52 | $ | 0.62 | $ | 2.11 | |||||||||||||||||||||
CIRCOR INTERNATIONAL, INC. | |||||||||||||||||||||||||||||||||||||||||
| 2017 | 2018 | ||||||||||||||||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | ||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) | $ | 4,773 | $ | 8,970 | $ | 3,617 | $ | (5,571 | ) | $ | 11,789 | $ | (17,441 | ) | $ | 5,902 | $ | (6,841 | ) | $ | (21,005 | ) | $ | (39,385 | ) | ||||||||||||||||
| LESS: | |||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (1,669 | ) | (2,184 | ) | (2,445 | ) | (4,479 | ) | (10,777 | ) | (11,801 | ) | (13,755 | ) | (14,100 | ) | (13,257 | ) | (52,913 | ) | |||||||||||||||||||||
| Depreciation | (3,798 | ) | (3,547 | ) | (3,544 | ) | (4,401 | ) | (15,290 | ) | (7,334 | ) | (7,157 | ) | (7,065 | ) | (7,198 | ) | (28,754 | ) | |||||||||||||||||||||
| Amortization | (3,092 | ) | (3,124 | ) | (3,275 | ) | (5,256 | ) | (14,747 | ) | (12,329 | ) | (12,282 | ) | (12,234 | ) | (12,509 | ) | (49,354 | ) | |||||||||||||||||||||
| (Provision for) benefit from income taxes | (687 | ) | 724 | 21 | 5,618 | 5,676 | 5,879 | 7,646 | (2,537 | ) | (14,278 | ) | (3,290 | ) | |||||||||||||||||||||||||||
| EBITDA | $ | 14,019 | $ | 17,101 | $ | 12,860 | $ | 2,947 | $ | 46,927 | $ | 8,144 | $ | 31,450 | $ | 29,095 | $ | 26,237 | $ | 94,926 | |||||||||||||||||||||
| LESS: | |||||||||||||||||||||||||||||||||||||||||
| Restructuring related inventory charges | — | — | — | — | — | (473 | ) | (1,067 | ) | — | (864 | ) | (2,404 | ) | |||||||||||||||||||||||||||
| Amortization of inventory step-up | — | — | — | (4,300 | ) | (4,300 | ) | (6,600 | ) | — | — | — | (6,600 | ) | |||||||||||||||||||||||||||
| Restructuring charges, net | (1,458 | ) | (3,566 | ) | (341 | ) | (697 | ) | (6,062 | ) | (9,615 | ) | (844 | ) | (1,348 | ) | (944 | ) | (12,751 | ) | |||||||||||||||||||||
| Special recoveries (charges), net | 2,268 | 5,520 | (1,978 | ) | (13,799 | ) | (7,989 | ) | (2,831 | ) | (1,156 | ) | (1,408 | ) | (5,692 | ) | (11,087 | ) | |||||||||||||||||||||||
| ADJUSTED EBITDA | $ | 13,209 | $ | 15,147 | $ | 15,179 | $ | 21,743 | $ | 65,278 | $ | 27,663 | $ | 34,517 | $ | 31,851 | $ | 33,737 | $ | 127,768 | |||||||||||||||||||||
CIRCOR INTERNATIONAL, INC. | |||||||||||||||||||||||||||||||||||||||||
| 2017 | 2018 | ||||||||||||||||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | ||||||||||||||||||||||||||||||||
| GAAP OPERATING INCOME (LOSS) | $ | 7,354 | $ | 11,404 | $ | 6,864 | $ | (5,054 | ) | $ | 20,568 | $ | (13,380 | ) | $ | 8,252 | $ | 8,216 | $ | 6,296 | $ | 9,384 | |||||||||||||||||||
| LESS: | |||||||||||||||||||||||||||||||||||||||||
| Restructuring related inventory charges | — | — | — | — | — | 473 | 1,067 | — | 864 | 2,404 | |||||||||||||||||||||||||||||||
| Amortization of inventory step-up | — | — | — | 4,300 | 4,300 | 6,600 | — | — | — | 6,600 | |||||||||||||||||||||||||||||||
| Restructuring charges, net | 1,458 | 3,566 | 341 | 697 | 6,062 | 9,615 | 844 | 1,348 | 944 | 12,751 | |||||||||||||||||||||||||||||||
| Acquisition amortization | 2,552 | 2,599 | 2,694 | 4,697 | 12,542 | 11,797 | 11,767 | 11,733 | 12,012 | 47,309 | |||||||||||||||||||||||||||||||
| Acquisition depreciation | — | — | — | 233 | 233 | 1,837 | 1,735 | 1,742 | 1,735 | 7,049 | |||||||||||||||||||||||||||||||
| Special (recoveries) charges, net | (2,268 | ) | (5,520 | ) | 1,978 | 13,799 | 7,989 | 2,831 | 1,156 | 1,408 | 5,692 | 11,087 | |||||||||||||||||||||||||||||
| ADJUSTED OPERATING INCOME | $ | 9,096 | $ | 12,049 | $ | 11,877 | $ | 18,672 | $ | 51,694 | $ | 19,773 | $ | 24,821 | $ | 24,447 | $ | 27,543 | $ | 96,584 | |||||||||||||||||||||
| GAAP OPERATING MARGIN | 5.1 | % | 7.5 | % | 4.3 | % | (2.5 | )% | 3.1 | % | (4.9 | )% | 2.7 | % | 2.8 | % | 2.1 | % | 0.8 | % | |||||||||||||||||||||
| LESS: | |||||||||||||||||||||||||||||||||||||||||
| Restructuring related inventory charges | — | % | — | % | — | % | — | % | — | % | 0.2 | % | 0.4 | % | — | % | 0.3 | % | 0.2 | % | |||||||||||||||||||||
| Amortization of inventory step-up | — | % | — | % | — | % | 2.1 | % | 0.6 | % | 2.4 | % | — | % | — | % | — | % | 0.6 | % | |||||||||||||||||||||
| Restructuring charges, net | 1.0 | % | 2.4 | % | 0.2 | % | 0.3 | % | 0.9 | % | 3.5 | % | 0.3 | % | 0.5 | % | 0.3 | % | 1.1 | % | |||||||||||||||||||||
| Acquisition amortization | 1.8 | % | 1.7 | % | 1.7 | % | 2.3 | % | 1.9 | % | 4.3 | % | 3.9 | % | 3.9 | % | 4.0 | % | 4.0 | % | |||||||||||||||||||||
| Acquisition depreciation | — | % | — | % | — | % | 0.1 | % | — | % | 0.7 | % | 0.6 | % | 0.6 | % | 0.6 | % | 0.6 | % | |||||||||||||||||||||
| Special (recoveries) charges, net | (1.6 | )% | (3.7 | )% | 1.2 | % | 6.7 | % | 1.2 | % | 1.0 | % | 0.4 | % | 0.5 | % | 1.9 | % | 0.9 | % | |||||||||||||||||||||
| ADJUSTED OPERATING MARGIN | 6.3 | % | 8.0 | % | 7.4 | % | 9.1 | % | 7.8 | % | 7.2 | % | 8.2 | % | 8.2 | % | 9.1 | % | 8.2 | % | |||||||||||||||||||||
The Company is providing certain combined information related to the recently acquired Fluid Handling business.
CIRCOR INTERNATIONAL, INC. | |||||||||||||||||||||||||
SEGMENT INFORMATION - COMBINED | |||||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||
UNAUDITED | |||||||||||||||||||||||||
| 2017 | |||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | |||||||||||||||||||||
| ORDERS - Recast | |||||||||||||||||||||||||
| Energy | $ | 100,012 | $ | 73,140 | $ | 84,857 | $ | 118,073 | $ | 376,082 | |||||||||||||||
| Aerospace & Defense | 56,416 | 39,902 | 45,939 | 52,043 | 194,300 | ||||||||||||||||||||
| Industrial | 27,654 | 29,889 | 27,296 | 46,407 | 131,246 | ||||||||||||||||||||
Total | $ | 184,082 | $ | 142,931 | $ | 158,092 | $ | 216,523 | $ | 701,628 | |||||||||||||||
| ORDERS - Fluid Handling | |||||||||||||||||||||||||
| Energy | $ | 23,679 | $ | 16,882 | $ | 21,401 | $ | 11,803 | $ | 73,765 | |||||||||||||||
| Aerospace & Defense | 8,255 | 24,375 | 9,716 | 6,816 | 49,162 | ||||||||||||||||||||
| Industrial | 77,944 | 76,866 | 87,378 | 60,193 | 302,381 | ||||||||||||||||||||
Total | $ | 109,878 | $ | 118,123 | $ | 118,495 | $ | 78,812 | $ | 425,308 | |||||||||||||||
| ORDERS - Combined | |||||||||||||||||||||||||
| Energy | $ | 123,690 | $ | 90,022 | $ | 106,258 | $ | 129,876 | $ | 449,846 | |||||||||||||||
| Aerospace & Defense | 64,671 | 64,277 | 55,655 | 58,859 | 243,462 | ||||||||||||||||||||
| Industrial | 105,598 | 106,755 | 114,674 | 106,601 | 433,628 | ||||||||||||||||||||
Total | $ | 293,959 | $ | 261,054 | $ | 276,587 | $ | 295,336 | $ | 1,126,936 | |||||||||||||||
| NET REVENUES - Recast | |||||||||||||||||||||||||
| Energy | $ | 76,210 | $ | 78,276 | $ | 88,570 | $ | 96,561 | $ | 339,617 | |||||||||||||||
| Aerospace & Defense | 41,601 | 43,304 | 41,117 | 56,961 | 182,983 | ||||||||||||||||||||
| Industrial | 27,397 | 29,651 | 30,006 | 52,056 | 139,110 | ||||||||||||||||||||
Total | $ | 145,208 | $ | 151,231 | $ | 159,693 | $ | 205,578 | $ | 661,710 | |||||||||||||||
| NET REVENUES - Fluid Handling | |||||||||||||||||||||||||
| Energy | $ | 15,546 | $ | 17,705 | $ | 17,789 | $ | 13,663 | $ | 64,703 | |||||||||||||||
| Aerospace & Defense | 10,728 | 17,044 | 11,208 | 6,918 | 45,898 | ||||||||||||||||||||
| Industrial | 85,264 | 83,310 | 85,604 | 72,489 | 326,667 | ||||||||||||||||||||
Total | $ | 111,538 | $ | 118,059 | $ | 114,601 | $ | 93,070 | $ | 437,268 | |||||||||||||||
| NET REVENUES - Combined | |||||||||||||||||||||||||
| Energy | $ | 91,756 | $ | 95,981 | $ | 106,359 | $ | 110,224 | $ | 404,320 | |||||||||||||||
| Aerospace & Defense | 52,329 | 60,348 | 52,325 | 63,879 | 228,881 | ||||||||||||||||||||
| Industrial | 112,661 | 112,961 | 115,610 | 124,545 | 465,777 | ||||||||||||||||||||
Total | $ | 256,746 | $ | 269,290 | $ | 274,294 | $ | 298,648 | $ | 1,098,978 | |||||||||||||||
| Notes: | ||
| - Items labeled "Recast" represent previously reported CIRCOR information, adjusted to reflect the impact of our February 28, 2018 organizational realignment | ||
| - Items labeled "Fluid Handling" represent the information from the Fluid Handling businesses prior to their acquisition by CIRCOR on December 10, 2017 | ||
| - Items labeled "Combined" represent the sum of the Recast and Fluid Handling information | ||
CIRCOR INTERNATIONAL, INC. | ||||||||||||||||||||||||||
SEGMENT INFORMATION - COMBINED | ||||||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||
UNAUDITED | ||||||||||||||||||||||||||
| 2017 | ||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | ||||||||||||||||||||||
SEGMENT OPERATING INCOME - Recast | ||||||||||||||||||||||||||
| Energy | $ | 6,407 | $ | 8,170 | $ | 6,936 | $ | 8,618 | $ | 30,131 | ||||||||||||||||
| Aerospace & Defense | 3,784 | 4,374 | 4,333 | 10,884 | 23,375 | |||||||||||||||||||||
| Industrial | 4,384 | 4,901 | 5,675 | 4,972 | 19,932 | |||||||||||||||||||||
| Corporate expenses | (5,479 | ) | (5,396 | ) | (5,067 | ) | (5,802 | ) | (21,744 | ) | ||||||||||||||||
| Total | $ | 9,096 | $ | 12,049 | $ | 11,877 | $ | 18,672 | $ | 51,694 | ||||||||||||||||
SEGMENT OPERATING INCOME - Fluid Handling | ||||||||||||||||||||||||||
| Energy | $ | (83 | ) | $ | 1,080 | $ | 1,761 | $ | 812 | $ | 3,570 | |||||||||||||||
| Aerospace & Defense | 1,488 | 3,661 | 2,201 | (367 | ) | 6,983 | ||||||||||||||||||||
| Industrial | 8,833 | 7,709 | 4,365 | (1,414 | ) | 19,493 | ||||||||||||||||||||
| Corporate expenses | — | — | — | — | — | |||||||||||||||||||||
| Total | $ | 10,238 | $ | 12,450 | $ | 8,327 | $ | (969 | ) | $ | 30,046 | |||||||||||||||
SEGMENT OPERATING INCOME - Combined | ||||||||||||||||||||||||||
| Energy | $ | 6,324 | $ | 9,250 | $ | 8,697 | $ | 9,430 | $ | 33,701 | ||||||||||||||||
| Aerospace & Defense | 5,272 | 8,035 | 6,534 | 10,517 | 30,358 | |||||||||||||||||||||
| Industrial | 13,217 | 12,610 | 10,040 | 3,558 | 39,425 | |||||||||||||||||||||
| Corporate expenses | (5,479 | ) | (5,396 | ) | (5,067 | ) | (5,802 | ) | (21,744 | ) | ||||||||||||||||
| Total | $ | 19,334 | $ | 24,499 | $ | 20,204 | $ | 17,703 | $ | 81,740 | ||||||||||||||||
SEGMENT OPERATING MARGIN - Combined | ||||||||||||||||||||||||||
| Energy | 6.9 | % | 9.6 | % | 8.2 | % | 8.6 | % | 8.3 | % | ||||||||||||||||
| Aerospace & Defense | 10.1 | % | 13.3 | % | 12.5 | % | 16.5 | % | 13.3 | % | ||||||||||||||||
| Industrial | 11.7 | % | 11.2 | % | 8.7 | % | 2.9 | % | 8.5 | % | ||||||||||||||||
| Corporate expenses | (2.1 | )% | (2.0 | )% | (1.8 | )% | (1.9 | )% | (2.0 | )% | ||||||||||||||||
| Total | 7.5 | % | 9.1 | % | 7.4 | % | 5.9 | % | 7.4 | % | ||||||||||||||||
| Notes: |
| - Items labeled "Recast" represent previously reported CIRCOR information, adjusted to reflect the impact of our February 28, 2018 organizational realignment |
| - Items labeled "Fluid Handling" represent the information from the Fluid Handling businesses prior to their acquisition by CIRCOR on December 10, 2017 |
| - Items labeled "Combined" represent the sum of the Recast and Fluid Handling information |
| - Segment Operating Margin - Combined represent Segment Operating Income - Combined divided by Segment Net Revenues Combined |
CIRCOR INTERNATIONAL, INC. | ||||||||||||||||||||||||||||||||||||||||||
Q4 2018 Organic Growth Calculations | ||||||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||||||||||||||||||
UNAUDITED | ||||||||||||||||||||||||||||||||||||||||||
| Industrial | Energy | Aerospace & Defense | ||||||||||||||||||||||||||||||||||||||||
| ORDERS | Reported | Pro Forma | Reported | Pro Forma | Reported | Pro Forma | ||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||
| 2017 | 47,154 | 107,348 | 118,030 | 129,833 | 51,278 | 58,094 | ||||||||||||||||||||||||||||||||||||
| Organic | 6,499 | 14 | % | 16,392 | 15 | % | (31,478 | ) | (27 | )% | (30,201 | ) | (23 | )% | (4,253 | ) | (8 | )% | 19,188 | 33 | % | |||||||||||||||||||||
Acquisitions/Divestitures | 68,803 | 146 | % | 1,437 | 1 | % | 12,201 | 10 | % | — | — | % | 30,257 | 59 | % | — | — | % | ||||||||||||||||||||||||
| Foreign Exchange | (570 | ) | (1 | )% | (3,291 | ) | (3 | )% | (763 | ) | (1 | )% | (1,642 | ) | (1 | )% | (580 | ) | (1 | )% | (580 | ) | (1 | )% | ||||||||||||||||||
| Total Change | 74,732 | 158 | % | 14,538 | 14 | % | (20,040 | ) | (17 | )% | (31,843 | ) | (25 | )% | 25,424 | 50 | % | 18,608 | 32 | % | ||||||||||||||||||||||
| 2018 | 121,886 | 121,886 | 97,990 | 97,990 | 76,702 | 76,702 | ||||||||||||||||||||||||||||||||||||
| Industrial | Energy | Aerospace & Defense | ||||||||||||||||||||||||||||||||||||||||
| NET REVENUE | Reported | Pro Forma | Reported | Pro Forma | Reported | Pro Forma | ||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||
| 2017 | 52,056 | 124,545 | 96,561 | 110,225 | 56,961 | 63,878 | ||||||||||||||||||||||||||||||||||||
| Organic | 3,866 | 7 | % | 3,001 | 2 | % | 13,216 | 14 | % | 9,008 | 8 | % | (3,642 | ) | (6 | )% | 24 | — | % | |||||||||||||||||||||||
Acquisitions/Divestitures | 65,121 | 125 | % | (3,904 | ) | (3 | )% | 8,561 | 9 | % | — | — | % | 10,584 | 19 | % | — | — | % | |||||||||||||||||||||||
| Foreign Exchange | (492 | ) | (1 | )% | (3,091 | ) | (2 | )% | (906 | ) | (1 | )% | (1,800 | ) | (2 | )% | (620 | ) | (1 | )% | (620 | ) | (1 | )% | ||||||||||||||||||
| Total Change | 68,495 | 132 | % | (3,994 | ) | (3 | )% | 20,871 | 22 | % | 7,208 | 7 | % | 6,322 | 11 | % | (596 | ) | (1 | )% | ||||||||||||||||||||||
| 2018 | 120,551 | 120,551 | 117,431 | 117,432 | 63,283 | 63,282 | ||||||||||||||||||||||||||||||||||||
CIRCOR INTERNATIONAL, INC. | |||||||||||||||||
Q4 2018 Organic Growth Calculations | |||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||
UNAUDITED | |||||||||||||||||
| CIRCOR | |||||||||||||||||
| ORDERS | Reported | Pro Forma | |||||||||||||||
| $ | % | $ | % | ||||||||||||||
| 2017 | 216,462 | 295,275 | |||||||||||||||
| Organic | (29,232 | ) | (14 | )% | 5,379 | 2 | % | ||||||||||
Acquisitions/Divestitures | 111,261 | 51 | % | 1,437 | — | % | |||||||||||
| Foreign Exchange | (1,913 | ) | (1 | )% | (5,513 | ) | (2 | )% | |||||||||
| Total Change | 80,116 | 37 | % | 1,303 | (1 | )% | |||||||||||
| 2018 | 296,578 | 296,578 | |||||||||||||||
| CIRCOR | |||||||||||||||||
| NET REVENUE | Reported | Pro Forma | |||||||||||||||
| $ | % | $ | % | ||||||||||||||
| 2017 | 205,578 | 298,649 | |||||||||||||||
| Organic | 13,548 | 7 | % | 12,140 | 4 | % | |||||||||||
Acquisitions/Divestitures | 84,266 | 41 | % | (3,904 | ) | (1 | )% | ||||||||||
| Foreign Exchange | (2,030 | ) | (1 | )% | (5,523 | ) | (2 | )% | |||||||||
| Total Change | 95,784 | 47 | % | 2,713 | 1 | % | |||||||||||
| 2018 | 301,362 | 301,362 | |||||||||||||||
CIRCOR INTERNATIONAL, INC. | ||||||||||||||||||||||||||
RECONCILIATION OF FLUID HANDLING SEGMENT INFORMATION TO GAAP OPERATING INCOME | ||||||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||
UNAUDITED | ||||||||||||||||||||||||||
| 2017 | ||||||||||||||||||||||||||
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | ||||||||||||||||||||||
| FLUID HANDLING GAAP OPERATING INCOME (LOSS) | $ | 4,359 | $ | 19,738 | $ | 2,241 | $ | 3,129 | $ | 29,467 | ||||||||||||||||
| LESS: | ||||||||||||||||||||||||||
| Asbestos costs | 2,690 | 2,517 | 2,379 | 1,274 | 8,860 | |||||||||||||||||||||
| Impairment charges | — | — | — | — | — | |||||||||||||||||||||
| Exited businesses | 65 | (26 | ) | (47 | ) | — | (8 | ) | ||||||||||||||||||
| Acquisition amortization | 796 | 810 | 818 | — | 2,424 | |||||||||||||||||||||
| Restructuring and other special charges (recoveries) | 2,328 | (10,589 | ) | 636 | (5,372 | ) | (12,997 | ) | ||||||||||||||||||
| Stay bonus | — | — | 2,300 | — | 2,300 | |||||||||||||||||||||
| FLUID HANDLING ADJUSTED OPERATING INCOME | $ | 10,238 | $ | 12,450 | $ | 8,327 | $ | (969 | ) | $ | 30,046 | |||||||||||||||
| Notes |
| - Amounts relate to Fluid Handling results prior to December 10, 2017, the date of CIRCOR's acquisition. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190226006276/en/
Contacts:
Senior Vice President Finance
CIRCOR
International
(781) 270-1200
