CIRCOR International, Inc. (NYSE: CIR), one of the world’s
leading providers of mission critical flow control products and
services for the Industrial and Aerospace & Defense markets,
today announced GAAP and adjusted financial results for the first
quarter ended April 4, 2021.
First Quarter 2021 Overview:
- Strong orders of $227 million, up 35% sequentially, with
improvement across end markets
- Orders up 9% reported and 7% organically
- Industrial orders of $154 million, up 13% reported and 11%
organically
- Aerospace & Defense orders of $73 million, up 1% reported
and flat organically
- Revenue of $181 million, down (6)% reported and (8)%
organically
- Industrial revenue of $121 million, down (5)% reported and (6)%
organically
- Aerospace & Defense revenue of $60 million, down (8)%
reported and (10)% organically
- GAAP operating margin of 0.2%; Adjusted operating margin of
6.9%, up 110 bps
- GAAP loss per share of $(0.35); Adjusted earnings per share of
$0.24, up 20%
- GAAP operating cash flow of $(18) million; Free cash flow of
$(21) million, up 23%
CIRCOR President and CEO Scott Buckhout said, “Our team
delivered solid first quarter 2021 results highlighted by
sequential orders growth of 35%. Notably, we secured several large
orders in our Defense business and saw recovery across virtually
all industrial end markets. We are well positioned to deliver our
2021 commitments."
Mr. Buckhout continued, "We continue to make progress on our
strategic priorities. With eight new product launches in the first
quarter, we are on track to deliver 45 new products in 2021 that
will further improve our product line vitality and support our
long-term organic growth targets. In addition, we expect continued
margin expansion and free cash flow improvement through the year as
we drive value-based pricing, and further improve our operations
using the CIRCOR Operating System.”
Mr. Buckhout concluded, "With our $421 million backlog, we’re
confident that we will deliver the high end of our 2021 organic
revenue growth and adjusted EPS guidance provided in March. Going
forward, we continue to focus on creating long-term value for
shareholders by positioning the Company for growth, expanding
margins, generating strong free cash flow, and de-levering the
balance sheet.”
2Q'21 Guidance Update
In the second quarter of 2021, CIRCOR expects reported revenue
to increase from 0 to 2% and organic revenue to decline (2) - (4)%.
On a reported basis, Industrial revenue is expected to grow 1 to 4%
led by our shorter cycle businesses and Aerospace & Defense
revenue is expected to decrease 0 to (5)% driven by continued lower
demand in Commercial Aerospace and timing of Defense shipments. In
both businesses, strong orders in the first quarter will lead to
higher deliveries in the second half of 2021. In addition, CIRCOR
expects adjusted EPS of $0.30 to $0.35 and free cash flow is
expected to be breakeven to slightly negative.
2021 Guidance Update
For the full year of 2021, CIRCOR now expects organic revenue
growth in the range of 2 to 4% (previously 0 to 4%) and Adjusted
EPS of $2.10 to $2.30 (previously $2.00 to $2.20). This updated
guidance reflects our latest view of the Industrial business, which
is now expected to grow low to mid-single digits, and increased
confidence in our Aerospace & Defense outlook. We continue to
expect adjusted net income to free cash flow conversion to be 85%
to 95% and will use 2021 free cash flow to deleverage CIRCOR.
Presentation slides that provide supporting information to this
guidance and first-quarter results are posted on the “Investors”
section of the Company’s website and will be discussed during the
conference call at 9:00 a.m. ET today.
Conference Call Information
CIRCOR International will hold a conference call to review its
financial results at 9:00 a.m. ET today, May 12, 2021. To listen to
the live conference call and view the accompanying presentation
slides, please visit “Webcasts & Presentations” in the
“Investors” portion of CIRCOR’s website. The live call also can be
accessed by dialing (877) 407-5790 or (201) 689-8328. Participants
are encouraged to dial in to the call at least 15 minutes prior to
the start time. The webcast will be archived on the Company’s
website for one year.
Selected Preliminary
Consolidated Results
($ millions except
EPS)
Q1 2021
Q1 2020
Change
Revenue
$
180.7
$
192.2
-6
%
Revenue - excluding divested
businesses1
180.7
187.3
-4
%
GAAP operating (loss)
income
0.4
(73.4
)
101
%
Adjusted operating
income2
12.4
11.1
12
%
GAAP operating margin
0.2
%
(38.2
)%
3840 bps
Adjusted operating
margin2
6.9
%
5.8
%
110 bps
Adjusted operating margin ex
divestitures2
6.9
%
5.9
%
100 bps
GAAP loss per share
(diluted)
$
(0.35
)
$
(3.96
)
91
%
Adjusted earnings per share
(diluted)2
$
0.24
$
0.20
20
%
Operating cash flow
(17.7
)
(23.9
)
26
%
Free cash flow3
(21.1
)
(27.4
)
23
%
Orders
226.7
208.5
9
%
Orders - excluding divested
businesses1
226.7
204.0
11
%
Segment Results
($ in millions)
Q1 2021
Q1 2020
Change
Aerospace &
Defense
Revenue
$
60.0
$
65.5
-8
%
Segment operating
income
10.7
12.5
-14
%
Segment operating
margin
17.8
%
19.1
%
-130 bps
Orders
73.0
72.0
1
%
Industrial
Revenue
$
120.7
$
126.7
-5
%
Revenue - excluding divested
businesses1
120.7
121.8
-1
%
Segment operating
income
9.7
5.2
88
%
Segment operating margin
(adjusted)
8.1
%
4.2
%
380 bps
Orders
153.7
136.4
13
%
Orders - excluding divested
businesses1
153.7
132.0
16
%
- Orders and revenue excluding divested businesses are non-GAAP
measures and are calculated by subtracting the orders and revenues
generated by the divested businesses during the periods prior to
their divestiture from reported orders and revenues. Divested
businesses include Instrumentation & Sampling (all Industrial)
which was sold during Q1 2020.
- Adjusted consolidated and segment results for Q1 2021 exclude
net loss from discontinued operations of $0.2 million and net loss
from non-cash acquisition-related intangible amortization, special
and restructuring charges totaling $12.1 million. These charges
include: (i) $12.9 million for non-cash acquisition-related
intangible amortization and depreciation expense; and (ii) $0.8
million of other special and restructuring recoveries. Adjusted
consolidated and segment results for Q1 2020 exclude income from
discontinued operations of $9.2 million and net loss from non-cash
acquisition-related intangible amortization, special and
restructuring charges and goodwill impairment charge totaling $84.5
million ($92.2 million, net of tax). These charges include: (i)
$11.2 million charge for non-cash acquisition-related intangible
amortization and depreciation expense; (ii) $2.4 million of
professional fees associated with an unsolicited tender offer to
acquire all outstanding shares of the Company’s common stock; (iii)
$53.2 million net gain from the divestiture of our Instrumentation
& Sampling business; (iv) $3.5 million amortization of debt
issuance fee; (v) $4.4 million of other special and restructuring
charges; and (vi) $116.2 million goodwill impairment charge related
to our Industrial segment.
- 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.
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 and organic growth (and such
measures further excluding discontinued operations) 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.
We exclude the results of discontinued operations.
We exclude goodwill impairment charges. We exclude these costs
because we do not believe they are indicative of our normal
operating costs.
Due to the significance of recently sold businesses and to
provide a comparison of changes in our orders and revenue, we also
discuss these changes on an “organic” basis. Organic is calculated
assuming the divestitures completed prior to April 4, 2021 were
completed on January 1, 2020 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 peers. 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 certain statements that are
“forward-looking statements” as that term is defined under the
Private Securities Litigation Reform Act of 1995 (the “Act”). The
words “may,” “hope,” “should,” “expect,” “plan,” “anticipate,”
“intend,” “believe,” “estimate,” “predict,” “potential,”
“continue,” and other expressions, which are predictions of or
indicate future events and trends and which do not relate to
historical matters, identify forward-looking statements, although
not all forward-looking statements are accompanied by such words.
We believe that it is important to communicate our future
expectations to our stockholders, and we, therefore, make
forward-looking statements in reliance upon the safe harbor
provisions of the Act. However, there may be events in the future
that we are not able to accurately predict or control and our
actual results may differ materially from the expectations we
describe in our forward-looking statements. Forward-looking
statements, including statements about outlook for the fourth
quarter, the expected and potential direct or indirect impacts of
the COVID-19 pandemic on our business, the realization of cost
reductions from restructuring activities and expected synergies,
the number of new product launches and future cash flows from
operating activities, involve known and unknown risks,
uncertainties and other factors, which may cause our actual
results, performance or achievements to differ materially from
anticipated future results, performance or achievements expressed
or implied by such forward-looking statements. Factors that could
cause or contribute to such differences include, but are not
limited to: the duration and severity of the COVID-19 pandemic and
its impact on the global economy; changes in the price of and
demand for oil and gas in both domestic and international markets;
any adverse changes in governmental policies; variability of raw
material and component pricing; changes in our suppliers’
performance; fluctuations in foreign currency exchange rates;
changes in tariffs or other taxes related to doing business
internationally; our ability to hire and retain key personnel; our
ability to operate our manufacturing facilities at efficient levels
including our ability to prevent cost overruns and reduce costs;
our ability to generate increased cash by reducing our working
capital; our prevention of the accumulation of excess inventory;
our ability to successfully implement our divestiture;
restructuring or simplification strategies; fluctuations in
interest rates; our ability to successfully defend product
liability actions; as well as the uncertainty associated with the
current worldwide economic conditions and the continuing impact on
economic and financial conditions in the United States and around
the world, including as a result of COVID-19, natural disasters,
terrorist attacks and other similar matters. We advise you to read
further about these and other risk factors set forth in Part II,
Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A,
“Risk Factors” of our Annual Report on Form 10-K for the year ended
December 31, 2020, which is filed with the Securities and Exchange
Commission ("SEC") and is available on the SEC's website at
www.sec.gov. 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 is one of the world’s leading providers of
mission critical flow control products and services for the
Industrial and Aerospace & Defense markets. The Company has a
product portfolio of market-leading brands serving its customers’
most demanding applications. CIRCOR markets its solutions directly
and through various sales partners to more than 14,000 customers in
approximately 100 countries. The Company has a global presence with
approximately 3,100 employees and is headquartered in Burlington,
Massachusetts. For more information, visit the Company’s investor
relations website at http://investors.circor.com.
CIRCOR INTERNATIONAL,
INC.
Condensed Consolidated
Statements of Operations
(in thousands, except per
share data) (unaudited)
Three Months Ended
April 4, 2021
March 29, 2020
Net revenues
$
180,655
$
192,213
Cost of revenues
124,574
132,170
Gross profit
56,081
60,043
Selling, general and administrative
expenses
56,504
59,558
Goodwill impairment charge
—
116,182
Special and restructuring charges
(recoveries), net
(809
)
(42,292
)
Operating income (loss)
386
(73,405
)
Other expense (income), net:
Interest expense, net
8,369
9,011
Other expense (income), net
(1,503
)
(2,680
)
Total other expense, net
6,866
6,331
(Loss) income from continuing operations
before income taxes
(6,480
)
(79,736
)
Provision for (benefit from) income
taxes
400
8,374
(Loss) income from continuing operations,
net of tax
(6,880
)
(88,110
)
Income (loss) from discontinued
operations, net of tax
(239
)
9,162
Net loss
$
(7,119
)
$
(78,948
)
Basic income (loss) per common
share:
Basic from continuing operations
$
(0.34
)
$
(4.42
)
Basic from discontinued operations
$
(0.01
)
$
0.46
Net loss
$
(0.35
)
$
(3.96
)
Diluted income (loss) per common
share:
Diluted from continuing operations
$
(0.34
)
$
(4.42
)
Diluted from discontinued operations
$
(0.01
)
$
0.46
Net loss
$
(0.35
)
$
(3.96
)
Weighted average number of common
shares outstanding:
Basic
20,054
19,935
Diluted
20,054
19,935
CIRCOR INTERNATIONAL,
INC.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
April 4, 2021
March 29, 2020
OPERATING ACTIVITIES
Net loss
$
(7,119
)
$
(78,948
)
Loss from discontinued operations, net of
income taxes
(239
)
9,162
Loss from continuing operations
(6,880
)
(88,110
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation
6,509
5,121
Amortization
10,696
10,611
Provision for bad debt expense
(254
)
5,802
Write down of inventory
129
343
Compensation expense for share-based
plans
1,402
608
Amortization of debt issuance costs
995
4,513
Deferred tax provision
823
—
Goodwill impairment charge
—
116,182
(Gain) loss on sale of businesses
(1,947
)
(54,356
)
Changes in operating assets and
liabilities, net of effects of acquisition and disposition:
Trade accounts receivable
(3,793
)
(1,550
)
Inventories
(8,055
)
(13,365
)
Prepaid expenses and other assets
(15,332
)
(5,507
)
Accounts payable, accrued expenses and
other liabilities
(1,360
)
1,081
Net cash (used in) provided by continuing
operating activities
(17,067
)
(18,627
)
Net cash used in discontinued operating
activities
(636
)
(5,320
)
Net cash used in operating
activities
(17,703
)
(23,947
)
INVESTING ACTIVITIES
Additions to property, plant and
equipment
(3,394
)
(3,412
)
Proceeds from sale of property, plant and
equipment
2
—
Proceeds from the sale of business
7,193
169,773
Proceeds from beneficial interest of
factored receivables
812
599
Net cash provided by continuing investment
activities
4,613
166,960
Net cash used in discontinued investing
activities
—
68
Net cash provided by investing
activities
4,613
167,028
FINANCING ACTIVITIES
Proceeds from long-term debt
63,500
129,325
Payments of long-term debt
(46,500
)
(180,891
)
Withholding tax payments on restricted and
performance stock units converted
(3,274
)
—
Proceeds from the exercise of stock
options
151
118
Net cash provided by (used) in
financing activities
13,877
(51,448
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(1,545
)
(5,389
)
(DECREASE) INCREASE IN CASH, CASH
EQUIVALENTS, AND RESTRICTED CASH
(758
)
86,244
Cash, cash equivalents, and restricted
cash at beginning of period
77,696
85,727
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH AT END OF PERIOD
$
76,938
$
171,971
CIRCOR INTERNATIONAL,
INC.
Condensed Consolidated Balance
Sheets
(in thousands)
(unaudited)
April 4, 2021
December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
75,680
$
76,452
Trade accounts receivable, less allowance
for doubtful accounts of $8,585 and $9,035 at April 4, 2021 and
December 31, 2020, respectively
105,607
102,730
Inventories
135,291
129,084
Prepaid expenses and other current
assets
103,632
93,226
Assets held for sale
—
5,073
Total Current Assets
420,210
406,565
PROPERTY, PLANT AND EQUIPMENT, NET
163,431
168,763
OTHER ASSETS:
Goodwill
156,917
158,944
Intangibles, net
337,864
353,595
Deferred income taxes
781
779
Other assets
43,999
41,882
TOTAL ASSETS
$
1,123,202
$
1,130,528
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$
67,126
$
61,236
Accrued expenses and other current
liabilities
67,059
75,624
Accrued compensation and benefits
31,338
28,332
Total Current Liabilities
165,523
165,192
LONG-TERM DEBT
525,573
507,888
DEFERRED INCOME TAXES
27,071
28,980
PENSION LIABILITY, NET
156,746
163,642
OTHER NON-CURRENT LIABILITIES
52,183
58,785
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value;
1,000,000 shares authorized; no shares issued and outstanding
—
—
Common stock, $0.01 par value; 29,000,000
shares authorized; 21,543,496 and 21,373,813 issued at April 4,
2021 and December 31, 2020 respectively
216
214
Additional paid-in capital
451,858
452,728
(Accumulated deficit) retained
earnings
(93,580
)
(86,461
)
Common treasury stock, at cost (1,372,488
shares at April 4, 2021 and December 31, 2020)
(74,472
)
(74,472
)
Accumulated other comprehensive loss, net
of tax
(87,916
)
(85,968
)
Total Shareholders' Equity
196,106
206,041
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
1,123,202
$
1,130,528
CIRCOR INTERNATIONAL,
INC.
Summary of Orders and
Backlog
(in millions)
(unaudited)
Three Months Ended
April 4, 2021
March 29, 2020
ORDERS (1)
Aerospace & Defense
$
73.0
$
72.0
Industrial
153.7
136.4
Total Orders
$
226.7
$
208.5
April 4, 2021
March 29, 2020
BACKLOG (2)
Aerospace & Defense
$
194.7
$
199.0
Industrial
226.4
222.2
Total Backlog
$
421.1
$
421.2
Note 1: Orders do not include the foreign exchange impact due to
the re-measurement of customer backlog amounts denominated in
foreign currencies. Orders for the three months ended March 29,
2020 include orders from businesses divested prior to March 29,
2020 of $4.4 million.
Note 2: Backlog includes unshipped customer orders for which
revenue has not been recognized.
CIRCOR INTERNATIONAL,
INC.
Segment Information
(in thousands, except
percentages)
UNAUDITED
2020
2021
As reported
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
ORDERS
Aerospace & Defense
$
72,031
$
76,616
$
59,105
$
46,796
$
254,548
$
72,999
Industrial
136,443
116,023
107,453
121,690
481,609
153,695
Total
$
208,474
$
192,639
$
166,558
$
168,486
$
736,157
$
226,693
NET REVENUES
Aerospace & Defense
$
65,493
$
62,241
$
62,249
$
77,839
$
267,822
$
60,001
Industrial
126,720
123,825
124,391
130,513
505,449
120,654
Total
$
192,213
$
186,066
$
186,640
$
208,352
$
773,271
$
180,655
SEGMENT OPERATING INCOME
Aerospace & Defense
$
12,494
$
13,142
$
14,782
$
18,675
$
59,093
$
10,706
Industrial
5,169
12,406
9,807
12,441
39,823
9,735
Corporate expenses
(6,588
)
(9,664
)
(7,244
)
(7,789
)
(31,285
)
(8,002
)
Total
$
11,075
$
15,884
$
17,345
$
23,327
$
67,631
$
12,439
SEGMENT OPERATING MARGIN %
Aerospace & Defense
19.1
%
21.1
%
23.7
%
24.0
%
22.1
%
17.8
%
Industrial
4.1
%
10.0
%
7.9
%
9.5
%
7.9
%
8.1
%
Total
5.8
%
8.5
%
9.3
%
11.2
%
8.7
%
6.9
%
2020
2021
Results of divested businesses
(1)
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
ORDERS - Industrial
$
4,449
$
—
$
—
$
—
$
4,449
$
—
NET REVENUES - Industrial
$
4,900
$
—
$
—
$
—
$
4,900
$
—
SEGMENT OP. INC. - Industrial
$
—
$
—
$
—
$
—
$
—
$
—
CIRCOR INTERNATIONAL,
INC.
Supplemental Information
Regarding Divested Businesses
(in thousands, except
percentages) (unaudited)
2020
2021
Results excluding divested
businesses
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
ORDERS
Aerospace & Defense
$
72,031
$
76,616
$
59,105
$
46,796
$
254,548
$
72,999
Industrial
131,994
116,023
107,453
121,690
477,160
153,695
Total
$
204,025
$
192,639
$
166,558
$
168,486
$
731,708
$
226,693
NET REVENUES
Aerospace & Defense
$
65,493
$
62,241
$
62,249
$
77,839
$
267,822
$
60,001
Industrial
121,820
123,825
124,391
130,513
500,549
120,654
Total
$
187,313
$
186,066
$
186,640
$
208,352
$
768,371
$
180,655
SEGMENT OPERATING INCOME
Aerospace & Defense
$
12,494
$
13,142
$
14,782
$
18,675
$
59,093
$
10,706
Industrial
5,169
12,406
9,807
12,441
39,823
9,735
Corporate expenses
(6,588
)
(9,664
)
(7,244
)
(7,789
)
(31,285
)
(8,002
)
Total
$
11,075
$
15,884
$
17,345
$
23,327
$
67,631
$
12,439
SEGMENT OPERATING MARGIN %
Aerospace & Defense
19.1
%
21.1
%
23.7
%
24.0
%
22.1
%
17.8
%
Industrial
4.2
%
10.0
%
7.9
%
9.5
%
8.0
%
8.1
%
Total
5.9
%
8.5
%
9.3
%
11.2
%
8.8
%
6.9
%
(1) Divested businesses are related to the Industrial Segment
and include Instrumentation & Sampling. Distributed Valves are
discontinued operations and not reflected in the As Reported
figures in accordance with US GAAP.
CIRCOR INTERNATIONAL,
INC.
Reconciliation of Key
Performance Measures to Commonly Used Generally Accepted Accounting
Principle Terms
(in thousands, except
percentages) (unaudited)
2020
2021
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
Net Cash (Used In) Provided By Operating
Activities
$
(23,947
)
$
(24,883
)
$
2,465
$
23,641
$
(22,724
)
$
(17,703
)
LESS
Capital expenditures, net of sale proceeds
(a)
3,412
3,527
2,330
3,275
12,544
3,392
FREE CASH FLOW
$
(27,359
)
$
(28,410
)
$
135
$
20,366
$
(35,268
)
$
(21,095
)
Gross Debt
$
602,288
$
592,038
$
540,463
$
519,938
$
519,938
$
536,938
Less: Cash & Cash equivalents
170,861
125,421
72,772
76,452
76,452
75,680
GROSS DEBT, NET OF CASH
$
431,427
$
466,617
$
467,691
$
443,486
$
443,486
$
461,258
TOTAL SHAREHOLDERS' EQUITY
$
290,845
$
273,351
$
220,814
$
206,041
$
206,041
$
196,106
GROSS DEBT AS % OF EQUITY
207
%
217
%
245
%
252
%
252
%
274
%
GROSS DEBT, NET OF CASH AS % OF EQUITY
148
%
171
%
212
%
215
%
215
%
235
%
(a) includes capital expenditures, net of
sales proceeds of discontinued operations
CIRCOR INTERNATIONAL,
INC.
Reconciliation of Key
Performance Measures to Commonly Used Generally Accepted Accounting
Principle Terms
(in thousands, except
percentages) (unaudited)
2020
2021
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
NET (LOSS) INCOME
$
(78,948
)
$
(34,092
)
$
(58,524
)
$
(13,934
)
$
(185,498
)
$
(7,119
)
LESS:
Restructuring related inventory
charges
(602
)
—
351
—
(251
)
—
Restructuring charges, net
2,883
588
502
972
4,945
2,060
Acquisition amortization
10,218
10,681
10,625
10,939
42,463
10,487
Acquisition depreciation
974
980
1,011
1,021
3,986
2,375
Special (recoveries) charges, net
(45,175
)
5,019
436
473
(39,247
)
(2,869
)
Goodwill Impairment charge
116,182
—
—
—
116,182
—
Income tax impact
7,704
(22,549
)
53,240
13,125
51,521
(335
)
Net loss (income) from discontinued
operations
(9,162
)
43,848
(341
)
795
35,140
239
ADJUSTED NET INCOME
$
4,074
$
4,475
$
7,300
$
13,390
$
29,240
$
4,838
(LOSS) EARNINGS PER COMMON SHARE
(Diluted)
$
(3.96
)
$
(1.68
)
$
(2.93
)
$
(0.70
)
$
(9.28
)
$
(0.35
)
LESS:
Restructuring related inventory
charges
(0.03
)
—
0.02
—
(0.01
)
—
Restructuring charges, net
0.14
0.03
0.02
0.05
0.25
0.10
Acquisition amortization
0.51
0.53
0.53
0.55
2.13
0.52
Acquisition depreciation
0.05
0.05
0.05
0.05
0.20
0.12
Special (recoveries) charges, net
(2.27
)
0.25
0.02
0.02
(1.96
)
(0.14
)
Impairment charge
5.83
—
—
—
5.81
—
Income tax impact
0.39
(1.11
)
2.66
0.66
2.58
(0.02
)
Earnings (Loss) per share from
discontinued operations
(0.46
)
2.16
(0.02
)
0.04
1.76
0.01
ADJUSTED EARNINGS PER SHARE
(Diluted)
$
0.20
$
0.22
$
0.36
$
0.66
$
1.43
$
0.24
CIRCOR INTERNATIONAL,
INC.
Reconciliation of Key
Performance Measures to Commonly Used Generally Accepted Accounting
Principle Terms
(in thousands, except
percentages) (unaudited)
2020
2021
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
NET (LOSS) INCOME
$
(78,948
)
$
(34,092
)
$
(58,524
)
$
(13,934
)
$
(185,498
)
$
(7,119
)
LESS:
Interest expense, net
9,011
8,486
8,202
8,520
34,219
8,369
Depreciation
5,121
4,958
4,802
5,504
20,385
6,509
Amortization
10,516
10,976
10,925
11,245
43,662
10,696
Provision for income taxes
8,374
(21,769
)
54,318
15,299
56,222
400
Loss (income) from discontinued
operations
(9,162
)
43,847
(341
)
795
35,140
239
EBITDA
$
(55,088
)
$
12,406
$
19,383
$
27,429
$
4,130
$
19,094
LESS:
Restructuring related inventory charges
(recoveries)
(602
)
—
351
—
(251
)
—
Restructuring charges, net
2,883
588
502
972
4,945
2,060
Special (recoveries) charges, net
(45,175
)
5,019
436
473
(39,247
)
(2,869
)
Goodwill impairment charge
116,182
—
—
—
116,182
—
ADJUSTED EBITDA
$
18,200
$
18,013
$
20,671
$
28,873
$
85,758
$
18,285
CIRCOR INTERNATIONAL,
INC.
Reconciliation of Key
Performance Measures to Commonly Used Generally Accepted Accounting
Principle Terms
(in thousands, except
percentages) (unaudited)
2020
2021
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
GAAP OPERATING INCOME (LOSS)
$
(73,405
)
$
(1,384
)
$
4,420
$
9,923
$
(60,446
)
$
386
LESS:
Restructuring related inventory charges
(recoveries)
(602
)
—
351
—
(251
)
—
Amortization of inventory step-up
—
—
—
—
—
—
Restructuring charges, net
2,883
588
502
972
4,945
2,060
Acquisition amortization
10,218
10,681
10,625
10,939
42,463
10,487
Acquisition depreciation
974
980
1,011
1,021
3,986
2,375
Special (recoveries) charges, net
(45,175
)
5,019
436
473
(39,247
)
(2,869
)
Goodwill impairment charge
116,182
—
—
—
116,182
—
ADJUSTED OPERATING INCOME
$
11,075
$
15,884
$
17,345
$
23,327
$
67,631
$
12,439
GAAP OPERATING MARGIN
(38.2
)%
(0.7
)%
2.4
%
4.8
%
(7.8
)%
0.2
%
LESS:
Restructuring related inventory charges
(recoveries)
(0.3
)%
—
%
0.2
%
—
%
—
%
—
%
Amortization of inventory step-up
—
%
—
%
—
%
—
%
—
%
—
%
Restructuring charges, net
1.5
%
0.3
%
0.3
%
0.5
%
0.6
%
1.1
%
Acquisition amortization
5.3
%
5.7
%
5.7
%
5.3
%
5.5
%
5.8
%
Acquisition depreciation
0.5
%
0.5
%
0.5
%
0.5
%
0.5
%
1.3
%
Special (recoveries) charges, net
(23.5
)%
2.7
%
0.2
%
0.2
%
(5.1
)%
(1.6
)%
Goodwill impairment charge
60.4
%
—
%
—
%
—
%
15.0
%
—
%
ADJUSTED OPERATING MARGIN
5.8
%
8.5
%
9.3
%
11.2
%
8.7
%
6.9
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210512005257/en/
Alex Maki Vice President - FP&A and Investor Relations
CIRCOR International (781) 270-1200
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