Attached files
| file | filename |
|---|---|
| 8-K - 8-K - CIRCOR INTERNATIONAL INC | cir_q4x2014x8-k.htm |
| EX-99.2 - FOURTH QUARTER 2014 INVESTOR REVIEW PRESENTATION - CIRCOR INTERNATIONAL INC | cir_q4x2014x8-kxex992.htm |
EXHIBIT 99.1
CIRCOR Reports Fourth-Quarter and Year-End 2014 Financial Results
Burlington, MA - February 18, 2015 - 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, 2014.
Fourth-Quarter 2014 Highlights
• | Revenue increases 6% organically to $218.6 million |
• | Adjusted EPS grows 14% to $1.08 |
• | Completed 2 divestitures |
• | Company announces new restructuring actions |
• | Company announces new Energy Group President |
Full-Year 2014 Highlights
• | Adjusted Operating Margins expand 30 bps |
• | Adjusted EPS increases 16% to $3.72 |
• | Free cash flow of $58 million, or 115% of net income |
“CIRCOR concluded 2014 with strong top-line growth and free cash flow generation in the fourth quarter,” said Scott Buckhout, President and Chief Executive Officer. “Revenues for the quarter were up 6% organically from the prior year driven in large part by our North American short-cycle businesses. In addition, we are reporting adjusted EPS of $1.08 for the quarter and $3.72 for the full year. Full year free cash flow was 115% of net income.”
During the quarter, a number of Brazilian engineering and construction customers filed for bankruptcy resulting in a $0.34 per share charge against outstanding receivables and an operating margin reduction of approximately 300 basis points. In addition, EPS reflects a net tax benefit of $0.21 per share primarily due to the utilization of foreign tax credits.
“Looking ahead to 2015, we expect the recent decline in oil prices to put pressure on our top line. As a result, we are implementing a broad-based cost reduction program, including restructuring actions, to mitigate the impact on our earnings and to align our businesses with a lower near-term demand outlook. We expect to take actions generating approximately $8 million of annualized savings. We commenced these actions earlier this quarter and expect to complete them before the end of the second quarter,” added Buckhout.
“Going forward, we will continue to invest in growth, simplify the Company and remain focused on building shareholder value through growth, margin expansion, strong cash flows and disciplined capital deployment,” concluded Buckhout.
First-Quarter 2015 Guidance
For the first quarter of 2015, the Company will provide its guidance during the conference call later today.
1
Selected Consolidated Results
Segment Results
1. Consolidated and Segment Results includes approximately $6.5 million of Q4 2014 charges associated with certain Brazilian customers for outstanding receivables and excludes special, restructuring charges/(recoveries) and impairments of $12.9 million, $12.0 million, $13.5 million and $15.5 million during Q4 2014, Q4 2013, FY2014 and FY2013 respectively, as well as restructuring inventory charges of $5.1 million and $2.9 million recorded in Q2 and Q3 2014, respectively, and $0.6 million during Q4 2013.
Conference Call Information
CIRCOR International will hold a conference call to review its financial results today, February 18, 2015, 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.
2
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 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. 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
3
CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share data) UNAUDITED | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | ||||||||||||
Net revenues | $ | 218,558 | $ | 214,035 | $ | 841,446 | $ | 857,808 | |||||||
Cost of revenues | 148,093 | 146,528 | 584,426 | 590,207 | |||||||||||
GROSS PROFIT | 70,465 | 67,507 | 257,520 | 267,601 | |||||||||||
Selling, general and administrative expenses | 49,430 | 43,394 | 178,800 | 182,954 | |||||||||||
Impairment charges | 726 | 6,872 | 726 | 6,872 | |||||||||||
Special charges, net | 12,159 | 5,160 | 12,737 | 8,602 | |||||||||||
OPERATING INCOME | 8,150 | 12,081 | 64,757 | 69,173 | |||||||||||
Other (income) expense: | |||||||||||||||
Interest expense, net | 407 | 792 | 2,652 | 3,161 | |||||||||||
Other (income) expense, net | (722 | ) | 167 | (1,156 | ) | 1,975 | |||||||||
TOTAL OTHER (INCOME) EXPENSE | (315 | ) | 959 | 1,496 | 5,136 | ||||||||||
INCOME BEFORE INCOME TAXES | 8,465 | 11,122 | 63,261 | 64,037 | |||||||||||
Provision (benefit) for income taxes | (690 | ) | 2,297 | 12,875 | 16,916 | ||||||||||
NET INCOME | $ | 9,155 | $ | 8,825 | $ | 50,386 | $ | 47,121 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.52 | $ | 0.50 | $ | 2.85 | $ | 2.68 | |||||||
Diluted | $ | 0.51 | $ | 0.50 | $ | 2.84 | $ | 2.67 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 17,678 | 17,594 | 17,660 | 17,564 | |||||||||||
Diluted | 17,782 | 17,710 | 17,768 | 17,629 | |||||||||||
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, 2014 | December 31, 2013 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 50,386 | $ | 47,121 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 16,446 | 16,034 | |||||
Amortization | 3,116 | 3,039 | |||||
Provision for bad debt expense | 7,817 | 1,194 | |||||
Intangible impairment charges | 726 | 6,872 | |||||
Compensation expense of share-based plans | 7,188 | 5,056 | |||||
Tax effect of share-based plan compensation | (756 | ) | (732 | ) | |||
Deferred (benefit) income taxes | (2,740 | ) | 5,778 | ||||
Gain on property, plant and equipment | (79 | ) | (322 | ) | |||
Loss on sale of businesses | 3,413 | — | |||||
Gain on return of acquisition purchase price | — | (3,400 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Trade accounts receivable, net | (38,439 | ) | 7,009 | ||||
Inventories, net | (3,952 | ) | (311 | ) | |||
Prepaid expenses and other assets | 884 | 160 | |||||
Accounts payable, accrued expenses and other liabilities | 26,816 | (15,292 | ) | ||||
Net cash provided by operating activities | 70,826 | 72,206 | |||||
INVESTING ACTIVITIES | |||||||
Additions to property, plant and equipment | (12,810 | ) | (17,328 | ) | |||
Proceeds from the sale of property, plant and equipment | 791 | 664 | |||||
Proceeds from divestitures | 10,177 | — | |||||
Business acquisitions, return of purchase price | — | 3,400 | |||||
Net cash used in investing activities | (1,842 | ) | (13,264 | ) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from long-term debt | 150,062 | 146,578 | |||||
Payments of long-term debt | (185,361 | ) | (166,239 | ) | |||
Debt issuance costs | (920 | ) | — | ||||
Dividends paid | (2,681 | ) | (2,700 | ) | |||
Proceeds from the exercise of stock options | 420 | 2,394 | |||||
Tax effect of share-based compensation | 756 | 732 | |||||
Net cash used in financing activities | (37,724 | ) | (19,235 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (12,156 | ) | 735 | ||||
INCREASE IN CASH AND CASH EQUIVALENTS | 19,106 | 40,442 | |||||
Cash and cash equivalents at beginning of year | 102,180 | 61,738 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 121,286 | $ | 102,180 | |||
Cash paid during the year for: | |||||||
Income taxes | $ | 16,672 | $ | 8,143 | |||
Interest | $ | 2,476 | $ | 960 | |||
5
CIRCOR INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands) | |||||||
December 31, 2014 | December 31, 2013 | ||||||
ASSETS | (unaudited) | ||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 121,286 | $ | 102,180 | |||
Short-term investments | 86 | 95 | |||||
Trade accounts receivable, less allowance for doubtful accounts of $9,536 and $2,449, respectively | 156,738 | 144,742 | |||||
Inventories, net | 183,434 | 199,404 | |||||
Prepaid expenses and other current assets | 21,626 | 19,815 | |||||
Deferred income tax asset | 22,861 | 17,686 | |||||
Total Current Assets | 506,031 | 483,922 | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | 96,212 | 107,724 | |||||
OTHER ASSETS: | |||||||
Goodwill | 72,430 | 75,876 | |||||
Intangibles, net | 26,887 | 35,656 | |||||
Deferred income tax asset | 19,048 | 18,579 | |||||
Other assets | 4,114 | 4,893 | |||||
TOTAL ASSETS | $ | 724,722 | $ | 726,650 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 87,112 | $ | 70,589 | |||
Accrued expenses and other current liabilities | 63,911 | 57,507 | |||||
Accrued compensation and benefits | 24,728 | 31,289 | |||||
Income taxes payable | 1,312 | 3,965 | |||||
Notes payable and current portion of long-term debt | 8,423 | 7,203 | |||||
Total Current Liabilities | 185,486 | 170,553 | |||||
LONG-TERM DEBT, NET OF CURRENT PORTION | 5,261 | 42,435 | |||||
DEFERRED INCOME TAXES | 7,771 | 9,666 | |||||
OTHER NON-CURRENT LIABILITIES | 32,111 | 27,109 | |||||
SHAREHOLDERS’ EQUITY: | |||||||
Common stock | 177 | 176 | |||||
Additional paid-in capital | 277,227 | 269,884 | |||||
Retained earnings | 250,635 | 202,930 | |||||
Accumulated other comprehensive (loss) gain, net of taxes | (33,946 | ) | 3,897 | ||||
Total Shareholders’ Equity | 494,093 | 476,887 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 724,722 | $ | 726,650 | |||
6
CIRCOR INTERNATIONAL, INC. SUMMARY OF ORDERS AND BACKLOG (in millions) UNAUDITED | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | ||||||||||||
ORDERS (1) | |||||||||||||||
Energy | $ | 158.3 | $ | 187.4 | $ | 675.9 | $ | 691.7 | |||||||
Aerospace & Defense | 45.1 | 43.7 | 173.4 | 189.6 | |||||||||||
Total orders | $ | 203.4 | $ | 231.1 | $ | 849.3 | $ | 881.3 | |||||||
BACKLOG (2) | December 31, 2014 | December 31, 2013 | |||||||||||||
Energy (3) | $ | 252.1 | $ | 288.7 | |||||||||||
Aerospace & Defense (4) | 108.8 | 173.9 | |||||||||||||
Total backlog | $ | 361.0 | $ | 462.6 | |||||||||||
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. | |||||||||||||||
Note 3: Energy backlog was reduced during the fourth quarter of 2014 by $25.4 million related to a business divestiture and customer order cancellations initially recorded in prior years. | |||||||||||||||
Note 4: Aerospace & Defense reduced backlog in the second quarter of 2014 by $28.6 million associated with the exit of certain landing gear product lines and in the fourth quarter of 2014 by $13.5 million associated with a business divestiture and change in policy. | |||||||||||||||
7
CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except earnings per share) UNAUDITED | ||||||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | |||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||||||
Energy | $ | 157,104 | $ | 173,557 | $ | 167,660 | $ | 162,649 | $ | 660,970 | $ | 162,587 | $ | 160,580 | $ | 157,658 | $ | 172,432 | $ | 653,257 | ||||||||||
Aerospace & Defense | 48,294 | 50,087 | 47,071 | 51,386 | 196,838 | 48,599 | 47,304 | 46,160 | 46,126 | 188,189 | ||||||||||||||||||||
Total | $ | 205,398 | $ | 223,644 | $ | 214,731 | $ | 214,035 | $ | 857,808 | $ | 211,186 | $ | 207,884 | $ | 203,818 | $ | 218,558 | $ | 841,446 | ||||||||||
ADJUSTED OPERATING MARGIN | ||||||||||||||||||||||||||||||
Energy | 10.8 | % | 13.3 | % | 15.2 | % | 17.1 | % | 14.1 | % | 13.8 | % | 14.6 | % | 16.9 | % | 14.3 | % | 14.9 | % | ||||||||||
Aerospace & Defense | 5.9 | % | 11.4 | % | 12.1 | % | 8.4 | % | 9.5 | % | 9.1 | % | 7.1 | % | 5.0 | % | 5.3 | % | 6.6 | % | ||||||||||
Segment operating margin | 9.6 | % | 12.9 | % | 14.5 | % | 15.0 | % | 13.0 | % | 12.7 | % | 12.9 | % | 14.2 | % | 12.4 | % | 13.0 | % | ||||||||||
Corporate expenses | (2.6 | )% | (2.9 | )% | (3.4 | )% | (3.5 | )% | (3.1 | )% | (3.4 | )% | (2.2 | )% | (2.8 | )% | (2.7 | )% | (2.8 | )% | ||||||||||
Adjusted operating margin | 7.1 | % | 10.0 | % | 11.1 | % | 11.6 | % | 9.9 | % | 9.4 | % | 10.7 | % | 11.4 | % | 9.6 | % | 10.2 | % | ||||||||||
Restructuring inventory charges | 0.1 | % | (0.1 | )% | — | % | 0.3 | % | 0.1 | % | — | % | 2.5 | % | 1.4 | % | — | % | 0.9 | % | ||||||||||
Impairment charges | — | % | — | % | — | % | 3.2 | % | 0.8 | % | — | % | — | % | — | % | 0.3 | % | 0.1 | % | ||||||||||
Special (recoveries) | — | % | — | % | (1.5 | )% | — | % | (0.4 | )% | (1.1 | )% | — | % | — | % | — | % | (0.3 | )% | ||||||||||
Special charges | 0.7 | % | 1.0 | % | 1.4 | % | 2.4 | % | 1.4 | % | 0.5 | % | 0.6 | % | 0.2 | % | 5.6 | % | 1.8 | % | ||||||||||
Total GAAP operating margin | 6.3 | % | 9.1 | % | 11.1 | % | 5.6 | % | 8.1 | % | 9.9 | % | 7.6 | % | 9.7 | % | 3.7 | % | 7.7 | % | ||||||||||
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CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except earnings per share) UNAUDITED | ||||||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | |||||||||||||||||||||
ADJUSTED OPERATING INCOME | ||||||||||||||||||||||||||||||
Energy | $ | 16,940 | $ | 23,114 | $ | 25,441 | $ | 27,809 | $ | 93,304 | $ | 22,462 | $ | 23,502 | $ | 26,577 | $ | 24,575 | $ | 97,117 | ||||||||||
Aerospace & Defense | 2,864 | 5,724 | 5,705 | 4,342 | 18,635 | 4,426 | 3,362 | 2,295 | 2,425 | 12,508 | ||||||||||||||||||||
Segment operating income | 19,804 | 28,838 | 31,146 | 32,151 | 111,939 | 26,888 | 26,864 | 28,872 | 27,000 | 109,625 | ||||||||||||||||||||
Corporate expenses | (5,277 | ) | (6,570 | ) | (7,400 | ) | (7,400 | ) | (26,646 | ) | (7,137 | ) | (4,634 | ) | (5,678 | ) | (5,965 | ) | (23,415 | ) | ||||||||||
Adjusted operating income | 14,528 | 22,268 | 23,746 | 24,751 | 85,293 | 19,750 | 22,231 | 23,194 | 21,035 | 86,210 | ||||||||||||||||||||
Restructuring inventory charges | 250 | (242 | ) | — | 638 | 646 | — | 5,139 | 2,850 | — | 7,989 | |||||||||||||||||||
Impairment charges | — | — | — | 6,872 | 6,872 | — | — | — | 726 | 726 | ||||||||||||||||||||
Special (recoveries) | — | — | (3,151 | ) | — | (3,151 | ) | (2,243 | ) | — | — | — | (2,243 | ) | ||||||||||||||||
Special charges | 1,378 | 2,254 | 2,961 | 5,160 | 11,752 | 1,086 | 1,257 | 478 | 12,159 | 14,980 | ||||||||||||||||||||
Total GAAP operating income | 12,900 | 20,256 | 23,936 | 12,081 | 69,174 | 20,907 | 15,834 | 19,866 | 8,150 | 64,757 | ||||||||||||||||||||
INTEREST EXPENSE, NET | (787 | ) | (838 | ) | (745 | ) | (792 | ) | (3,162 | ) | (918 | ) | (891 | ) | (436 | ) | (407 | ) | (2,652 | ) | ||||||||||
OTHER (EXPENSE) INCOME, NET | (612 | ) | (626 | ) | (568 | ) | (167 | ) | (1,974 | ) | 468 | 384 | (419 | ) | 722 | 1,156 | ||||||||||||||
PRETAX INCOME | 11,501 | 18,792 | 22,623 | 11,122 | 64,038 | 20,457 | 15,328 | 19,012 | 8,465 | 63,261 | ||||||||||||||||||||
(PROVISION) BENEFIT FOR INCOME TAXES | (3,592 | ) | (6,124 | ) | (4,903 | ) | (2,297 | ) | (16,916 | ) | (5,825 | ) | (3,402 | ) | (4,337 | ) | 690 | (12,875 | ) | |||||||||||
EFFECTIVE TAX RATE | 31.2 | % | 32.6 | % | 21.7 | % | 20.7 | % | 26.4 | % | 28.5 | % | 22.2 | % | 22.8 | % | (8.2 | )% | 20.4 | % | ||||||||||
NET INCOME | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 8,825 | $ | 47,121 | $ | 14,632 | $ | 11,926 | $ | 14,675 | $ | 9,155 | $ | 50,386 | ||||||||||
Weighted Average Common Shares Outstanding (Diluted) | 17,529 | 17,607 | 17,667 | 17,710 | 17,629 | 17,741 | 17,767 | 17,779 | 17,782 | 17,768 | ||||||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.45 | $ | 0.72 | $ | 1.00 | $ | 0.50 | $ | 2.67 | $ | 0.82 | $ | 0.67 | $ | 0.83 | $ | 0.51 | $ | 2.84 | ||||||||||
ADJUSTED EBITDA | $ | 18,682 | $ | 26,419 | $ | 27,850 | $ | 29,441 | $ | 102,392 | $ | 25,073 | $ | 27,536 | $ | 27,530 | $ | 26,789 | $ | 106,927 | ||||||||||
ADJUSTED EBITDA AS A % OF SALES | 9.1 | % | 11.8 | % | 13.0 | % | 13.8 | % | 11.9 | % | 11.9 | % | 13.2 | % | 13.5 | % | 12.3 | % | 12.7 | % | ||||||||||
CAPITAL EXPENDITURES | $ | 4,707 | $ | 4,100 | $ | 4,772 | $ | 3,749 | $ | 17,328 | $ | 2,670 | $ | 2,933 | $ | 3,297 | $ | 3,910 | $ | 12,810 | ||||||||||
9
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share) UNAUDITED | ||||||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||||||
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 | 14 | % | 75 | % | 167 | % | 167 | % | 116 | % | 98 | % | 62 | % | 96 | % | 243 | % | 115 | % | ||||||||||
FREE CASH FLOW | $ | 1,100 | $ | 9,525 | $ | 29,557 | $ | 14,696 | $ | 54,878 | $ | 14,387 | $ | 7,365 | $ | 14,015 | $ | 22,249 | $ | 58,016 | ||||||||||
ADD: | ||||||||||||||||||||||||||||||
Capital Expenditures | 4,707 | 4,100 | 4,772 | 3,749 | 17,328 | 2,670 | 2,933 | 3,297 | 3,910 | 12,810 | ||||||||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 5,807 | $ | 13,625 | $ | 34,329 | $ | 18,445 | $ | 72,206 | $ | 17,057 | $ | 10,298 | $ | 17,312 | $ | 26,159 | $ | 70,826 | ||||||||||
NET DEBT (CASH) | $ | 8,814 | $ | (1,376 | ) | $ | (36,466 | ) | $ | (52,637 | ) | $ | (52,637 | ) | $ | (66,056 | ) | $ | (72,982 | ) | $ | (80,829 | ) | $ | (107,688 | ) | $ | (107,688 | ) | |
ADD: | ||||||||||||||||||||||||||||||
Cash & Cash Equivalents | 57,633 | 60,831 | 86,285 | 102,180 | 102,180 | 122,097 | 116,326 | 114,580 | 121,286 | 121,286 | ||||||||||||||||||||
Investments | 99 | 96 | 98 | 95 | 95 | 92 | 95 | 91 | 86 | 86 | ||||||||||||||||||||
TOTAL DEBT | $ | 66,546 | $ | 59,551 | $ | 49,917 | $ | 49,638 | $ | 49,638 | $ | 56,133 | $ | 43,439 | $ | 33,842 | $ | 13,684 | $ | 13,684 | ||||||||||
DEBT AS % OF EQUITY | 16 | % | 14 | % | 11 | % | 10 | % | 10 | % | 11 | % | 9 | % | 7 | % | 3 | % | 3 | % | ||||||||||
TOTAL DEBT | 66,546 | 59,551 | 49,917 | 49,638 | 49,638 | 56,133 | 43,439 | 33,842 | 13,684 | 13,684 | ||||||||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 418,819 | 432,151 | 459,058 | 476,887 | 476,887 | 492,601 | 507,363 | 508,035 | 494,093 | 494,093 | ||||||||||||||||||||
10
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share) UNAUDITED | ||||||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | |||||||||||||||||||||
ADJUSTED OPERATING INCOME | $ | 14,528 | $ | 22,268 | $ | 23,746 | $ | 24,751 | $ | 85,293 | $ | 19,750 | $ | 22,230 | $ | 23,194 | $ | 21,035 | $ | 86,210 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Inventory restructuring charges | 250 | (242 | ) | — | 638 | 646 | — | 5,139 | 2,850 | — | 7,989 | |||||||||||||||||||
Impairment charges | — | — | — | 6,872 | 6,872 | — | — | — | 726 | 726 | ||||||||||||||||||||
Special (recoveries) | — | — | (3,151 | ) | — | (3,151 | ) | (2,243 | ) | — | — | — | (2,243 | ) | ||||||||||||||||
Special charges | 1,378 | 2,254 | 2,961 | 5,160 | 11,753 | 1,086 | 1,257 | 478 | 12,159 | 14,980 | ||||||||||||||||||||
OPERATING INCOME | $ | 12,900 | $ | 20,256 | $ | 23,936 | $ | 12,081 | $ | 69,173 | $ | 20,907 | $ | 15,834 | $ | 19,866 | $ | 8,150 | $ | 64,757 | ||||||||||
ADJUSTED NET INCOME | $ | 9,043 | $ | 14,044 | $ | 16,439 | $ | 16,773 | $ | 56,299 | $ | 13,916 | $ | 16,090 | $ | 16,827 | $ | 19,188 | $ | 66,019 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Inventory restructuring charges, net of tax | 174 | (165 | ) | — | 396 | 405 | — | 3,316 | 1,857 | — | 5,173 | |||||||||||||||||||
Impairment charges, net of tax | — | — | — | 4,261 | 4,261 | — | — | — | 726 | 726 | ||||||||||||||||||||
Special (recoveries), net of tax | — | — | (3,151 | ) | — | (3,151 | ) | (1,391 | ) | — | — | — | (1,391 | ) | ||||||||||||||||
Special charges, net of tax | 961 | 1,541 | 1,870 | 3,291 | 7,663 | 675 | 848 | 295 | 9,307 | 11,125 | ||||||||||||||||||||
NET INCOME | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 8,825 | $ | 47,121 | $ | 14,632 | $ | 11,926 | $ | 14,675 | $ | 9,155 | $ | 50,386 | ||||||||||
ADJUSTED EARNINGS PER SHARE (Diluted) | $ | 0.52 | $ | 0.81 | $ | 0.93 | $ | 0.95 | $ | 3.21 | $ | 0.78 | $ | 0.91 | $ | 0.95 | $ | 1.08 | $ | 3.72 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Inventory restructuring charges, net of tax | 0.01 | (0.01 | ) | — | 0.02 | 0.02 | — | 0.19 | 0.10 | — | 0.29 | |||||||||||||||||||
Impairment charges, net of tax | — | — | — | 0.24 | 0.24 | — | — | — | 0.04 | 0.04 | ||||||||||||||||||||
Special (recoveries), net of tax | — | — | (0.18 | ) | — | (0.18 | ) | (0.08 | ) | — | — | — | (0.08 | ) | ||||||||||||||||
Special charges, net of tax | 0.06 | 0.10 | 0.11 | 0.19 | 0.46 | 0.04 | 0.05 | 0.02 | 0.52 | 0.63 | ||||||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.45 | $ | 0.72 | $ | 1.00 | $ | 0.50 | $ | 2.67 | $ | 0.82 | $ | 0.67 | $ | 0.83 | $ | 0.51 | $ | 2.84 | ||||||||||
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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 | ||||||||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | |||||||||||||||||||||
EBITDA | $ | 17,054 | $ | 24,407 | $ | 23,368 | $ | 11,914 | $ | 86,272 | $ | 26,230 | $ | 21,140 | $ | 24,202 | $ | 13,904 | $ | 85,475 | ||||||||||
LESS: | ||||||||||||||||||||||||||||||
Interest expense, net | (787 | ) | (838 | ) | (745 | ) | (792 | ) | (3,162 | ) | (918 | ) | (891 | ) | (436 | ) | (407 | ) | (2,652 | ) | ||||||||||
Depreciation | (4,009 | ) | (4,026 | ) | (3,908 | ) | (4,091 | ) | (16,034 | ) | (4,069 | ) | (4,116 | ) | (3,978 | ) | (4,283 | ) | (16,446 | ) | ||||||||||
Amortization | (758 | ) | (751 | ) | (764 | ) | (766 | ) | (3,039 | ) | (786 | ) | (805 | ) | (776 | ) | (749 | ) | (3,116 | ) | ||||||||||
(Provision) Benefit for income taxes | (3,592 | ) | (6,124 | ) | (4,903 | ) | (2,297 | ) | (16,916 | ) | (5,825 | ) | (3,402 | ) | (4,337 | ) | 690 | (12,875 | ) | |||||||||||
NET INCOME | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 8,825 | $ | 47,121 | $ | 14,632 | $ | 11,926 | $ | 14,675 | $ | 9,155 | $ | 50,386 | ||||||||||
ADJUSTED EBITDA | $ | 18,682 | $ | 26,419 | $ | 27,850 | $ | 29,441 | $ | 102,392 | $ | 25,073 | $ | 27,536 | $ | 27,530 | $ | 26,789 | $ | 106,927 | ||||||||||
Inventory restructuring charges | (250 | ) | 242 | — | (638 | ) | (646 | ) | — | (5,139 | ) | (2,850 | ) | — | (7,989 | ) | ||||||||||||||
Impairment charges | — | — | — | (6,872 | ) | (6,872 | ) | — | — | — | (726 | ) | (726 | ) | ||||||||||||||||
Special (recoveries) | — | — | 3,151 | — | 3,151 | 2,243 | — | — | — | 2,243 | ||||||||||||||||||||
Special charges | (1,378 | ) | (2,254 | ) | (2,961 | ) | (5,160 | ) | (11,753 | ) | (1,086 | ) | (1,257 | ) | (478 | ) | (12,159 | ) | (14,980 | ) | ||||||||||
Interest expense, net | (787 | ) | (838 | ) | (745 | ) | (792 | ) | (3,162 | ) | (918 | ) | (891 | ) | (436 | ) | (407 | ) | (2,652 | ) | ||||||||||
Depreciation | (4,009 | ) | (4,026 | ) | (3,908 | ) | (4,091 | ) | (16,034 | ) | (4,069 | ) | (4,116 | ) | (3,978 | ) | (4,283 | ) | (16,446 | ) | ||||||||||
Amortization | (758 | ) | (751 | ) | (764 | ) | (766 | ) | (3,039 | ) | (786 | ) | (805 | ) | (776 | ) | (749 | ) | (3,116 | ) | ||||||||||
(Provision) Benefit for income taxes | (3,592 | ) | (6,124 | ) | (4,903 | ) | (2,297 | ) | (16,916 | ) | (5,825 | ) | (3,402 | ) | (4,337 | ) | 690 | (12,875 | ) | |||||||||||
NET INCOME | $ | 7,908 | $ | 12,668 | $ | 17,720 | $ | 8,825 | $ | 47,121 | $ | 14,632 | $ | 11,926 | $ | 14,675 | $ | 9,155 | $ | 50,386 | ||||||||||
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