Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CRANE CO /DE/ | d8k.htm |
| EX-99.1 - EARNINGS PRESS RELEASE - CRANE CO /DE/ | dex991.htm |
Exhibit 99.2
CRANE CO.
Income Statement Data
(in thousands, except per share data)
| Three Months Ended June 30, |
Six Months
Ended June 30, |
|||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||
| Net Sales: |
||||||||||||||||||
| Aerospace & Electronics |
$ | 139,299 | $ | 146,995 | $ | 272,944 | $ | 298,942 | ||||||||||
| Engineered Materials |
58,646 | 41,772 | 112,401 | 79,925 | ||||||||||||||
| Merchandising Systems |
74,527 | 73,331 | 144,698 | 145,026 | ||||||||||||||
| Fluid Handling |
254,587 | 263,083 | 502,376 | 529,573 | ||||||||||||||
| Controls |
25,755 | 20,310 | 50,686 | 47,163 | ||||||||||||||
| Total Net Sales |
$ | 552,814 | $ | 545,491 | $ | 1,083,105 | $ | 1,100,629 | ||||||||||
| Operating Profit: |
||||||||||||||||||
| Aerospace & Electronics |
$ | 26,215 | $ | 19,099 | $ | 50,704 | $ | 36,331 | ||||||||||
| Engineered Materials |
10,172 | 4,580 | 18,712 | 6,067 | ||||||||||||||
| Merchandising Systems |
8,110 | 6,675 | 13,079 | 9,655 | ||||||||||||||
| Fluid Handling |
32,152 | 27,059 | 60,141 | 63,826 | ||||||||||||||
| Controls |
825 | (1,731 | ) | 951 | (1,317 | ) | ||||||||||||
| Corporate |
(12,170 | ) | (10,190 | ) | (25,003 | ) | (31,186 | ) | * | |||||||||
| Total Operating Profit |
65,304 | 45,492 | 118,584 | 83,376 | ||||||||||||||
| Interest Income |
236 | 465 | 461 | 1,308 | ||||||||||||||
| Interest Expense |
(6,657 | ) | (6,780 | ) | (13,383 | ) | (13,549 | ) | ||||||||||
| Miscellaneous-Net |
(604 | ) | 529 | (625 | ) | 2,240 | ||||||||||||
| Income Before Income Taxes |
58,279 | 39,706 | 105,037 | 73,375 | ||||||||||||||
| Provision for Income Taxes |
18,116 | 11,901 | 31,690 | 22,141 | ||||||||||||||
| Net income before allocations to noncontrolling interests |
40,163 | 27,805 | 73,347 | 51,234 | ||||||||||||||
| Less: Noncontrolling interest in subsidiaries’ earnings |
122 | 38 | 72 | 157 | ||||||||||||||
| Net income attributable to common shareholders |
40,041 | 27,767 | 73,275 | 51,077 | ||||||||||||||
| Share Data: |
||||||||||||||||||
| Earnings per Diluted Share |
$ | 0.67 | $ | 0.47 | $ | 1.23 | $ | 0.87 | ||||||||||
| Average Diluted Shares Outstanding |
59,894 | 58,728 | 59,716 | 58,643 | ||||||||||||||
| Average Basic Shares Outstanding |
58,909 | 58,459 | 58,777 | 58,458 | ||||||||||||||
| Supplemental Data: |
||||||||||||||||||
| Cost of Sales |
$ | 361,779 | $ | 369,537 | $ | 714,050 | $ | 751,546 | ||||||||||
| Selling, General & Administrative |
125,731 | 130,462 | 250,471 | 265,707 | ||||||||||||||
| Depreciation and Amortization ** |
15,408 | 14,779 | 29,845 | 29,832 | ||||||||||||||
| Stock-Based Compensation Expense |
3,172 | 2,374 | 6,344 | 4,436 | ||||||||||||||
| * | Includes a charge of $7.25 million related to the settlement of a lawsuit. |
| ** | Amount included within cost of sales and selling, general & administrative costs. |
CRANE CO.
Condensed Balance Sheets
(in thousands)
| June 30, 2010 |
December 31, 2009 | |||||
| ASSETS |
||||||
| Current Assets |
||||||
| Cash and Cash Equivalents |
$ | 335,529 | $ | 372,714 | ||
| Accounts Receivable, net |
295,336 | 282,463 | ||||
| Current Insurance Receivable - Asbestos |
35,300 | 35,300 | ||||
| Inventories, net |
299,219 | 284,552 | ||||
| Other Current Assets |
73,026 | 71,317 | ||||
| Total Current Assets |
1,038,410 | 1,046,346 | ||||
| Property, Plant and Equipment, net |
274,232 | 285,224 | ||||
| Long-Term Insurance Receivable - Asbestos |
192,625 | 213,004 | ||||
| Other Assets |
395,084 | 406,346 | ||||
| Goodwill |
766,512 | 761,978 | ||||
| Total Assets |
$ | 2,666,863 | $ | 2,712,898 | ||
| LIABILITIES AND EQUITY |
||||||
| Current Liabilities |
||||||
| Notes Payable and Current Maturities of Long-Term Debt |
$ | 1,032 | $ | 1,078 | ||
| Accounts Payable |
152,533 | 142,390 | ||||
| Current Asbestos Liability |
100,300 | 100,300 | ||||
| Accrued Liabilities |
211,178 | 218,864 | ||||
| Income Taxes |
10,660 | 4,150 | ||||
| Total Current Liabilities |
475,703 | 466,782 | ||||
| Long-Term Debt |
398,646 | 398,557 | ||||
| Long-Term Deferred Tax Liability |
29,416 | 29,578 | ||||
| Long-Term Asbestos Liability |
672,848 | 720,713 | ||||
| Other Liabilities |
194,242 | 203,566 | ||||
| Total Equity |
896,008 | 893,702 | ||||
| Total Liabilities and Equity |
$ | 2,666,863 | $ | 2,712,898 | ||
CRANE CO.
Condensed Statements of Cash Flows
(in thousands)
| Three Months Ended June 30 |
Six Months Ended June 30 |
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| 2010 | 2009 | 2010 | 2009 | |||||||||||||||
| Operating Activities: |
||||||||||||||||||
| Net income attributable to common shareholders |
$ | 40,041 | $ | 27,767 | $ | 73,275 | $ | 51,077 | ||||||||||
| Noncontrolling interest in subsidiaries’ earnings |
122 | 38 | 72 | 157 | ||||||||||||||
| Net income before allocations to noncontrolling interests |
40,163 | 27,805 | 73,347 | 51,234 | ||||||||||||||
| Depreciation and amortization |
15,408 | 14,779 | 29,845 | 29,832 | ||||||||||||||
| Stock-based compensation expense |
3,172 | 2,374 | 6,344 | 4,436 | ||||||||||||||
| Deferred income taxes |
6,538 | (5,910 | ) | 13,220 | 2,784 | |||||||||||||
| Cash provided (used) for operating working capital |
11,041 | 6,997 | (20,646 | ) | (20,622 | ) | ||||||||||||
| Other |
(12,876 | ) | (499 | ) | (10,721 | ) | (9,390 | ) | ||||||||||
| Subtotal |
63,446 | 45,546 | 91,389 | 58,274 | ||||||||||||||
| Asbestos related payments, net of insurance recoveries |
(16,360 | ) | (15,191 | ) | (27,485 | ) | (12,535 | ) | * | |||||||||
| Total provided by operating activities |
47,086 | 30,355 | 63,904 | 45,739 | ||||||||||||||
| Investing Activities: |
||||||||||||||||||
| Capital expenditures |
(4,271 | ) | (7,458 | ) | (8,390 | ) | (17,432 | ) | ||||||||||
| Proceeds from disposition of capital assets |
42 | 622 | 42 | 2,325 | ||||||||||||||
| Payment for acquisition - net of cash acquired |
— | — | (51,167 | ) | — | |||||||||||||
| Total used for investing activities |
(4,229 | ) | (6,836 | ) | (59,515 | ) | (15,107 | ) | ||||||||||
| Financing Activities: |
||||||||||||||||||
| Dividends paid |
(11,815 | ) | (11,696 | ) | (23,558 | ) | (23,384 | ) | ||||||||||
| Reacquisition of shares on open market |
(9,990 | ) | — | (9,990 | ) | — | ||||||||||||
| Stock options exercised - net of shares reacquired |
7,675 | 884 | 12,389 | 247 | ||||||||||||||
| Excess tax benefit from stock-based compensation |
578 | — | 969 | — | ||||||||||||||
| Change in short-term debt |
(87 | ) | (6,089 | ) | (3,133 | ) | (15,405 | ) | ||||||||||
| Total used for financing activities |
(13,639 | ) | (16,901 | ) | (23,323 | ) | (38,542 | ) | ||||||||||
| Effect of exchange rate on cash and cash equivalents |
(13,273 | ) | 16,041 | (18,251 | ) | 9,044 | ||||||||||||
| Increase (decrease) in cash and cash equivalents |
15,945 | 22,659 | (37,185 | ) | 1,134 | |||||||||||||
| Cash and cash equivalents at beginning of period |
319,584 | 210,315 | 372,714 | 231,840 | ||||||||||||||
| Cash and cash equivalents at end of period |
$ | 335,529 | $ | 232,974 | $ | 335,529 | $ | 232,974 | ||||||||||
| * | Includes a $14.5 million insurance settlement receipt from the Highlands Insurance Company. |
CRANE CO.
Order Backlog
(in thousands)
| June 30, 2010 |
March 31, 2010 |
December 31, 2009 |
September 30 2009 |
June 30, 2009 | |||||||||||
| Aerospace & Electronics |
$ | 394,554 | $ | 388,169 | $ | 351,004 | $ | 369,898 | $ | 383,335 | |||||
| Engineered Materials |
12,496 | 14,810 | 12,070 | 8,454 | 9,135 | ||||||||||
| Merchandising Systems |
20,346 | 21,947 | 23,522 | 23,574 | 19,955 | ||||||||||
| Fluid Handling |
257,840 | 253,946 | 249,901 | 252,333 | 256,467 | ||||||||||
| Controls |
28,711 | 26,910 | 27,958 | 27,292 | 28,026 | ||||||||||
| Total Backlog |
$ | 713,947 | $ | 705,782 | $ | 664,455 | $ | 681,551 | $ | 696,918 | |||||
CRANE CO.
Non-GAAP Financial Measures
(in thousands)
| Three Months Ended June 30, |
Six Months
Ended June 30, |
Percent Change June 30, 2010 |
Percent Change June 30, 2010 |
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| 2010 | 2009 | 2010 | 2009 | Three Months | Six Months | |||||||||||||||||||
| INCOME ITEMS |
||||||||||||||||||||||||
| Net Sales |
$ | 552,814 | $ | 545,491 | $ | 1,083,105 | $ | 1,100,629 | 1.3 | % | -1.6 | % | ||||||||||||
| Operating Profit |
65,304 | 45,492 | 118,584 | 83,376 | 43.6 | % | 42.2 | % | ||||||||||||||||
| Special Items impacting Operating Profit: | ||||||||||||||||||||||||
| Lawsuit Settlement—Pre-Tax (a) |
— | (500 | ) | — | 7,250 | |||||||||||||||||||
| Restructuring Charges (Gains)- Pre-Tax (b) |
(885 | ) | 2,295 | (750 | ) | 1,847 | ||||||||||||||||||
| Operating Profit before Special Items |
$ | 64,419 | $ | 47,287 | $ | 117,834 | $ | 92,473 | 36.2 | % | 27.4 | % | ||||||||||||
| Percentage of Sales |
11.7 | % | 8.7 | % | 10.9 | % | 8.4 | % | ||||||||||||||||
| Net Income Attributable to Common Shareholders |
$ | 40,041 | $ | 27,767 | $ | 73,275 | $ | 51,077 | ||||||||||||||||
| Per Share |
$ | 0.67 | $ | 0.47 | $ | 1.23 | $ | 0.87 | 41.4 | % | 40.9 | % | ||||||||||||
| Special Items impacting Net Income Attributable to Common Shareholders: |
||||||||||||||||||||||||
| Lawsuit Settlement—Net of Tax (a) |
— | (325 | ) | — | 4,713 | |||||||||||||||||||
| Per Share |
$ | (0.01 | ) | $ | 0.08 | |||||||||||||||||||
| Restructuring Charges (Gains)—Net of Tax (b) |
(561 | ) | 1,692 | (475 | ) | 1,402 | ||||||||||||||||||
| Per Share |
$ | (0.01 | ) | $ | 0.03 | $ | (0.01 | ) | $ | 0.02 | ||||||||||||||
| Net Income Attributable To Common Shareholders Before Special Items |
$ | 39,480 | $ | 29,134 | $ | 72,800 | $ | 57,192 | 35.5 | % | 27.3 | % | ||||||||||||
| Per Share |
$ | 0.66 | $ | 0.50 | $ | 1.22 | $ | 0.98 | 32.9 | % | 25.0 | % | ||||||||||||
| (a) During the three months ended March 31, 2009, the Company recorded a charge for the settlement of a lawsuit brought against the Company by a customer alleging failure of our fiberglass-reinforced plastic material. During the three months ended June 30, 2009, the Company recorded additional insurance recoveries associated with the aforementioned settlement.
(b) Amounts represent restructuring charges (gains) in connection with the Restructuring Program. |
| |||||||||||||||||||||||
| Three Months Ended June 30, |
Six Months
Ended June 30, |
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| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||
| CASH FLOW ITEMS | ||||||||||||||||||||||||
| Cash Provided from Operating Activities before Asbestos—Related Payments |
$ | 63,446 | $ | 45,546 | $ | 91,389 | $ | 58,274 | ||||||||||||||||
| Asbestos Related Payments, Net of Insurance Recoveries |
(16,360 | ) | (15,191 | ) | (27,485 | ) | (12,535 | ) | * | |||||||||||||||
| Cash Provided from Operating Activities |
47,086 | 30,355 | 63,904 | 45,739 | ||||||||||||||||||||
| Less: Capital Expenditures |
(4,271 | ) | (7,458 | ) | (8,390 | ) | (17,432 | ) | ||||||||||||||||
| Free Cash Flow |
$ | 42,815 | $ | 22,897 | $ | 55,514 | $ | 28,307 | ||||||||||||||||
| * | Includes a $14.5 million insurance settlement receipt from the Highlands Insurance Company. |
Certain non-GAAP measures have been provided to facilitate comparison with the prior year.
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company’s performance. In addition, Free Cash Flow provides supplemental information to assist management and investors in analyzing the Company’s ability to generate positive cash flow. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.