CIRCOR International, Inc. (NYSE: CIR), a leading provider of
flow control solutions and other highly engineered products for
markets including oil & gas, power generation, industrial and
aerospace & defense, today announced financial results for the
third quarter ended October 2, 2016.
Third-Quarter 2016 Highlights
- Revenue of $135 million, GAAP EPS of
$0.27 and Adjusted EPS of $0.46
- Operating cash flow of $21 million and
Free Cash Flow of $17.5 million
- Energy business diversified through the
acquisition of Critical Flow Solutions (CFS)
- CIRCOR simplification continues with
new organization structure
“Despite the cyclical headwinds facing our Energy business, we
continue to focus on what we control. In the third quarter, we
negotiated an important strategic acquisition, further reduced
costs, and improved our working capital and cash flow performance,”
said Scott Buckhout, President and Chief Executive Officer. “The
supplier quality issues we noted in the second quarter in our
Aerospace and Defense business have been resolved. We expect
stronger performance from this business going forward.”
On October 13, 2016, CIRCOR closed on the acquisition of
Critical Flow Solutions. This acquisition is consistent with the
Company’s disciplined capital deployment strategy and diversifies
CIRCOR’s revenue base as it further penetrates the stable
downstream refining market. CFS brings an impressive portfolio of
high technology valves and automation equipment for severe-service
applications. CFS is generating strong margins due to its
proprietary technology, large installed base, and high proportion
of aftermarket sales.
“In addition, we are taking further actions to optimize our
organizational structure to drive top-line growth and better align
our businesses with end markets,” added Buckhout. “Going forward,
our new ‘Energy’ segment, including our recent acquisition of CFS,
will primarily serve the oil & gas market. The second segment,
‘Advanced Flow Solutions,’ will include the current Aerospace &
Defense businesses plus the Control Valves product line out of our
legacy Energy Group. We expect to complete this reorganization in
the fourth quarter and report the year-end results consistent with
the new organizational structure.”
Advanced Flow Solutions (AFS) brings together CIRCOR’s Aerospace
& Defense and Control Valves product lines under one management
structure. AFS will be a diversified flow control technology
platform that will help CIRCOR accelerate growth in the aerospace,
defense, power, process, and general industrial end markets. In
addition, this new Group will serve as the platform to acquire
innovative technologies in broader flow control adjacencies. Sumit
Mehrotra will lead this new Group, which will be headquartered in
Corona, California. Mr. Mehrotra currently serves as CIRCOR’s
Senior Vice President for Global Supply Chain & Product
Management.
“As we enter the final quarter of the year, we remain focused on
executing our simplification and margin improvement actions. We are
committed to creating long-term value for our shareholders by
investing in both organic growth and acquisitions, expanding
margins, generating strong free cash flow, and being disciplined
with capital deployment,” concluded Buckhout.
Fourth-Quarter 2016 Guidance
For the fourth quarter of 2016, the Company will provide its
guidance during the conference call later today.
Selected Consolidated Results (unaudited)
($ millions except EPS) Q3 2016
Q3 2015 Change Revenue
$ 134.8 $ 159.3 (15)%
GAAP
Operating Income $ 3.5 $ (3.5) 200%
Adjusted
Operating Income1 $ 8.2 $ 16.2 (49)%
GAAP Operating Margin 2.6% (2.2)% 480 bps
Adjusted
Operating Margin1 6.1% 10.1% (400) bps
GAAP
Earnings Per Share (Diluted) $ 0.27 $ (0.49) 155%
Adjusted Earnings Per Share (Diluted)1 $
0.46 $ 0.64 (28)%
Operating Cash Flow $
21.2 $ 5.0 324%
Free Cash Flow2 $
17.5 $ 2.2 NM
Orders $ 111.3 $ 128.5
(13)%
Segment Results
($ millions) Q3 2016
Q3 2015 Change Energy
Revenue
$ 99.8 $ 122.9 (19)%
GAAP Operating Margin
7.7% (0.6)% 830 bps
Adjusted Operating Margin1
11.4% 15.4% (400) bps
Orders $ 78.5 $
94.2 (17)%
Aerospace & Defense Revenue
$ 35.0 $ 36.4 (4)%
GAAP Operating Margin
6.7% 8.9% (220) bps
Adjusted Operating Margin1
9.7% 9.1% 60 bps
Orders $
32.8
$ 34.3 (4)%
1. Consolidated and Segment Results for Q3 2016 exclude special,
restructuring and impairment charges totaling $4.7 million. This
includes (i) $1.9 million for non-cash acquisition-related
intangible amortization expense; (ii) $0.8 million related to the
exit of the Company’s California machine shop; (iii) $0.4 million
related to the Company’s Brazil exit; and (iv) $1.6 million related
to the Company’s suspension of manufacturing operations in China
and other restructuring programs. Q3 2015 results exclude special,
restructuring and impairment charges totaling $19.7 million
including (i) $16.9 million related to the closure of the Brazil
manufacturing operations including restructuring-related inventory
charge of $6.4 million; (ii) $2.5 million for Schroedahl intangible
amortization expense; and (iii) restructuring costs of $0.4
million.
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 InformationCIRCOR International will hold
a conference call to review its financial results today, October
28, 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 MeasuresAdjusted net income,
adjusted earnings per share (diluted), adjusted operating income,
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 StatementThis press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Reliance should not be
placed on forward-looking statements because they involve unknown
risks, uncertainties and other factors, which are, in some cases,
beyond the control of CIRCOR. Any statements in this press release
that are not statements of historical fact are forward-looking
statements, including, but not limited to, those relating to
CIRCOR’s future performance, including the realization of cost
reductions from restructuring activities. 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 flow control solutions and
other highly engineered products and sub-systems for markets
including oil & gas, power generation, industrial 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.
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(LOSS)
(in thousands, except per share
data)
UNAUDITED
Three Months Ended Nine
Months Ended October 2, 2016 October 4,
2015 October 2, 2016 October 4,
2015 Net revenues $ 134,833 $ 159,258 $ 432,023 $ 492,023 Cost
of revenues 92,479 113,865 298,005 343,187
GROSS PROFIT 42,354 45,393 134,018 148,836 Selling, general
and administrative expenses 36,002 38,143 110,290 119,344
Impairment charges 208 2,502 208 2,502 Special charges, net 2,631
8,277 9,165 13,098 OPERATING INCOME
(LOSS) 3,513 (3,529 ) 14,355 13,892 Other
expense (income): Interest expense, net 605 828 1,841 2,274 Other
expense (income), net 163 (587 ) (914 ) (1,197 ) TOTAL OTHER
EXPENSE, NET 768 241 927 1,077 INCOME
(LOSS) BEFORE INCOME TAXES 2,745 (3,770 ) 13,428 12,816 (Benefit
from) Provision for income taxes (1,673 ) 4,308 1,325
10,109 NET INCOME (LOSS) $ 4,418 $ (8,078 ) $ 12,103
$ 2,707 Earnings (Loss) per common share: Basic $
0.27 $ (0.49 ) $ 0.74 $ 0.16 Diluted $ 0.27 $ (0.49 ) $ 0.73 $ 0.16
Weighted average number of common shares outstanding: Basic 16,427
16,485 16,411 16,989 Diluted 16,629 16,485 16,568 17,029 Dividends
declared per common share $ 0.0375 $ 0.0375 $ 0.1125 $ 0.1125
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands)
UNAUDITED
Nine Months Ended October 2, 2016
October 4, 2015 OPERATING ACTIVITIES
Net income $ 12,103 $ 2,707 Adjustments to reconcile net income to
net cash provided by (used in) operating activities: Depreciation
9,614 10,676 Amortization 7,586 6,742 Bad debt (recovery) expense
(928 ) 2,832 Loss on write down of inventory 5,784 11,808
Compensation expense of share-based plans 4,200 5,811 Tax effect of
share-based plan compensation 123 (259 ) Loss on sale or write down
of property, plant and equipment 3,238 478 Impairment charges 208
2,502 Gain on sale of business — (1,044 ) Changes in operating
assets and liabilities, net of effects of acquisition and
disposition: Trade accounts receivable 15,422 8,118 Inventories
20,216 (29,260 ) Prepaid expenses and other assets 545 (2,801 )
Accounts payable, accrued expenses and other liabilities (39,161 )
(21,669 ) Net cash provided by (used in) operating activities
38,950 (3,359 )
INVESTING ACTIVITIES Purchases of
property, plant and equipment (10,776 ) (9,604 ) Proceeds from the
sale of property, plant and equipment 1,186 1,200 Proceeds from the
sale of affiliate — 2,759 Business acquisition, net of cash
acquired — (79,983 ) Net cash used in investing activities
(9,590 ) (85,628 )
FINANCING ACTIVITIES Proceeds from
long-term debt 90,589 241,619 Payments of long-term debt (88,740 )
(141,830 ) Dividends paid (1,873 ) (1,937 ) Proceeds from the
exercise of stock options 192 259 Tax effect of share-based plan
compensation (123 ) 259 Purchases of common stock — (69,517
) Net cash provided by financing activities 45 28,853
Effect of exchange rate changes on cash and cash equivalents 983
(7,416 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
30,388 (67,550 ) Cash and cash equivalents at beginning of period
54,541 121,372 CASH AND CASH EQUIVALENTS AT END OF
PERIOD $ 84,929 $ 53,822
CIRCOR
INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
UNAUDITED
October 2, 2016 December 31,
2015 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 84,929
$ 54,541 Trade accounts receivable, less allowance for doubtful
accounts of $7,570 and $8,290, respectively 112,122 125,628
Inventories 153,470 177,840 Prepaid expenses and other current
assets 18,001 16,441 Total Current Assets 368,522
374,450 PROPERTY, PLANT AND EQUIPMENT, NET 81,327
87,029 OTHER ASSETS: Goodwill 117,167 115,452 Intangibles, net
40,953 48,981 Deferred income taxes 42,713 36,799 Other assets
5,983 7,204 TOTAL ASSETS $ 656,665 $ 669,915
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES:
Accounts payable $ 50,500 $ 64,284 Accrued expenses and other
current liabilities 39,950 52,878 Accrued compensation and benefits
17,386 18,424 Income taxes payable 5,956 6,585 Total
Current Liabilities 113,792 142,171 LONG-TERM DEBT 92,400 90,500
DEFERRED INCOME TAXES 9,837 10,424 OTHER NON-CURRENT LIABILITIES
24,038 26,043 SHAREHOLDERS’ EQUITY: Common stock 178 177 Additional
paid-in capital 287,919 283,621 Retained earnings 268,169 257,939
Common treasury stock, at cost (74,972 ) (74,972 ) Accumulated
other comprehensive loss, net of tax (64,696 ) (65,988 ) Total
Shareholders’ Equity 416,598 400,777 TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY $ 656,665 $ 669,915
CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in millions)
UNAUDITED
Three Months Ended
Nine Months Ended October 2, 2016
October 4, 2015 October 2, 2016
October 4, 2015 ORDERS (1)
Energy $ 78.5 $ 94.2 $ 266.5 $ 348.7 Aerospace & Defense
32.8
34.3 117.0 103.9 Total orders $
111.3
$ 128.5 $ 383.5 $ 452.6
BACKLOG
(2) October 2, 2016 October 4, 2015
Energy $ 120.9 $ 210.6 Aerospace & Defense 99.3 94.1
Total backlog $ 220.2 $ 304.7
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.
CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except
percentages)
UNAUDITED
2015 2016 1ST QTR 2ND
QTR 3RD QTR 4TH QTR
TOTAL 1ST QTR 2ND QTR
3RD QTR YTD NET REVENUES
Energy $ 127,586 $ 127,230 $
122,905 $ 124,412 $ 502,133 $ 112,620 $ 110,678 $ 99,798 $ 323,096
Aerospace & Defense 38,274 39,676
36,353 39,832 154,134
38,178 35,714 35,035
108,927 Total $ 165,860 $ 166,906
$ 159,258 $ 164,243 $ 656,267
$ 150,798 $ 146,392 $
134,833 $ 432,023
OPERATING MARGIN
Energy 13.8 % 13.4 % 15.4 % 13.4 % 14.0 % 12.6 % 13.0 % 11.4 % 12.3
% Aerospace & Defense 8.0 % 8.8 % 9.1 %
10.4 % 9.1 % 9.3 % 8.4 % 9.7 %
9.2 % Segment operating margin 12.4 % 12.3 % 14.0 % 12.7 % 12.8 %
11.8 % 11.9 % 10.9 % 11.5 % Corporate expenses (3.6 )% (3.3
)% (3.8 )% (2.5 )% (3.3 )% (4.3 )%
(3.7 )% (4.8 )% (4.3 )%
Adjusted operating
margin 8.8 % 9.0 % 10.1 % 10.2 % 9.5 % 7.5 % 8.1 % 6.1 % 7.3 %
Restructuring related inventory charges — % 1.2 % 4.0 % 0.6 % 1.4 %
1.3 % 0.1 % — % 0.5 % Impairment charges — % — % 1.6 % — % 0.4 % —
% — % 0.2 % 0.1 % Special restructuring charges, net 0.9 % 1.9 %
0.2 % (0.2 )% 0.7 % 0.8 % 2.2 % 1.7 % 1.5 % Special acquisition
amortization — % 1.3 % 1.6 % 1.4 % 1.0 % 1.2 % 1.3 % 1.4 % 1.3 %
Special other charges, net of recoveries — % 0.1 % 5.0 % 1.0 % 1.5
% 0.5 % 0.9 % 0.3 % 0.6 % Brazil restatement impact 0.4 %
1.5 % — % — % 0.5 % — % — %
— % — %
Total GAAP operating margin 7.4 %
3.0 % (2.2 )% 7.5 % 4.0 % 3.6 %
3.7 % 2.6 % 3.3 %
CIRCOR
INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except percentages and
per share data)
UNAUDITED
2015 2016
1ST QTR 2ND QTR 3RD QTR
4TH QTR TOTAL 1ST QTR
2ND QTR 3RD QTR YTD INCOME
STATEMENT
Energy $ 17,550 $ 17,008 $ 18,932 $ 16,724 $ 70,214 $ 14,186 $
14,346 $ 11,357 $ 39,888 Aerospace & Defense 3,045
3,494 3,298 4,146
13,982 3,562 3,011 3,406
9,979 Segment operating income 20,595 20,502
22,230 20,870 84,197 17,748 17,357 14,763 49,867 Corporate expenses
(6,034 ) (5,477 ) (6,078 ) (4,122 )
(21,710 ) (6,488 ) (5,431 ) (6,522 )
(18,441 )
Adjusted operating income 14,561 15,025 16,152
16,748 62,487 11,260 11,926 8,240 31,426 Restructuring related
inventory charges — 2,005 6,412 974 9,391 1,958 75 — 2,033
Impairment charges — — 2,502 — 2,502 — — 208 208 Special
restructuring charges, net 1,512 3,127 342 (347 ) 4,634 1,163 3,259
2,252 6,674 Special acquisition amortization — 2,110 2,490 2,238
6,838 1,868 1,911 1,888 5,667 Special other charges, net of
recoveries (1 ) 183 7,935 1,603 9,720 776 1,334 379 2,489 Brazil
restatement impact 719 2,509 —
— 3,228 — —
— —
Total GAAP operating income
(loss) 12,331 5,090 (3,529 ) 12,281 26,174 5,495 5,347 3,513
14,355 INTEREST EXPENSE, NET (640 ) (805 ) (828 ) (570 ) (2,844 )
(631 ) (605 ) (605 ) (1,841 ) OTHER INCOME (EXPENSE), NET 506
104 587 (2,099 )
(902 ) 528 549 (163 ) 914
PRETAX INCOME (LOSS) 12,197 4,389 (3,770 ) 9,612 22,428
5,392 5,291 2,745 13,428 (PROVISION FOR) BENEFIT FROM INCOME TAXES
(3,284 ) (2,517 ) (4,308 ) (2,456 )
(12,565 ) (1,520 ) (1,478 ) 1,673
(1,325 ) EFFECTIVE TAX RATE 26.9 % 57.3 % (114.3 )% 25.6 %
56.0 % 28.2 % 27.9 % (61.0 )% 9.9 %
NET INCOME (LOSS) $
8,913 $ 1,872 $ (8,078 ) $ 7,156
$ 9,863 $ 3,872 $ 3,813
$ 4,418 $ 12,103 Weighted
Average Common Shares Outstanding (Diluted) 17,712 16,900 16,485
16,555 16,913 16,481 16,595 16,629 16,568
EARNINGS (LOSS) PER
COMMON SHARE (Diluted) $ 0.50 $ 0.11
$ (0.49 ) $ 0.43 $ 0.58 $
0.23 $ 0.23 $ 0.27 $ 0.73
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE
MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE
TERMS
(in thousands, except
percentages)
UNAUDITED
2015 2016
1ST QTR 2ND QTR 3RD QTR
4TH QTR TOTAL 1ST QTR
2ND QTR 3RD QTR YTD FREE CASH
FLOW AS % OF NET INCOME (LOSS) (207 )%
239 % (27 )% 397
% 169 % 96 %
214 % 395 % 243
% FREE CASH FLOW $ (18,415 )
$ 4,483 $ 2,169 $ 28,403
$ 16,640 $ 3,720 $ 8,174
$ 17,466 $ 29,360 ADD: Capital
expenditures, net of sale proceeds 1,983 3,584
2,837 2,098 10,502
3,934 1,926 3,730 9,590
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES $
(16,432 ) $ 8,067 $ 5,006 $
30,501 $ 27,142 $ 7,654 $
10,100 $ 21,196 $ 38,950
NET
(CASH) DEBT $ (66,337 ) $
59,051 $ 57,277 $ 35,959
$ 35,959 $ 31,220 $
24,630 $ 7,471 $ 7,471 ADD: Cash
& cash equivalents 103,883 55,027
53,822 54,541 54,541
66,580 72,970 84,929
84,929 TOTAL DEBT $ 37,546 $ 114,078
$ 111,099 $ 90,500 $ 90,500
$ 97,800 $ 97,600 $
92,400 $ 92,400 TOTAL SHAREHOLDERS' EQUITY $
462,384 $ 421,070 $ 407,979 $ 400,777 $ 400,777 $ 414,107 $ 411,367
$ 416,598 $ 416,598
DEBT AS % OF EQUITY 8
% 27 % 27 % 23 %
23 % 24 % 24 % 22
% 22 % NET DEBT AS % OF EQUITY
(14 )% 14 % 14 % 9
% 9 % 8 % 6 %
2 % 2 % CIRCOR INTERNATIONAL,
INC.
RECONCILIATION OF KEY PERFORMANCE
MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE
TERMS
(in thousands, except percentages and
per share data)
UNAUDITED
2015
2016
1ST QTR 2ND QTR 3RD QTR
4TH QTR TOTAL 1ST QTR
2ND QTR 3RD QTR YTD ADJUSTED
NET INCOME $ 10,564 $ 9,357 $ 10,635 $
10,512 $ 41,068 $ 8,683 $ 8,781 $ 7,626
$ 25,090 LESS: Restructuring related inventory charges — 2,005
6,412 974 9,391 1,958 75 — 2,033 Impairment charges — — 2,502 —
2,502 — — 208 208 Special restructuring charges, net 1,512 3,127
342 (347 ) 4,634 1,163 3,259 2,252 6,674 Special acquisition
amortization — 2,110 2,490 2,238 6,838 1,868 1,911 1,888 5,667
Special other charges, net of recoveries (1 ) 183 7,935 1,603 9,720
776 1,334 379 2,489 Brazil restatement impact 719 2,509 — — 3,228 —
— — — Income tax impact (579 ) (2,449 ) (968 )
(1,112 ) (5,108 ) (954 ) (1,611 )
(1,519 ) (4,084 )
NET INCOME (LOSS) $ 8,913
$ 1,872 $ (8,078 ) $ 7,156
$ 9,863 $ 3,872 $ 3,813
$ 4,418 $ 12,103
ADJUSTED
EARNINGS PER SHARE (Diluted) $ 0.60 $
0.55 $ 0.64 $ 0.63 $
2.43 $ 0.52 $ 0.53 $
0.46 $ 1.51 LESS: Restructuring related
inventory charges — 0.12 0.39 0.06 0.57 0.12 — — 0.12 Impairment
charges — — 0.15 — 0.15 — — 0.01 0.01 Special restructuring
charges, net 0.09 0.19 0.02 (0.02 ) 0.28 0.07 0.20 0.14 0.40
Special acquisition amortization — 0.12 0.15 0.14 0.41 0.11 0.12
0.11 0.34 Special other charges, net of recoveries — 0.01 0.48 0.10
0.59 0.05 0.08 0.02 0.15 Brazil restatement impact 0.04 0.15 — —
0.19 — — — — Income tax impact (0.03 ) (0.15 ) (0.06
) (0.07 ) (0.31 ) (0.06 ) (0.10 )
(0.09 ) (0.25 )
EARNINGS (LOSS) PER COMMON SHARE
(Diluted)
$ 0.50 $ 0.11 $ (0.49 ) $ 0.43
$ 0.58 $ 0.23 $ 0.23
$ 0.27 $ 0.73
CIRCOR
INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE
MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE
TERMS
(in thousands, except
percentages)
UNAUDITED
2015 2016
1ST QTR 2ND QTR 3RD QTR
4TH QTR TOTAL 1ST QTR
2ND QTR 3RD QTR YTD ADJUSTED
EBITDA $ 19,299 $ 19,474 $ 20,980 $ 18,927
$ 78,681 $ 15,712 $ 16,346 $ 11,815 $
43,873 LESS: Restructuring related inventory charges — (2,005 )
(6,412 ) (974 ) (9,391 ) (1,958 ) (75 ) — (2,033 ) Impairment
charges — — (2,502 ) — (2,502 ) — — (208 ) (208 ) Special
restructuring charges, net (1,512 ) (3,127 ) (342 ) 347 (4,634 )
(1,163 ) (3,259 ) (2,252 ) (6,674 ) Special other charges, net of
recoveries 1 (183 ) (7,935 ) (1,603 ) (9,720 ) (776 ) (1,334 ) (379
) (2,489 ) Brazil restatement impact (719 ) (2,509 )
— — (3,228 ) — —
— —
EBITDA $ 17,068
$ 11,650 $ 3,789 $ 16,698
$ 49,206 $ 11,815 $
11,678 $ 8,976 $ 32,469 LESS:
Interest expense, net (641 ) (805 ) (828 ) (570 ) (2,844 ) (631 )
(605 ) (605 ) (1,841 ) Depreciation (3,521 ) (3,629 ) (3,526 )
(3,578 ) (14,254 ) (3,263 ) (3,213 ) (3,138 ) (9,614 ) Amortization
(710 ) (2,827 ) (3,205 ) (2,939 ) (9,681 ) (2,529 ) (2,569 ) (2,488
) (7,586 ) (Provision for) benefit from income taxes (3,284 )
(2,517 ) (4,308 ) (2,456 ) (12,565 )
(1,520 ) (1,478 ) 1,673 (1,325 )
NET
INCOME (LOSS) $ 8,913 $ 1,872 $
(8,078 ) $ 7,156 $ 9,863 $ 3,872
$ 3,813 $ 4,418 $ 12,103
CIRCOR INTERNATIONAL, INC.
SUPPLEMENTAL SEGMENT DATA
(in thousands, except
percentages)
UNAUDITED
2015 2016 1ST QTR 2ND
QTR 3RD QTR 4TH QTR
TOTAL 1ST QTR 2ND QTR
3RD QTR YTD Energy
A&D Energy A&D
Energy A&D Energy
A&D Energy A&D
Energy A&D Energy
A&D Energy A&D
Energy A&D ADJUSTED OPERATING
MARGIN 13.8 % 8.0 % 13.4 % 8.8 %
15.4 % 9.1 % 13.4 % 10.4 % 14.0 %
9.1 % 12.6 % 9.3 % 13.0 % 8.4 %
11.4 % 9.7 % 12.3 % 9.2 % Restructuring
related inventory charges — % — % 0.1 % 4.7 % 5.2 % — % 0.4 % 1.2 %
1.4 % 1.5 % 1.7 % 0.1 % 0.1 % — % — % — % 0.6 % — % Impairment
charges — % — % — % — % 2.0 % — % — % — % 0.5 % — % — % — % — % — %
0.2 % — % 0.1 % — % Special restructuring charges, net 0.3 % 3.1 %
2.2 % 0.8 % 0.2 % 0.2 % (0.3 )% 0.1 % 0.6 % 1.0 % (0.2 )% 3.8 % 0.8
% 6.6 % 1.2 % 3.0 % 0.6 % 4.5 % Special acquisition amortization —
% — % 1.7 % — % 2.0 % — % 1.8 % — % 1.4 % — % 1.7 % — % 1.7 % — %
1.9 % — % 1.8 % — % Special other charges, net of recoveries 0.4 %
(2.6 )% 0.2 % (0.2 )% 6.5 % — % 0.7 % — % 1.9 % (0.7 )% 0.7 % — %
1.2 % — % 0.4 % — % 0.8 % — % Brazil restatement impact 0.6 %
— % 2.0 % — % — % — % — %
— % 0.6 % — % — % — % — %
— % — % — % — % — %
GAAP
OPERATING MARGIN 12.5 % 7.5 % 7.2 % 3.5 %
(0.6 )% 8.9 % 10.9 % 9.1 % 7.6 %
7.2 % 8.8 % 5.5 % 9.1 % 1.8 %
7.7 % 6.7 % 8.6 % 4.7 %
2015 2016 1ST QTR 2ND QTR
3RD QTR 4TH QTR TOTAL
1ST QTR 2ND QTR 3RD QTR
YTD Energy A&D
Energy A&D Energy
A&D Energy A&D
Energy A&D Energy
A&D Energy A&D
Energy A&D Energy
A&D ADJUSTED OPERATING INCOME $ 17,550 $
3,045 $ 17,008 $ 3,494 $ 18,932 $ 3,298
$ 16,724 $ 4,146 $ 70,214 $ 13,982 $
14,186 $ 3,562 $ 14,346 $ 3,011 $
11,357 $ 3,406 $ 39,888 $ 9,979
Restructuring relatedinventory charges
— — 153 1,852 6,412 — 508 466 7,073 2,318 1,919 39 74 — — — 1,993
39
Impairment charges
— — — — 2,502 — — — 2,502 — — — — — 208 — 208 —
Special restructuringcharges, net
343 1,169 2,818 309 279 63 (394 ) 47 3,046 1,588 (278 ) 1,441 900
2,359 1,191 1,061 1,814 4,861
Special acquisitionamortization
— — 2,110 — 2,490 — 2,238 — 6,838 — 1,868 — 1,911 — 1,888 — 5,667 —
Special other charges, netof
recoveries
556 (977 ) 248 (65 ) 7,935 — 828 — 9,567 (1,042 ) 774 — 1,335 — 379
— 2,488 —
Brazil restatement impact
719 — 2,509 —
— — — —
3,228 — — —
— — — —
— —
GAAP OPERATING INCOME
(LOSS)
$ 15,932 $ 2,853 $ 9,170
$ 1,398 $ (686 ) $ 3,235 $
13,544 $ 3,633 $ 37,960 $
11,118 $ 9,903 $ 2,082 $
10,126 $ 652 $ 7,690 $
2,345 $ 27,719 $ 5,079
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161028005401/en/
CIRCOR InternationalRajeev Bhalla, 781-270-1200Executive Vice
President & Chief Financial Officer
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