CIRCOR International, Inc. (NYSE: CIR) (“CIRCOR” or “the
Company”), 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 3, 2022. Results are in
line with previously disclosed selected preliminary financial
expectations.
Q1 2022 Overview Results As
Reported:
- Orders of $222 million, down (2%) reported and up 1%
organically
- Aerospace & Defense orders of $78 million, up 7% reported
and 8% organically
- Industrial orders of $144 million, down (7%) reported and (2%)
organically
- Backlog of $477 million, up 12% reported driven by strong
demand in Industrial
- Revenue of $186 million up 5% reported and 8% organically
- Aerospace & Defense revenue of $63 million, up 8% reported
and 10% organically
- Industrial revenue of $122 million, up 4% reported and 8%
organically
- GAAP operating (loss) of ($11.8) million, down (124%)
reported
- GAAP operating margin of (6.3%)
- Adjusted operating income $10.4 million, up 53%
- Adjusted operating margin of 5.6%, up 180 bps
Q1 2022 Overview Results Excluding
Pipeline Engineering:
- Orders of $219 million, down (1%) adjusted and up 2%
organically
- Aerospace & Defense orders of $78 million, up 7% adjusted
and 8% organically
- Industrial orders of $141 million, down (5%) adjusted and flat
organically
- Backlog of $477 million, up 13% adjusted, driven by strong
demand in Industrial
- Revenue of $183 million up 5% adjusted and 9% organically
- Aerospace & Defense revenue of $63 million, up 8% adjusted
and 10% organically
- Industrial revenue of $119 million, up 4% adjusted and 8%
organically
- Adjusted operating income $13.6 million, up 47% adjusted
- Adjusted operating margin of 7.4%, up 210 bps
CIRCOR President and CEO, Tony Najjar said, “Our team delivered
solid first quarter 2022 results highlighted by continued strong
orders performance in A&D and core Industrial businesses
partially offset by lumpiness in our downstream business. Revenues
for the quarter were up 9% organically excluding Pipeline
Engineering, driven by both segments. Excluding Pipeline
Engineering, adjusted operating income for the quarter was up 47%
and adjusted operating margin up 210 basis points. With a focus on
our strategic priorities driving value-based pricing,
simplification and cost out actions, we continue to position the
Company for growth, expanding margins and improving cash flow.”
Selected Consolidated
Results
(unaudited)
($ millions except EPS)
April 3, 2022
As Restated April 4,
2021
Change
Orders
221.6
226.7
-2
%
Orders excluding Pipeline
Engineering1
219.4
221.2
-1
%
Revenue
$
185.7
$
176.5
5
%
Revenue excluding Pipeline
Engineering1
182.6
173.5
5
%
GAAP operating (loss) income
(11.8
)
(5.3
)
-124
%
Adjusted operating income2
10.4
6.8
53
%
Adjusted operating income excluding
Pipeline Engineering1,2
13.6
9.3
47
%
GAAP operating margin
-6.3
%
-3.0
%
-330 bps
Adjusted operating margin2
5.6
%
3.8
%
180 bps
Adjusted operating margin excluding
Pipeline Engineering1,2
7.4
%
5.3
%
210 bps
GAAP (loss) per share
$
(1.06
)
$
(0.59
)
-81
%
Adjusted earnings per share
(diluted)2
$
0.05
$
0.02
150
%
Operating cash flow
(15.9
)
(19.2
)
17
%
Free cash flow3
(19.5
)
(22.6
)
14
%
Segment Results
(unaudited)
($ in millions)
April 3, 2022
As Restated April 4,
2021
Change
Aerospace & Defense
Orders
$
77.9
$
73.0
7
%
Revenue
63.4
58.5
8
%
Segment operating income
11.3
10.0
13
%
Segment operating margin
17.9
%
17.1
%
80 bps
Industrial
Orders
$
143.7
$
153.7
-7
%
Orders - excluding Pipeline
Engineering1
141.5
148.2
-5
%
Revenue
122.3
118.0
4
%
Revenue - excluding Pipeline
Engineering1
$
119.3
$
115.0
4
%
Segment operating income
6.9
5.8
18
%
Segment operating income excluding
Pipeline Engineering
10.0
8.3
20
%
Segment operating margin
5.6
%
4.9
%
70 bps
Segment operating margin
(adjusted)
8.4
%
7.2
%
120 bps
- Orders, revenue, adjusted operating income and adjusted
operating margin excluding Pipeline Engineering businesses are
non-GAAP measures. Pipeline Engineering accounting irregularities
were initially noted on March 14,2022 8-K Filing and further
described in the Company's Annual report Form 10-K filed with SEC
on July 26, 2022 as related to the Industrial Segment.
- Adjusted consolidated and segment results for Q1 2022 exclude
net loss from non-cash acquisition-related intangible amortization
and special and restructuring charges of $22.2 million. These
charges include: (i) $10.4 million for non-cash acquisition-related
intangible amortization and depreciation expense; (ii) $8.7 million
of restructuring costs associated with the exit of the Pipeline
Engineering business; (iii) $1.3 million costs due to the
investigation into the accounting irregularities of the Pipeline
Engineering business; (iv) $0.9 million charge for severance
related to the former CEO; and (v) $0.9 million of other special
and restructuring costs. 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
expense.
- 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.
Company Announces Executive Appointments
CIRCOR also announced that Tony Najjar has been appointed
President & Chief Executive Officer, and Arjun “AJ” Sharma has
been appointed Chief Financial Officer. Mr. Najjar, who joined the
Company in 2015, has most recently served as the Chief Operating
Officer and Interim President & Chief Executive Officer. Mr.
Sharma, who joined the Company in 2009, has most recently served as
Senior Vice President, Business Development and Interim Chief
Financial Officer. Mr. Sharma will retain his leadership of
business development in his new role.
“Since being appointed to their interim roles, Tony and AJ have
demonstrated their ability to lead the Company through challenging
times,” said Helmuth Ludwig, Chair of CIRCOR’s Board of Directors.
“As the Board continues to evaluate strategic alternatives for the
Company, we believe Tony and AJ are the right leaders for CIRCOR.
While completing the accounting review that occurred earlier this
year, they have also stabilized business operations, focused on
employee engagement, strengthened customer relationships and are
driving growth and margin expansion initiatives. We look forward to
partnering with Tony and AJ to create value for our
stakeholders.”
Use of Non-GAAP Financial Measures
In this press release, the Company uses the non-GAAP financial
measures backlog, backlog excluding Pipeline Engineering, orders,
orders excluding Pipeline Engineering, revenue excluding Pipeline
Engineering, adjusted operating income, adjusted operating income
excluding Pipeline Engineering, adjusted operating margin, adjusted
operating margin excluding Pipeline Engineering, adjusted earnings
per share and free cash flow. 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 that these non-GAAP
financial measures provide useful information to investors and
others in understanding and evaluating CIRCOR’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 CIRCOR’s current financial
results with CIRCOR’s past financial results in a consistent
manner.
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 or exited businesses
and to provide a comparison of changes in our backlog, orders and
revenue, we also discuss these changes on an “organic” basis.
Organic is calculated assuming the divestitures and/or exited
business are completed prior to April 3, 2022 were completed on
January 1, 2021 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.
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.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from the expectations the Company describes in its
forward-looking statements. Substantial 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. Important factors that could cause
actual results to differ materially from expectations include, but
are not limited to findings and conclusions of the Audit
Committee’s review; the effectiveness of the Company’s internal
control over financial reporting and disclosure controls and
procedures; the remediation of the material weaknesses in the
Company’s internal controls over financial reporting or other
potential weaknesses of which the Company is not currently aware or
which have not been detected; the timing of the Company regaining
compliance with the NYSE’s continued listing standards; the timing
and outcome, if any, of the Company’s strategic alternatives review
and its exit from the Pipeline Engineering business unit; the
impact on the Company of the situation in Russia and Ukraine; and
the risks detailed from time to time in the Company’s periodic
reports filed with the SEC. Before making any investment decisions
regarding CIRCOR, the Company strongly advises you to read the
section entitled “Risk Factors” in its 2021 Annual Report on Form
10-K, which can be accessed under the “Investors” link of the
Company’s website at www.circor.com. The Company undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
CIRCOR INTERNATIONAL,
INC
CONSOLIDATED STATEMENT OF
OPERATIONS
(in thousands, except per
share data) (unaudited)
Three Months Ended
April 3, 2022
As Restated April 4,
2021
Net revenues
$
185,655
$
176,451
Cost of revenues
130,372
124,889
Gross profit
55,283
51,562
Selling, general and administrative
expenses
58,069
57,637
Special and restructuring charges
(recoveries), net
9,003
(809
)
Operating (loss)
(11,789
)
(5,266
)
Other expense (income):
Interest expense, net
9,456
8,369
Other (income) expense
(1,287
)
(1,781
)
Total other expense, net
8,169
6,588
(Loss) from continuing operations before
income taxes
(19,958
)
(11,854
)
Provision for (benefit from) income
taxes
1,523
(297
)
(Loss) from continuing operations, net of
tax
$
(21,481
)
$
(11,557
)
(Loss) from discontinued operations, net
of tax
$
—
$
(239
)
Net (loss)
$
(21,481
)
$
(11,796
)
Basic (loss) per common share:
Basic from continuing operations
$
(1.06
)
$
(0.58
)
Basic from discontinued operations
$
—
$
(0.01
)
Net (loss)
$
(1.06
)
$
(0.59
)
Diluted (loss) per common
share:
Diluted from continuing operations
$
(1.06
)
$
(0.58
)
Diluted from discontinued operations
$
—
$
(0.01
)
Net (loss)
$
(1.06
)
$
(0.59
)
Weighted average common shares
outstanding:
Basic
20,310
20,054
Diluted
20,310
20,054
CIRCOR INTERNATIONAL,
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
April 3, 2022
As Restated April 4,
2021
OPERATING ACTIVITIES
Net (loss)
$
(21,481
)
$
(11,796
)
Income (loss) from discontinued
operations, net of income taxes
—
(239
)
(Loss) from continuing operations, net of
tax
(21,481
)
(11,557
)
Adjustments to reconcile net (loss) to net
cash provided by (used in) operating activities:
Depreciation
5,000
6,509
Amortization
9,397
10,696
Change in provision for bad debt
expense
(89
)
(465
)
Write down of inventory
439
188
Compensation expense of share-based
plans
(84
)
1,402
Amortization of debt issuance costs
514
995
Deferred tax provision
—
(1,011
)
(Gain) on sale of businesses
—
(1,947
)
Other impairment charges
8,011
—
Changes in operating assets and
liabilities, net of effects of acquisitions and divestitures:
Trade accounts receivable
4,242
(3,707
)
Inventories
(15,465
)
(8,255
)
Prepaid expenses and other assets
(5,671
)
(8,875
)
Accounts payable, accrued expenses and
other liabilities
(737
)
(2,547
)
Net cash used in continuing operations
activities
(15,924
)
(18,574
)
Net cash used in discontinued operations
activities
—
(636
)
Net cash (used in) operating
activities
(15,924
)
(19,210
)
INVESTING ACTIVITIES
Additions of property, plant and
equipment
(3,607
)
(3,394
)
Proceeds from the sale of property, plant
and equipment
15
2
Proceeds from beneficial interest of
factored receivables
927
812
Proceeds from sale of business
—
7,193
Net cash (used in) provided by
investing activities
(2,665
)
4,613
FINANCING ACTIVITIES
Proceeds from long-term debt
51,325
63,500
Payments of long-term debt
(30,875
)
(46,500
)
Net Change in short-term borrowings
925
(22
)
Proceeds from the exercise of stock
options
—
151
Withholding tax payments on net share
settlements on equity rewards
(821
)
(3,274
)
Net cash used in financing
activities
20,554
13,855
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(712
)
(1,615
)
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
1,253
(2,357
)
Cash, cash equivalents and restricted cash
at beginning of period
61,374
68,607
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH AT END OF PERIOD
$
62,627
$
66,250
CIRCOR INTERNATIONAL,
INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
and per share data) (unaudited)
April 3, 2022
December 31, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
61,122
$
59,924
Trade accounts receivable, net
95,638
100,149
Inventories
134,540
123,343
Prepaid expenses and other current
assets
113,162
110,749
Total Current Assets
404,462
394,165
PROPERTY, PLANT AND EQUIPMENT, NET
150,546
154,461
OTHER ASSETS:
Goodwill
122,256
122,906
Intangibles, net
290,335
303,476
Deferred income taxes
764
756
Other assets
43,275
43,534
TOTAL ASSETS
$
1,011,638
$
1,019,298
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
83,134
$
83,382
Accrued expenses and other current
liabilities
75,711
81,998
Accrued compensation and benefits
30,560
26,551
Short-term borrowings and current portion
of long-term debt
2,531
1,611
Total Current Liabilities
191,936
193,542
LONG-TERM DEBT
532,580
511,694
DEFERRED INCOME TAXES
21,283
21,721
PENSION LIABILITY, NET
119,170
120,881
OTHER NON-CURRENT LIABILITIES
36,348
37,744
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; 21,683,147 and 21,633,131 shares issued at April
3, 2022 and December 31, 2021 respectively
217
217
Additional paid-in capital
454,269
454,852
Accumulated deficit
(219,562
)
(198,081
)
Common treasury stock, at cost (1,372,488
shares at April 3, 2022 and December 31, 2021)
(74,472
)
(74,472
)
Accumulated other comprehensive loss, net
of tax
(50,131
)
(48,800
)
Total Shareholders’ Equity
110,321
133,716
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
1,011,638
$
1,019,298
CIRCOR INTERNATIONAL,
INC.
SUMMARY OF ORDERS AND
BACKLOG
(in millions)
(unaudited)
Three Months Ended
April 3, 2022
As Restated April 4,
2021
ORDERS (1)
Aerospace & Defense
$
77.9
$
73.0
Industrial
143.7
153.7
Total Orders
$
221.6
$
226.7
April 3, 2022
As Restated April 4,
2021
BACKLOG (2)
Aerospace & Defense
$
199.7
$
198.2
Industrial
276.8
226.4
Total Backlog
$
476.5
$
424.6
Note 1: Orders do not include the foreign
exchange impact due to the re-measurement of customer backlog
amounts denominated in foreign currencies. Industrial includes $2.3
million and $5.5 million orders in Pipeline Engineering for 2022
and 2021 respectively.
Note 2: Backlog is calculated as current
period orders plus unshipped customer orders from prior periods for
which revenue has not been recognized. Industrial includes $1.2
million in Pipeline Engineering for 2021.
CIRCOR INTERNATIONAL,
INC.
SEGMENT INFORMATION
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
As reported
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
ORDERS
Aerospace & Defense
$
72,999
$
54,243
$
54,028
$
73,898
$
255,168
$
77,890
Industrial
153,695
155,959
139,691
146,065
595,410
143,727
Total
$
226,693
$
210,203
$
193,719
$
219,964
$
850,578
$
221,617
NET REVENUES
Aerospace & Defense
$
58,488
$
60,613
$
63,461
$
69,979
$
252,541
$
63,370
Industrial
117,963
126,977
126,248
134,938
506,126
122,285
Total
$
176,451
$
187,590
$
189,709
$
204,917
$
758,667
$
185,655
SEGMENT OPERATING INCOME
Aerospace & Defense
$
9,988
$
11,741
$
15,927
$
18,416
$
56,073
$
11,320
Industrial
5,834
7,237
7,124
8,700
28,896
6,857
Corporate expenses
(9,035
)
(7,950
)
(7,015
)
(6,636
)
(30,638
)
(7,770
)
Total
$
6,787
$
11,028
$
16,036
$
20,480
$
54,331
$
10,407
SEGMENT OPERATING MARGIN %
Aerospace & Defense
17.1
%
19.4
%
25.1
%
26.3
%
22.2
%
17.9
%
Industrial
4.9
%
5.7
%
5.6
%
6.4
%
5.7
%
5.6
%
Total
3.8
%
5.9
%
8.5
%
10.0
%
7.2
%
5.6
%
2021 As Restated
2022
Pipeline Engineering (1)
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
ORDERS - Industrial
$
5,531
$
5,192
$
6,575
$
7,121
$
24,419
$
2,260
NET REVENUES - Industrial
$
2,994
$
3,124
$
3,236
$
5,248
$
14,602
$
3,012
SEGMENT OP. INC. -Industrial
$
(2,479
)
$
(1,754
)
$
(2,470
)
$
(3,191
)
$
(9,893
)
$
(3,190
)
1) Excluding Pipeline Engineering business
as related to the Industrial Segment with respect to accounting
irregularities noted on March 14, 2022 8-K filing.
CIRCOR INTERNATIONAL,
INC.
SUPPLEMENTAL INFORMATION
REGARDING PIPELINE ENGINEERING
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
Results excluding Pipeline
Engineering
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
ORDERS
Aerospace & Defense
$
72,999
$
54,243
$
54,028
$
73,898
$
255,168
$
77,890
Industrial
148,164
150,767
133,116
138,944
570,991
141,467
Total
$
221,163
$
205,010
$
187,144
$
212,842
$
826,159
$
219,357
NET REVENUES
Aerospace & Defense
$
58,488
$
60,613
$
63,461
$
69,979
$
252,541
$
63,370
Industrial
114,969
123,853
123,012
129,690
491,524
119,273
Total
$
173,457
$
184,466
$
186,473
$
199,669
$
744,065
$
182,643
SEGMENT OPERATING INCOME
Aerospace & Defense
$
9,988
$
11,741
$
15,927
$
18,416
$
56,073
$
11,320
Industrial
8,313
8,991
9,594
11,891
38,789
10,047
Corporate expenses
(9,035
)
(7,950
)
(7,015
)
(6,636
)
(30,638
)
(7,770
)
Total
$
9,266
$
12,782
$
18,506
$
23,671
$
64,224
$
13,597
SEGMENT OPERATING MARGIN %
Aerospace & Defense
17.1
%
19.4
%
25.1
%
26.3
%
22.2
%
17.9
%
Industrial
7.2
%
7.3
%
7.8
%
9.2
%
7.9
%
8.4
%
Total
5.3
%
6.9
%
9.9
%
11.9
%
8.6
%
7.4
%
CIRCOR INTERNATIONAL,
INC.
RECONCILIATION OF KEY
PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING
PRINCIPLE TERMS
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
Net Cash (Used In) Provided By Operating
Activities
$
(19,210
)
$
8,866
$
10,197
$
10,595
$
10,448
$
(15,924
)
LESS
Capital expenditures, net of sale proceeds
(a)
3,392
2,644
4,541
4,168
14,745
3,592
FREE CASH FLOW
$
(22,602
)
$
6,222
$
5,656
$
6,427
$
(4,297
)
$
(19,516
)
Gross Debt
$
538,541
$
524,391
$
518,464
$
526,311
$
526,311
$
546,775
Less: Cash & Cash equivalents
64,837
58,862
58,013
59,924
59,924
61,122
GROSS DEBT, NET OF CASH
$
473,704
$
465,529
$
460,451
$
466,387
$
466,387
$
485,653
TOTAL SHAREHOLDERS' EQUITY
$
138,663
$
122,185
$
121,256
$
133,716
$
133,716
$
110,321
GROSS DEBT AS % OF EQUITY
388
%
429
%
428
%
394
%
394
%
496
%
GROSS DEBT, NET OF CASH AS % OF EQUITY
342
%
381
%
380
%
349
%
349
%
440
%
(a) Includes capital expenditures, net of
proceeds of asset sales from GAAP operating cash flow.
CIRCOR INTERNATIONAL,
INC.
RECONCILIATION OF KEY
PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING
PRINCIPLE TERMS
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
NET (LOSS) INCOME
$
(11,796
)
$
(18,784
)
$
(2,630
)
$
(28,427
)
$
(61,638
)
$
(21,481
)
LESS:
Restructuring related inventory charges
(recoveries), net
—
958
(60
)
(299
)
599
2,757
Restructuring charges, net
2,060
2,281
(312
)
205
4,234
6,447
Acquisition amortization
10,487
10,498
10,417
10,369
41,772
9,391
Acquisition depreciation
2,375
1,327
1,412
1,397
6,511
1,045
Special (recoveries) charges, net
(2,870
)
4,523
1,126
17,259
20,038
2,556
Goodwill Impairment charge
—
—
—
10,500
10,500
—
Income tax impact
(44
)
2,425
(596
)
(1,622
)
163
384
Net loss (income) from discontinued
operations
239
878
(2,510
)
(13
)
(1,406
)
—
ADJUSTED NET INCOME
$
451
$
4,106
$
6,847
$
9,369
$
20,773
$
1,099
(LOSS) EARNINGS PER COMMON SHARE
(Diluted)
$
(0.58
)
$
(0.91
)
$
(0.13
)
$
(1.38
)
$
(3.00
)
(1.06
)
LESS:
Restructuring related inventory
charges
—
0.05
—
(0.01
)
0.03
0.14
Restructuring charges, net
0.10
0.11
(0.02
)
0.01
0.21
0.32
Acquisition amortization
0.51
0.51
0.51
0.51
2.04
0.46
Acquisition depreciation
0.12
0.06
0.07
0.07
0.32
0.05
Special (recoveries) charges, net
(0.14
)
0.22
0.05
0.84
0.98
0.13
Impairment charge
—
—
—
0.51
0.51
—
Income tax impact
—
0.12
(0.03
)
(0.08
)
0.01
0.02
(Loss) earnings) per share from
discontinued operations
0.01
0.04
(0.12
)
—
(0.07
)
—
ADJUSTED EARNINGS PER SHARE
(Diluted)
$
0.02
$
0.20
$
0.33
$
0.46
$
1.01
$
0.05
CIRCOR INTERNATIONAL,
INC.
RECONCILIATION OF KEY
PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING
PRINCIPLE TERMS
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
NET (LOSS) INCOME
$
(11,796
)
$
(18,784
)
$
(2,629
)
$
(28,426
)
$
(61,635
)
$
(21,481
)
LESS:
Interest expense, net
8,369
7,958
7,997
8,040
32,365
9,456
Depreciation
6,509
5,460
5,536
5,348
22,854
5,000
Amortization
10,696
10,657
10,576
10,375
42,304
9,397
Provision for income taxes
(297
)
2,659
850
1,970
5,182
1,523
Loss (income) from discontinued
operations
239
878
(2,510
)
(13
)
(1,406
)
—
EBITDA
$
13,720
$
8,828
$
19,820
$
(2,706
)
$
39,664
$
3,895
LESS:
Restructuring related inventory charges
(recoveries)
—
958
(60
)
(299
)
599
2,757
Restructuring charges, net
2,060
2,281
(312
)
205
4,234
6,447
Special (recoveries) charges, net
(2,870
)
4,523
1,126
17,259
20,038
2,556
Goodwill impairment charge
—
—
—
10,500
10,500
—
ADJUSTED EBITDA
$
12,910
$
16,590
$
20,574
$
24,959
$
75,035
$
15,655
CIRCOR INTERNATIONAL,
INC.
RECONCILIATION OF KEY
PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING
PRINCIPLE TERMS
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
GAAP OPERATING INCOME (LOSS)
$
(5,266
)
$
(8,557
)
$
3,451
$
(18,952
)
$
(29,323
)
$
(11,789
)
LESS:
Restructuring related inventory charges
(recoveries)
—
958
(60
)
(299
)
599
2,757
Restructuring charges, net
2,060
2,281
(312
)
205
4,234
6,447
Acquisition amortization
10,487
10,498
10,417
10,369
41,772
9,391
Acquisition depreciation
2,375
1,327
1,412
1,397
6,511
1,045
Special (recoveries) charges, net
(2,870
)
4,523
1,126
17,259
20,038
2,556
Goodwill impairment charge
—
—
—
10,500
10,500
—
ADJUSTED OPERATING INCOME
$
6,787
$
11,029
$
16,035
$
20,479
$
54,331
$
10,407
GAAP OPERATING MARGIN
(3.0
) %
(4.6
) %
1.8
%
(9.2
) %
(3.9
) %
(6.3
) %
LESS:
Restructuring related inventory charges
(recoveries)
—
%
0.5
%
—
%
(0.1
) %
0.1
%
1.5
%
Restructuring charges, net
1.2
%
1.2
%
(0.2
) %
0.1
%
0.6
%
3.5
%
Acquisition amortization
5.9
%
5.6
%
5.5
%
5.1
%
5.5
%
5.1
%
Acquisition depreciation
1.3
%
0.7
%
0.7
%
0.7
%
0.9
%
0.6
%
Special (recoveries) charges, net
(1.6
) %
2.4
%
0.6
%
8.4
%
2.6
%
1.4
%
Goodwill impairment charge
—
%
—
%
—
%
5.1
%
1.4
%
—
%
ADJUSTED OPERATING MARGIN
3.8
%
5.9
%
8.5
%
10.0
%
7.2
%
5.6
%
Note regarding financial statements: Restated amounts are
computed independently each quarter; therefore, the sum of the
quarterly amounts may not equal the total amount for the respective
year due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220810005803/en/
Scott Solomon Senior Vice President Sharon Merrill Associates,
Inc. (857) 383-2409
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