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 second
quarter ended June 28, 2020.
Second Quarter 2020 Overview
- Orders of $193 million produced a book-to-bill ratio of 1.04
and backlog increase of $7 million
- Revenue of $186 million, down 24% reported, down 14%
organically
- Aerospace & Defense revenue of $62 million, down 4%
reported, down 3% organically
- Industrial revenue of $124 million, down 32% reported, down 19%
organically
- GAAP loss per share of $(1.68); Adjusted earnings per share of
$0.22
- GAAP operating margin of (0.7%); Adjusted operating margin of
8.5%
- Aerospace & Defense operating margin of 21.1%, up 500 bps
versus last year
- Completed exit from upstream Oil & Gas: Divested
loss-making Distributed Valves
- All manufacturing facilities operating at level of demand
- Remain on track to achieve $45 million 2020 cost reduction
plan
- Gross debt reduction of $156 million and net debt reduction of
$205 million over last 12 months
“As we continue to navigate the COVID-19 environment, CIRCOR’s
top priority remains the health and safety of our employees,
customers and suppliers,” said Scott Buckhout, CIRCOR’s President
and CEO. “I would like to thank the entire CIRCOR team for doing a
remarkable job serving our customers during this challenging time.
I am pleased to report that as of today, all of our facilities are
operational, with limited direct disruption from the COVID-19
pandemic.”
Mr. Buckhout continued, “Our team has been effectively executing
and building upon the 18-month strategic plan that we laid out last
summer. Consistent with this plan, we completed our exit from
upstream Oil & Gas, remain on track to launch 45 new products
this year, and have expanded our planned 2020 cost actions to
better align our cost structure with the current market
environment.”
“Looking ahead, we continue to focus on creating long-term value
for shareholders by positioning the Company for growth, expanding
margins, generating strong free cash flow, and de-levering the
balance sheet.”
Selected Preliminary Consolidated
Results
($ millions except EPS)
Q2 2020
Q2 2019
Change
Q2 YTD 2020
Q2 YTD 2019
Change
Revenue
$
186.1
$
245.8
-24
%
$
378.3
$
484.6
-22
%
Revenue - excluding divested businesses
1
186.1
219.7
-15
%
373.4
428.7
-13
%
GAAP operating (loss) income
(1.4
)
12.0
-112
%
(74.8
)
29.8
-351
%
Adjusted operating income 2
15.9
28.6
-44
%
27.0
52.0
-48
%
GAAP operating margin
(0.7
)%
4.9
%
-560 bps
(19.8
)%
6.1
%
-2590 bps
Adjusted operating margin 2
8.5
%
11.6
%
-310 bps
7.1
%
10.7
%
-360 bps
Adjusted operating margin ex
divestitures 1&2
8.5
%
10.6
%
-210 bps
7.2
%
9.5
%
-230 bps
GAAP loss per share (diluted)
$
(1.68
)
$
(0.93
)
-81
%
$
(5.66
)
$
(1.16
)
-388
%
Adjusted earnings per share (diluted)
2
$
0.22
$
0.65
-66
%
$
0.42
$
1.17
-64
%
Operating cash flow
(24.9
)
12.3
-302
%
(48.8
)
(10.0
)
-388
%
Free cash flow 3
(28.4
)
9.3
-405
%
(55.8
)
(16.7
)
-234
%
Orders
192.6
258.0
-25
%
401.1
518.0
-23
%
Orders - excluding divested businesses
1
192.6
233.6
-18
%
396.7
462.9
-14
%
Segment Results
($ millions)
Q2 2020
Q2 2019
Change
Q2 YTD 2020
Q2 YTD 2019
Change
Aerospace & Defense
Revenue
$
62.2
$
64.7
-4
%
$
127.7
$
125.9
1
%
Segment operating income
13.1
10.4
26
%
25.6
19.8
29
%
Segment operating margin
21.1
%
16.1
%
500 bps
20.1
%
15.7
%
440 bps
Orders
$
76.6
$
93.4
-18
%
$
148.6
$
181.5
-18
%
Industrial
Revenue
$
123.8
$
181.1
-32
%
$
250.5
$
358.7
-30
%
Revenue - excluding divested businesses
1
123.8
155.0
-20
%
245.6
302.8
-19
%
Segment operating income 2
12.4
26.2
-53
%
17.6
48.8
-64
%
Segment operating margin 2
10.0
%
14.5
%
-450 bps
7.0
%
13.6
%
-660 bps
Orders
$
116.0
$
164.6
-30
%
$
252.5
$
336.5
-25
%
Orders - excluding divested businesses
1
116.0
140.2
-17
%
248.0
281.4
-12
%
- 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 Reliability Services, Spence/Nicholson and
Instrumentation & Sampling (all Industrial) which were sold
before June 28, 2020.
- Adjusted consolidated and segment results for Q2 2020 exclude
net loss from discontinued operations of $43.8 million and net loss
from non-cash acquisition-related intangible amortization, special
and restructuring charges totaling $17.3 million ($5.3 million
income, net of tax). These charges include: (i) $11.7 million for
non-cash acquisition-related intangible amortization and
depreciation expense; (ii) $4.6 million of professional fees
associated with an unsolicited tender offer to acquire all
outstanding shares of the Company’s common stock; and (iii) $1.0
million of other special and restructuring charges. Adjusted
consolidated and segment results for Q2 2019 exclude net loss from
discontinued operations of $17.2 million and net loss from non-cash
acquisition-related intangible amortization, special and
restructuring charges totaling $16.6 million ($14.3 million, net of
tax). These charges include: (i) $12.4 million for non-cash
acquisition-related intangible amortization expense and
amortization of the step-up in fixed asset values; (ii) $2.1
million of professional fees associated with an unsolicited tender
offer to acquire all outstanding shares of the Company’s common
stock;(iii) $1.4 million related to the divestiture of our
Reliability Services business; and (iv) $0.7 million of other
special and restructuring charges.
- Free cash flow is a non-GAAP financial measure and is
calculated by subtracting GAAP capital expenditures, net of
proceeds from asset sales, from GAAP operating cash flow.
Conference Call Information
CIRCOR International will hold a conference call to review its
financial results at 9:00 a.m. ET today, August 7, 2020. To listen
to the live conference call and view the accompanying presentation
slides, please visit “Webcasts & Presentations” in the
“Investors” portion of CIRCOR’s website. The live call also can be
accessed by dialing (877) 407-5790 or (201) 689-8328. The webcast
will be archived on the Company’s website for one year.
Use of Non-GAAP Financial Measures
Adjusted operating income, adjusted operating margin, adjusted
net income, adjusted earnings per share (diluted), EBITDA, adjusted
EBITDA, net debt, free cash flow 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.
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 June 28, 2020 were
completed on January 1, 2019 and excluding the impact of changes in
foreign currency exchange rates.
CIRCOR’s management uses these non-GAAP measures, in addition to
GAAP financial measures, as the basis for measuring the Company’s
operating performance and comparing such performance to that of
prior periods and to the performance of our competitors. We use
such measures when publicly providing our business outlook,
assessing future earnings potential, evaluating potential
acquisitions and dispositions and in our financial and operating
decision-making process, including for compensation purposes.
Investors should recognize that these non-GAAP measures might
not be comparable to similarly titled measures of other companies.
These measures should be considered in addition and not as a
substitute for or superior to, any measure of performance, cash
flow or liquidity prepared in accordance with accounting principles
generally accepted in the United States. A reconciliation of the
non-GAAP financial measures to the most directly comparable GAAP
measures is included in this news release.
Safe Harbor Statement
This press release contains 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 third
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;
our ability to successfully integrate acquired businesses; 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, current Middle Eastern conflicts and other
similar matters. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING
OUR COMPANY, WE STRONGLY ADVISE YOU TO READ FURTHER ABOUT THESE AND
OTHER RISK FACTORS SET FORTH IN THE “RISK FACTORS” OF OUR ANNUAL
REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2019, WHICH IS
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ("SEC") AND IS
AVAILABLE ON THE SEC'S WEBSITE AT WWW.SEC.GOV, 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 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 3,200 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
Six Months Ended
Q2 2020
Q2 2019
Q2 2020
Q2 2019
Net revenues
$
186,066
$
245,768
$
378,279
$
484,623
Cost of revenues
127,105
163,851
259,275
328,292
Gross profit
58,961
81,917
119,004
156,331
Selling, general and administrative
expenses
54,738
65,682
114,296
130,188
Goodwill impairment charge
—
—
116,182
—
Special and restructuring (charges)
recoveries, net
5,607
4,215
(36,685
)
(3,627
)
Operating (loss) income
(1,384
)
12,020
(74,789
)
29,770
Other expense (income):
Interest expense (income), net
8,486
12,947
17,497
26,041
Other income, net
2,144
153
(536
)
(1,995
)
Total other expense, net
10,630
13,100
16,961
24,046
(Loss) income from continuing operations
before income taxes
(12,014
)
(1,080
)
(91,750
)
5,724
(Benefit from) provision for income
taxes
(21,769
)
284
(13,395
)
5,993
Income (loss) from continuing operations,
net of tax
9,755
(1,364
)
(78,355
)
(269
)
Loss from discontinued operations, net of
tax
(43,847
)
(17,156
)
(34,685
)
(22,884
)
Net loss
$
(34,092
)
$
(18,520
)
$
(113,040
)
$
(23,153
)
Basic income (loss) per common share:
Basic from continuing operations
$
0.49
$
(0.07
)
$
(3.93
)
$
(0.01
)
Basic from discontinued operations
$
(2.19
)
$
(0.86
)
$
(1.74
)
$
(1.15
)
Net loss
$
(1.71
)
$
(0.93
)
$
(5.66
)
$
(1.16
)
Diluted income (loss) per common
share:
Diluted from continuing operations
$
0.48
$
(0.07
)
$
(3.93
)
$
(0.01
)
Diluted from discontinued operations
$
(2.16
)
$
(0.86
)
$
(1.74
)
$
(1.15
)
Net loss
$
(1.68
)
$
(0.93
)
$
(5.66
)
$
(1.16
)
Weighted average number of common shares
outstanding:
Basic
19,987
19,906
19,962
19,888
Diluted
20,286
19,906
19,962
19,888
CIRCOR INTERNATIONAL, INC.
Condensed Consolidated Statements of Cash Flows (in thousands)
(unaudited)
Six Months Ended
June 28, 2020
June 30, 2019
OPERATING ACTIVITIES
Net loss
$
(113,040
)
$
(23,153
)
Loss from discontinued operations, net of
income taxes
(34,685
)
(22,884
)
Loss from continuing operations
(78,355
)
(269
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation
10,079
11,067
Amortization
21,492
24,317
Provision for bad debt expense
7,768
21
Loss on write-down of inventory
352
961
Compensation expense for share-based
plans
2,290
2,976
Amortization of debt issuance costs
5,488
1,997
Loss on sale or write-down of property,
plant and equipment
—
72
Goodwill impairment charge
116,182
—
Gain on sale of businesses
(54,253
)
(9,165
)
Changes in operating assets and
liabilities, net of effects of acquisition and disposition:
Trade accounts receivable
768
17,867
Inventories
(12,370
)
(12,868
)
Prepaid expenses and other assets
(25,264
)
(11,592
)
Accounts payable, accrued expenses and
other liabilities
(31,475
)
(30,465
)
Net cash (used in) provided by continuing
operating activities
(37,298
)
(5,081
)
Net cash used in discontinued operating
activities
(11,532
)
(4,958
)
Net cash used in operating
activities
(48,830
)
(10,039
)
INVESTING ACTIVITIES
Additions to property, plant and
equipment
(6,815
)
(6,358
)
Proceeds from sale of property, plant and
equipment
(142
)
858
Proceeds from the sale of business
169,375
82,203
Proceeds from collection of beneficial
interest
1,339
—
Net cash provided by continuing investment
activities
163,757
76,703
Net cash provided by (used in)
discontinued investing activities
(10,071
)
(1,184
)
Net cash provided by investing
activities
153,686
75,519
FINANCING ACTIVITIES
Proceeds from long-term debt
129,325
149,500
Payments of long-term debt
(191,141
)
(208,300
)
Proceeds from the exercise of stock
options
118
106
Net cash used in continuing financing
activities
(61,698
)
(58,694
)
Net cash used in financing
activities
(61,698
)
(58,694
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(2,421
)
793
INCREASE IN CASH, CASH EQUIVALENTS, AND
RESTRICTED CASH
40,737
7,579
Cash, cash equivalents, and restricted
cash at beginning of period
85,727
69,525
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH AT END OF PERIOD
$
126,464
$
77,104
CIRCOR INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets (in thousands)
(unaudited)
June 28, 2020
December 31, 2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
125,421
$
84,531
Trade accounts receivable, less allowance
for doubtful accounts of $10,877 and $3,086 at June 28, 2020 and
December 31, 2019, respectively
117,131
125,422
Inventories
148,383
137,309
Prepaid expenses and other current
assets
94,969
66,664
Assets held for sale
—
161,193
Total Current Assets
485,904
575,119
PROPERTY, PLANT AND EQUIPMENT, NET
167,194
172,179
OTHER ASSETS:
Goodwill
156,654
271,893
Intangibles, net
363,087
385,542
Deferred income taxes
53,357
30,852
Other assets
34,171
35,360
TOTAL ASSETS
$
1,260,367
$
1,470,945
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$
68,155
$
79,399
Accrued expenses and other current
liabilities
102,717
94,169
Accrued compensation and benefits
27,318
19,518
Liabilities held for sale
—
43,289
Total Current Liabilities
198,190
236,375
LONG-TERM DEBT
578,613
636,297
DEFERRED INCOME TAXES
20,229
21,425
PENSION LIABILITY, NET
145,138
146,801
OTHER NON-CURRENT LIABILITIES
44,846
38,636
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; 19,994,356 and 19,912,362 shares issued and
outstanding at June 28, 2020 and December 31, 2019,
respectively
214
213
Additional paid-in capital
449,576
446,657
(Accumulated deficit) retained
earnings
(13,982
)
99,280
Common treasury stock, at cost (1,372,488
shares at June 28, 2020 and December 31, 2019)
(74,472
)
(74,472
)
Accumulated other comprehensive loss, net
of tax
(87,985
)
(80,267
)
Total Shareholders' Equity
273,351
391,411
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
1,260,367
$
1,470,945
CIRCOR INTERNATIONAL, INC.
Summary of Orders and Backlog (in millions) (unaudited)
Three Months Ended
Six Months Ended
Q2 2020
Q2 2019
Q2 2020
Q2 2019
ORDERS (1)
Aerospace & Defense
$
76.6
$
93.4
$
148.6
$
181.5
Industrial
116.0
164.6
252.5
336.5
Total Orders
$
192.6
$
258.0
$
401.1
$
518.0
Q2 2020
Q2 2019
BACKLOG (2)
Aerospace & Defense
$
214.2
$
235.0
Industrial
217.8
238.1
Total Backlog
$
432.0
$
473.1
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 six
months ended June 28, 2020 include orders from businesses divested
prior to June 28, 2020 of $4.5 million. Orders for the three months
ended June 30, 2019 include orders from businesses divested of
$24.4 million ($55.1 million for the six months ended June 30,
2019). Divested businesses are Reliability Services,
Spence/Nicholson and Instrumentation and Sampling, all in the
Industrial segment.
Note 2: Backlog includes unshipped
customer orders for which revenue has not been recognized. Backlog
at Q2 2019 includes $11.3 million for Industrial related to
divested businesses.
CIRCOR INTERNATIONAL, INC.
Segment Information (in thousands, except percentages)
(unaudited)
2019
2020
As Reported
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
TOTAL
ORDERS
Aerospace & Defense
$
88,107
$
93,405
$
63,968
$
68,459
$
313,939
$
72,031
$
76,616
$
148,647
Industrial
171,834
164,642
158,986
168,091
663,553
136,443
116,023
252,466
Total
$
259,941
$
258,047
$
222,954
$
236,550
$
977,492
$
208,474
$
192,639
$
401,113
NET REVENUES
Aerospace & Defense
$
61,240
$
64,694
$
67,621
$
79,070
$
272,625
$
65,493
$
62,241
$
127,734
Industrial
177,615
181,074
169,431
163,568
691,688
126,720
123,825
250,545
Total
$
238,855
$
245,768
$
237,052
$
242,638
$
964,313
$
192,213
$
186,066
$
378,279
SEGMENT OPERATING INCOME
Aerospace & Defense
$
9,374
$
10,443
$
13,564
$
19,099
$
52,480
$
12,494
$
13,142
$
25,636
Industrial
22,581
26,174
21,278
20,757
90,790
5,169
12,406
17,575
Corporate expenses
(8,522
)
(8,028
)
(9,248
)
(7,671
)
(33,469
)
(6,588
)
(9,664
)
(16,252
)
Total
$
23,433
$
28,589
$
25,594
$
32,185
$
109,801
$
11,075
$
15,884
$
26,959
SEGMENT OPERATING MARGIN %
Aerospace & Defense
15.3
%
16.1
%
20.1
%
24.2
%
19.2
%
19.1
%
21.1
%
20.1
%
Industrial
12.7
%
14.5
%
12.6
%
12.7
%
13.1
%
4.1
%
10.0
%
7.0
%
Total
9.8
%
11.6
%
10.8
%
13.3
%
11.4
%
5.8
%
8.5
%
7.1
%
2019
2020
Results of Divested Businesses
(1)
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
TOTAL
ORDERS - Industrial
$
30,611
$
24,448
$
22,090
$
18,047
$
95,196
$
4,449
$
—
$
4,449
NET REVENUES - Industrial
$
29,787
$
26,101
$
20,697
$
18,602
$
95,187
$
4,900
$
—
$
4,900
SEGMENT OP. INC. - Industrial
$
6,217
$
5,229
$
2,677
$
3,166
$
17,289
$
—
$
—
$
—
CIRCOR INTERNATIONAL, INC.
Supplemental Information Regarding Divested Businesses (in
thousands, except percentages) (unaudited)
2019
2020
Results Excluding Divested Businesses
(1)
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
TOTAL
ORDERS
Aerospace & Defense
$
88,107
$
93,405
$
63,968
$
68,459
$
313,939
$
72,031
$
76,616
$
148,647
Industrial
141,223
140,194
136,896
150,044
568,357
131,994
116,023
248,017
Total
$
229,330
$
233,599
$
200,864
$
218,503
$
882,296
$
204,025
$
192,639
$
396,664
NET REVENUES
Aerospace & Defense
$
61,240
$
64,694
$
67,621
$
79,070
$
272,625
$
65,493
$
62,241
$
127,734
Industrial
147,828
154,973
148,734
144,966
596,501
121,820
123,825
245,645
Total
$
209,068
$
219,667
$
216,355
$
224,036
$
869,126
$
187,313
$
186,066
$
373,379
SEGMENT OPERATING INCOME
Aerospace & Defense
$
9,374
$
10,443
$
13,564
$
19,099
$
52,480
$
12,494
$
13,142
$
25,636
Industrial
16,364
20,945
18,601
17,591
73,501
5,169
12,406
17,575
Corporate expenses
(8,522
)
(8,028
)
(9,248
)
(7,671
)
(33,469
)
(6,588
)
(9,664
)
(16,252
)
Total
$
17,216
$
23,360
$
22,917
$
29,019
$
92,512
$
11,075
$
15,884
$
26,959
SEGMENT OPERATING MARGIN %
Aerospace & Defense
15.3
%
16.1
%
20.1
%
24.2
%
19.2
%
19.1
%
21.1
%
20.1
%
Industrial
11.1
%
13.5
%
12.5
%
12.1
%
12.3
%
4.2
%
10.0
%
7.2
%
Total
8.2
%
10.6
%
10.6
%
13.0
%
10.6
%
5.9
%
8.5
%
7.2
%
(1) Divested businesses are related to the
Industrial Segment and include Reliability Services,
Spence/Nicholson and Instrumentation & Sampling. Engineered
Valves and 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)
2019
2020
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
TOTAL
Net Cash (Used In) Provided By
Operating Activities
$
(22,378
)
$
12,339
$
9,128
$
16,822
$
15,911
$
(23,947
)
$
(24,883
)
$
(48,830
)
Less: Capital expenditures, net of sale
proceeds (a)
3,689
2,995
(963
)
(1,535
)
4,186
3,412
3,527
6,939
FREE CASH FLOW
$
(26,067
)
$
9,344
$
10,091
$
18,357
$
11,725
$
(27,359
)
$
(28,410
)
$
(55,769
)
Gross Debt
$
753,950
$
748,250
$
659,100
$
653,850
$
653,850
$
602,288
$
592,038
$
592,038
Less: Cash & Cash equivalents
73,619
76,082
69,225
84,531
84,531
170,861
125,421
125,421
NET DEBT
$
680,331
$
672,168
$
589,875
$
569,319
$
569,319
$
431,427
$
466,617
$
466,617
TOTAL SHAREHOLDERS' EQUITY
$
516,177
$
494,899
$
375,388
$
391,411
$
391,411
$
290,845
$
273,351
$
273,351
GROSS DEBT AS % OF EQUITY
146
%
151
%
176
%
167
%
167
%
207
%
217
%
217
%
NET DEBT AS % OF EQUITY
132
%
136
%
157
%
145
%
145
%
148
%
171
%
171
%
(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)
2019
2020
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
TOTAL
NET (LOSS) INCOME
$
(4,633
)
$
(18,520
)
$
(112,338
)
$
1,555
$
(133,936
)
$
(78,948
)
$
(34,092
)
$
(113,040
)
LESS:
Restructuring related inventory charges
(recoveries)
325
—
(1,145
)
—
(820
)
(602
)
—
(602
)
Amortization of inventory step-up
—
—
—
—
—
—
—
—
Restructuring charges, net
358
299
5,038
(509
)
5,186
2,883
588
3,471
Acquisition amortization
12,077
11,247
11,202
11,189
45,715
10,218
10,681
20,899
Acquisition depreciation
1,123
1,106
1,102
1,021
4,352
974
980
1,954
Special (recoveries) charges, net
(8,200
)
3,917
18,481
3,488
17,686
(45,175
)
5,019
(40,156
)
Goodwill impairment charge
—
—
—
—
—
116,182
—
116,182
Income tax impact
3,625
(2,266
)
5,533
(1,752
)
5,140
7,704
(22,549
)
(14,845
)
Net loss (income) from discontinued
operations
5,728
17,156
84,688
1,595
109,167
(9,162
)
43,848
34,686
ADJUSTED NET INCOME
$
10,403
$
12,939
$
12,561
$
16,587
$
52,490
$
4,074
$
4,475
$
8,549
(LOSS) EARNINGS PER COMMON SHARE
(Diluted)
$
(0.23
)
$
(0.93
)
$
(5.64
)
$
0.08
$
(6.73
)
$
(3.96
)
$
(1.68
)
$
(5.66
)
LESS:
Restructuring related inventory charges
(recoveries)
0.02
0.00
(0.06)
0.00
(0.04)
(0.03)
0.00
(0.03)
Amortization of inventory step-up
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Restructuring charges, net
0.02
0.02
0.25
(0.03)
0.26
0.14
0.03
0.17
Acquisition amortization
0.61
0.57
0.56
0.56
2.30
0.51
0.53
1.05
Acquisition depreciation
0.06
0.06
0.06
0.05
0.22
0.05
0.05
0.10
Special (recoveries) charges, net
(0.41)
0.20
0.93
0.18
0.89
(2.27)
0.25
(2.01)
Goodwill impairment charge
0.00
0.00
0.00
0.00
0.00
5.83
0.00
5.82
Income tax impact
0.18
(0.12)
0.28
(0.10)
0.24
0.39
(1.11)
(0.75)
Loss per share from discontinued
operations
0.29
0.86
4.25
0.08
5.48
(0.46)
2.16
1.74
ADJUSTED EARNINGS PER SHARE
(Diluted)
$
0.52
$
0.65
$
0.63
$
0.82
$
2.62
$
0.20
$
0.22
$
0.42
CIRCOR INTERNATIONAL, INC.
Reconciliation of Key Performance Measures to Commonly Used
Generally Accepted Accounting Principle Terms (in thousands, except
percentages) (unaudited)
2019
2020
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
TOTAL
NET (LOSS) INCOME
$
(4,633
)
$
(18,520
)
$
(112,338
)
$
1,555
$
(133,936
)
$
(78,948
)
$
(34,092
)
$
(113,040
)
LESS:
Interest expense, net
13,094
12,947
11,804
10,763
48,609
9,011
8,486
17,497
Depreciation
5,499
5,568
5,551
5,427
22,045
5,121
4,958
10,079
Amortization
12,536
11,685
11,629
11,741
47,591
10,516
10,976
21,492
Provision for (benefit from) income
taxes
5,709
284
7,490
1,193
14,676
8,374
(21,769
)
(13,395
)
Loss (income) from discontinued
operations
5,728
17,156
84,688
1,595
109,167
(9,162
)
43,847
34,685
EBITDA
$
37,933
$
29,121
$
8,825
$
32,274
$
108,152
$
(55,088
)
$
12,406
$
(42,682
)
LESS:
Restructuring related inventory
charges
325
—
(1,145
)
—
(820
)
(602
)
—
(602
)
Amortization of inventory step-up
—
—
—
—
—
—
—
—
Restructuring charges, net
358
299
5,038
(509
)
5,186
2,883
588
3,471
Special (recoveries) charges, net
(8,200
)
3,917
18,481
3,488
17,686
(45,175
)
5,019
(40,156
)
Goodwill impairment charge
—
—
—
—
—
116,182
—
116,182
ADJUSTED EBITDA
$
30,416
$
33,337
$
31,199
$
35,253
$
130,204
$
18,200
$
18,013
$
36,213
CIRCOR INTERNATIONAL, INC.
Reconciliation of Key Performance Measures to Commonly Used
Generally Accepted Accounting Principle Terms (in thousands, except
percentages) (unaudited)
2019
2020
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
TOTAL
GAAP OPERATING INCOME (LOSS)
$
17,750
$
12,020
$
(9,084
)
$
16,996
$
37,682
$
(73,405
)
$
(1,384
)
$
(74,789
)
LESS:
Restructuring related inventory charges
(recoveries)
325
—
(1,145
)
—
(820
)
(602
)
—
(602
)
Amortization of inventory step-up
—
—
—
—
—
—
—
—
Restructuring charges, net
358
299
5,038
(509
)
5,186
2,883
588
3,471
Acquisition amortization
12,077
11,247
11,202
11,189
45,715
10,218
10,681
20,899
Acquisition depreciation
1,123
1,106
1,102
1,021
4,352
974
980
1,954
Special (recoveries) charges, net
(8,200
)
3,917
18,481
3,488
17,686
(45,175
)
5,019
(40,156
)
Goodwill impairment charge
—
—
—
—
—
116,182
—
116,182
ADJUSTED OPERATING INCOME
$
23,433
$
28,589
$
25,594
$
32,185
$
109,801
$
11,075
$
15,884
$
26,959
GAAP OPERATING MARGIN
7.4
%
4.9
%
-3.8
%
7.0
%
3.9
%
-38.2
%
-0.7
%
-19.8
%
LESS:
Restructuring related inventory charges
(recoveries)
0.1
%
—
%
-0.5
%
—
%
-0.1
%
-0.3
%
—
%
-0.2
%
Amortization of inventory step-up
—
%
—
%
—
%
—
%
—
%
—
%
—
%
—
%
Restructuring charges, net
0.1
%
0.1
%
2.1
%
-0.2
%
0.5
%
1.5
%
0.3
%
0.9
%
Acquisition amortization
5.1
%
4.6
%
4.7
%
4.6
%
4.7
%
5.3
%
5.7
%
5.5
%
Acquisition depreciation
0.5
%
0.5
%
0.5
%
0.4
%
0.5
%
0.5
%
0.5
%
0.5
%
Special (recoveries) charges, net
-3.4
%
1.6
%
7.8
%
1.4
%
1.8
%
-23.5
%
2.7
%
-10.6
%
Goodwill impairment charge
—
%
—
%
—
%
—
%
—
%
60.4
%
—
%
30.7
%
ADJUSTED OPERATING MARGIN
9.8
%
11.6
%
10.8
%
13.3
%
11.4
%
5.8
%
8.5
%
7.1
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200807005094/en/
Abhi Khandelwal Senior Vice President Finance & Chief
Financial Officer CIRCOR International (781) 270-1200
CIRCOR (NYSE:CIR)
Historical Stock Chart
From Aug 2024 to Sep 2024
CIRCOR (NYSE:CIR)
Historical Stock Chart
From Sep 2023 to Sep 2024