Colfax Corporation (NYSE: CFX), a leading diversified technology
company, today announced its financial results for the fourth
quarter of 2020.
The Company earned fourth quarter net income
from continuing operations of $41 million, or $0.29 per share, and
adjusted earnings of $0.51 per share. These results compare with
prior year results of $0.24 and $0.61, respectively. Adjustments
are included in this release. Colfax fourth quarter net sales
increased 3% sequentially from its third quarter results to $828
million. These results are 4% lower than the prior year fourth
quarter results on an organic sales-per-day basis and 7% lower
overall. The Company also posted fourth quarter adjusted EBITA of
$113 million, or 13.6% of sales, a sequential increase of 20 basis
points over the third quarter. Prior year comparable margins were
15.1%. During the quarter, the Company achieved a significant
increase in cash flow, generating operating cash flow of $129
million and free cash flow of $96 million. “Our strong revenue,
earnings and cash flow performance demonstrates further recovery in
our markets and effective operating execution,” said Matt
Trerotola, Colfax President and CEO. “Customer demand in our
Fabrication Technology business strengthened at a faster pace than
expected, contributing to strong sales and profit performance.
Sales in our MedTech business started the quarter as expected and
showed strong relative performance despite constraints on elective
surgeries that deferred some procedures and related revenue. We
enter the new year with a clear path to healthier market
conditions, strong growth in financial results and accelerating
momentum.”
The Company also announced that it recently
completed the acquisition of two medical technology businesses.
LiteCure®, a market leader in therapeutic laser technology for
human and animal health, strengthens Colfax’s leadership
position in physical therapy and rehabilitation with higher growth
opportunities. Trilliant Surgical® provides innovative surgical
solutions in the high-growth foot and ankle market segment.
Combined with the previously announced acquisition of the
Scandinavian Total Ankle Replacement (STAR™) system, Colfax has
established a new platform to expand the Company’s leadership in
extremities.
“These acquisitions are consistent with our
strategy to accelerate the growth of our Medical Technology
portfolio through attractive additions in strategic, high-growth
and high-margin adjacency businesses,” said Mr. Trerotola. “These
transactions are immediately accretive to growth and gross margins,
with operating margins projected to rapidly expand with revenue
growth over time. Our disciplined acquisition program remains
active, and we expect to announce additional transactions this
year.”
In the fourth quarter, Colfax’s Fabrication
Technology segment sales decreased 2% on an organic sales-per-day
basis versus the prior year quarter and 7% overall, including a 1%
negative impact from unfavorable currency trends. The segment
reported adjusted EBITA margins of 15.4%, compared to 15.6% in the
prior year. Medical Technology segment sales in the quarter
decreased 7% on an organic sales-per-day basis compared to the
prior year and 7% overall, including a 2% benefit from positive
currency trends. The segment reported adjusted EBITA margins of
16.0%, compared to 19.2% in the prior year.
2021 Financial Outlook
Colfax also announced expectations for
significant growth in sales, earnings and cash flow in 2021.
Revenue is expected to grow 15-18% from the prior year,
sequentially improving throughout the year due to seasonality and
expected recovery in customer demand. The Company expects adjusted
earnings to grow at least 44% to $2.00 to $2.15 per diluted share
and is projecting free cash flow of $250 million or more. For
the first quarter 2021, Colfax expects adjusted earnings of $0.35
to $0.40 per diluted share.
Investor Day Scheduled for Thursday,
March 11, 2021
Colfax also announced it will host an Investor Day
on Thursday, March 11, 2021 from 9:00 a.m. to
approximately 1:00 p.m. Eastern time. The event will be
held virtually and include presentations from the Company’s
corporate and business leadership. To register for the event,
please visit the Investor Relations section of our website
https://ir.colfaxcorp.com/events-presentations.
Conference Call and Webcast
The Company will hold a conference call to
discuss its fourth quarter 2020 results and 2021 outlook beginning
at 8:00 a.m. Eastern today, which will be open to the public by
calling +1-877-303-7908 (U.S. callers) and +1-678-373-0875
(International callers) and referencing the conference ID number
3753307 and through webcast via Colfax’s website www.colfaxcorp.com
under the “Investors” section. Access to a supplemental slide
presentation can also be found at the Colfax website under the same
heading. Both the audio of this call and the slide presentation
will be archived on the website later today and will be available
until the next quarterly call.
About Colfax Corporation
Colfax Corporation is a leading diversified
technology company that provides specialty medical technologies and
fabrication technology products and services to customers around
the world, principally under the DJO and ESAB brands. Colfax
believes that its brands are among the most highly recognized in
each of the markets that it serves. The Company uses its Colfax
Business System (“CBS”), a comprehensive set of tools, processes
and values, to create superior value for customers, shareholders
and associates. Colfax’s common stock is traded on the NYSE under
the ticker “CFX.”
Non-GAAP Financial Measures and Other
Adjustments
Colfax has provided in this press release
financial information that has not been prepared in accordance with
accounting principles generally accepted in the United States of
America (“non-GAAP”). These non-GAAP financial measures may include
one or more of the following: adjusted net income from continuing
operations, adjusted net income margin from continuing operations,
adjusted net income per diluted share from continuing operations,
adjusted EBITA (earnings before interest, taxes and amortization),
adjusted EBITA margin, organic sales growth, and free cash flow.
Colfax also provides adjusted EBITA and adjusted EBITA margin on a
segment basis.
Adjusted net income from continuing operations
represents net income (loss) from continuing operations excluding
restructuring and other related charges, European Union Medical
Device Regulation (“MDR”) and other costs, debt extinguishment
charges, acquisition-related amortization and other non-cash
charges, and strategic transaction costs. Colfax also presents
adjusted net income margin from continuing operations, which is
subject to the same adjustments as adjusted net income from
continuing operations.
Adjusted net income per diluted share from
continuing operations represents adjusted income from continuing
operations divided by the number of adjusted diluted weighted
average shares. Both GAAP and non-GAAP diluted net income per
share data is computed based on weighted average shares
outstanding and, if there is net income from continuing operations
(rather than net loss) during the period, the dilutive impact of
share equivalents outstanding during the period. Diluted weighted
average shares outstanding and adjusted diluted weighted average
shares outstanding are calculated on the same basis except for the
net income or loss figure used in determining whether to include
such dilutive impact.
Adjusted EBITA represents net income (loss) from
continuing operations excluding restructuring and other related
charges, MDR and other costs, acquisition-related amortization and
other non-cash charges, and strategic transaction costs, as well as
income tax expense (benefit) and interest expense, net. Colfax
presents adjusted EBITA margin, which is subject to the same
adjustments as adjusted EBITA. Further, Colfax presents adjusted
EBITA (and adjusted EBITA margin) on a segment basis, which
excludes the impact of strategic transaction costs and
acquisition-related amortization and other non-cash charges from
segment operating income.
Organic sales growth (decline) excludes the
impact of acquisitions and foreign exchange rate fluctuations.
Free cash flow represents cash flow from
operating activities less purchases of property, plant and
equipment.
These non-GAAP financial measures assist Colfax
management in comparing its operating performance over time because
certain items may obscure underlying business trends and make
comparisons of long-term performance difficult, as they are of a
nature and/or size that occur with inconsistent frequency or relate
to discrete restructuring plans that are fundamentally different
from the ongoing productivity improvements of the Company. Colfax
management also believes that presenting these measures allows
investors to view its performance using the same measures that the
Company uses in evaluating its financial and business performance
and trends.
Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information calculated in accordance with GAAP. Investors are
encouraged to review the reconciliation of these non-GAAP measures
to their most directly comparable GAAP financial measures. A
reconciliation of non-GAAP financial measures presented above to
GAAP results has been provided in the financial tables included in
this press release.
In this document, Colfax presents
forward-looking adjusted EPS and free cash flow guidance. Colfax
does not provide such outlook on a GAAP basis because changes in
the items that Colfax excludes from GAAP to calculate these
measures can be dependent on future events that are less capable of
being controlled or reliably predicted by management and are not
part of Colfax’s routine operating activities. Additionally,
management does not forecast many of the excluded items for
internal use and therefore cannot create or rely on outlook done on
a GAAP basis. These excluded items could have a significant impact
on the Company’s GAAP financial results.
CAUTIONARY NOTE CONCERNING FORWARD
LOOKING STATEMENTS
This press release may contain forward-looking
statements, including forward-looking statements within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, but are not limited to,
statements concerning Colfax’s plans, objectives, expectations and
intentions and other statements that are not historical or current
fact. Forward-looking statements are based on Colfax’s current
expectations and involve risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
in such forward-looking statements. Factors that could cause
Colfax’s results to differ materially from current expectations
include, but are not limited to, risks related to the impact of the
COVID-19 global pandemic, including actions by governments,
businesses and individuals in response to the situation, such as
the scope and duration of the outbreak, the nature and
effectiveness of government actions and restrictive measures
implemented in response, material delays and cancellations of
medical procedures, supply chain disruptions, the impact on
creditworthiness and financial viability of customers, and other
impacts on Colfax’s business and ability to execute business
continuity plans, and the other factors detailed in Colfax’s
reports filed with the U.S. Securities and Exchange Commission
(SEC), including its most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q under the caption “Risk
Factors,” as well as the other risks discussed in Colfax’s filings
with the SEC. In addition, these statements are based on
assumptions that are subject to change. This press release speaks
only as of the date hereof. Colfax disclaims any duty to update the
information herein.
The term “Colfax” in reference to the activities
described in this press release may mean one or more of Colfax’s
global operating subsidiaries and/or their internal business
divisions and does not necessarily indicate activities engaged in
by Colfax Corporation.
Contact:Mike MacekVice
President, FinanceColfax
Corporation+1-302-252-9129investorrelations@colfaxcorp.com
Colfax
CorporationConsolidated Statements of
OperationsDollars in thousands, except per share
data(Unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
Net sales |
$ |
828,122 |
|
|
|
$ |
888,373 |
|
|
|
$ |
3,070,769 |
|
|
|
$ |
3,327,458 |
|
|
Cost of sales |
473,437 |
|
|
|
492,530 |
|
|
|
1,782,664 |
|
|
|
1,926,402 |
|
|
Gross profit |
354,685 |
|
|
|
395,843 |
|
|
|
1,288,105 |
|
|
|
1,401,056 |
|
|
Selling, general and
administrative expense |
281,417 |
|
|
|
285,861 |
|
|
|
1,087,401 |
|
|
|
1,132,149 |
|
|
Restructuring and other
related charges |
14,824 |
|
|
|
18,098 |
|
|
|
38,413 |
|
|
|
65,295 |
|
|
Operating income |
58,444 |
|
|
|
91,884 |
|
|
|
162,291 |
|
|
|
203,612 |
|
|
Pension settlement loss |
— |
|
|
|
— |
|
|
|
— |
|
|
|
33,616 |
|
|
Interest expense, net |
25,615 |
|
|
|
32,683 |
|
|
|
104,262 |
|
|
|
119,503 |
|
|
Income from continuing
operations before income taxes |
32,829 |
|
|
|
59,201 |
|
|
|
58,029 |
|
|
|
50,493 |
|
|
Income tax expense
(benefit) |
(8,691) |
|
|
|
24,790 |
|
|
|
(6,053) |
|
|
|
31,630 |
|
|
Net income from continuing
operations |
41,520 |
|
|
|
34,411 |
|
|
|
64,082 |
|
|
|
18,863 |
|
|
Income (loss) from
discontinued operations, net of taxes |
(7,405) |
|
|
|
(49,744) |
|
|
|
(18,311) |
|
|
|
(536,009) |
|
|
Net income (loss) |
34,115 |
|
|
|
(15,333) |
|
|
|
45,771 |
|
|
|
(517,146) |
|
|
Less: income attributable to
noncontrolling interest, net of taxes |
903 |
|
|
|
1,530 |
|
|
|
3,146 |
|
|
|
10,500 |
|
|
Net income (loss) attributable
to Colfax Corporation |
$ |
33,212 |
|
|
|
$ |
(16,863) |
|
|
|
$ |
42,625 |
|
|
|
$ |
(527,646) |
|
|
Net income (loss) per share -
basic |
|
|
|
|
|
|
|
Continuing operations |
$ |
0.30 |
|
|
|
$ |
0.24 |
|
|
|
$ |
0.45 |
|
|
|
$ |
0.10 |
|
|
Discontinued operations |
$ |
(0.05) |
|
|
|
$ |
(0.36) |
|
|
|
$ |
(0.13) |
|
|
|
$ |
(3.99) |
|
|
Consolidated operations |
$ |
0.24 |
|
|
|
$ |
(0.12) |
|
|
|
$ |
0.31 |
|
|
|
$ |
(3.89) |
|
|
Net income (loss) per share -
diluted |
|
|
|
|
|
|
|
Continuing operations |
$ |
0.29 |
|
|
|
$ |
0.24 |
|
|
|
$ |
0.44 |
|
|
|
$ |
0.10 |
|
|
Discontinued operations |
$ |
(0.05) |
|
|
|
$ |
(0.36) |
|
|
|
$ |
(0.13) |
|
|
|
$ |
(3.99) |
|
|
Consolidated operations |
$ |
0.24 |
|
|
|
$ |
(0.12) |
|
|
|
$ |
0.31 |
|
|
|
$ |
(3.89) |
|
|
Colfax
CorporationReconciliation of GAAP to Non-GAAP
Financial MeasuresDollars in millions, except per
share data(Unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
Adjusted Net Income
and Adjusted Net Income Per Share |
|
|
|
|
|
Net income from continuing
operations attributable to Colfax Corporation (1) (GAAP) |
$ |
40.6 |
|
|
|
$ |
32.9 |
|
|
$ |
60.9 |
|
|
|
$ |
14.2 |
|
|
Restructuring and other
related charges - pretax (2) |
16.5 |
|
|
|
23.0 |
|
|
45.0 |
|
|
|
73.7 |
|
|
MDR and other costs - pretax
(3) |
2.4 |
|
|
|
— |
|
|
6.9 |
|
|
|
— |
|
|
Debt extinguishment charges -
pretax |
— |
|
|
|
— |
|
|
— |
|
|
|
0.8 |
|
|
Acquisition-related
amortization and other non-cash charges - pretax (4) |
35.8 |
|
|
|
14.5 |
|
|
143.9 |
|
|
|
138.5 |
|
|
Strategic transaction costs - pretax (5) |
(0.4) |
|
|
|
4.4 |
|
|
2.8 |
|
|
|
61.0 |
|
|
Pension settlement loss -
pretax |
— |
|
|
|
— |
|
|
— |
|
|
|
33.6 |
|
|
Tax adjustment (6) |
(24.4) |
|
|
|
8.6 |
|
|
(65.8) |
|
|
|
(46.8) |
|
|
Adjusted net income from
continuing operations (non-GAAP) |
$ |
70.6 |
|
|
|
$ |
83.4 |
|
|
$ |
193.8 |
|
|
|
$ |
275.2 |
|
|
Adjusted net income margin
from continuing operations |
8.5 |
|
% |
|
9.4 |
% |
|
6.3 |
|
% |
|
8.3 |
|
% |
Weighted-average shares
outstanding - diluted (in millions) |
138.4 |
|
|
|
137.6 |
|
|
138.9 |
|
|
|
136.7 |
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share
- diluted from continuing operations (non-GAAP) |
$ |
0.51 |
|
|
|
$ |
0.61 |
|
|
$ |
1.40 |
|
|
|
$ |
2.01 |
|
|
|
|
|
|
|
|
|
|
Net income per share - diluted
from continuing operations (GAAP) |
$ |
0.29 |
|
|
|
$ |
0.24 |
|
|
$ |
0.44 |
|
|
|
$ |
0.10 |
|
|
__________
(1) Net income from continuing operations
attributable to Colfax Corporation for the respective periods is
calculated using Net income from continuing operations less the
continuing operations component of the income attributable to
noncontrolling interest, net of taxes, of $0.9 million and $3.1
million for the three months and year ended December 31, 2020 and
$1.5 million and $4.6 million for the three months and year ended
December 31, 2019, respectively. Net income from continuing
operations attributable to Colfax Corporation for the year ended
December 31, 2020 includes a $6.8 million discrete tax benefit
associated with the filing of timely elected changes to U.S.
Federal tax returns to credit rather than to deduct foreign taxes.
The discrete benefit has been excluded from the effective tax rates
used to calculate adjusted net income and adjusted net income per
share.
(2) Includes $1.7 million and $6.6 million of
expense classified as Cost of sales on the Company’s Consolidated
Statements of Operations for the three months and year ended
December 31, 2020, respectively, and $4.9 million and $8.5 million
of expense classified as Cost of sales on the Company’s
Consolidated Statements of Operations for the three months and year
ended December 31, 2019, respectively.
(3) Primarily related to costs specific to
compliance with medical device reporting regulations and other
requirements of the European Union Medical Device Regulation of
2017.
(4) Includes amortization of acquired
intangibles and fair value charges on acquired inventory.
(5) Includes costs incurred for the acquisition
of DJO.
(6) The effective tax rates used to calculate
adjusted net income and adjusted net income per share were 18.0%
and 23.3% for the three months and year ended December 31, 2020 and
16.0% and 21.9% for the three months and year ended December 31,
2019, respectively.
Colfax
CorporationReconciliation of GAAP to Non-GAAP
Financial MeasuresDollars in
millions(Unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
(Dollars in millions) |
Net income from continuing
operations (GAAP) |
$ |
41.5 |
|
|
|
$ |
34.4 |
|
|
$ |
64.1 |
|
|
|
$ |
18.9 |
|
Income tax expense
(benefit) |
(8.7) |
|
|
|
24.8 |
|
|
(6.1) |
|
|
|
31.6 |
|
Interest expense, net(1) |
25.6 |
|
|
|
32.7 |
|
|
104.3 |
|
|
|
119.5 |
|
Pension settlement loss |
— |
|
|
|
— |
|
|
— |
|
|
|
33.6 |
|
Restructuring and other
related charges(2) |
16.5 |
|
|
|
23.0 |
|
|
45.0 |
|
|
|
73.7 |
|
MDR and other costs(3) |
2.4 |
|
|
|
— |
|
|
6.9 |
|
|
|
— |
|
Strategic transaction
costs(4) |
(0.4) |
|
|
|
4.4 |
|
|
2.8 |
|
|
|
61.0 |
|
Acquisition-related
amortization and other non-cash charges(5) |
35.8 |
|
|
|
14.5 |
|
|
143.9 |
|
|
|
138.5 |
|
Adjusted EBITA (non-GAAP) |
$ |
112.8 |
|
|
|
$ |
133.8 |
|
|
$ |
361.0 |
|
|
|
$ |
476.9 |
|
Net income margin from
continuing operations (GAAP) |
5.0 |
|
% |
|
3.9 |
% |
|
2.1 |
|
% |
|
0.6 |
% |
Adjusted EBITA margin
(non-GAAP) |
13.6 |
|
% |
|
15.1 |
% |
|
11.8 |
|
% |
|
14.3 |
% |
|
|
|
|
|
|
|
|
__________(1) Includes $0.8 million of debt
extinguishment charges in the first quarter of 2019.(2)
Restructuring and other related charges includes $1.7 million and
$6.6 million of expense classified as Cost of sales on the
Company’s Consolidated Statements of Operations for the three
months and year ended December 31, 2020, respectively, and $4.9
million and $8.5 million of expense classified as Cost of sales on
the Company’s Consolidated Statements of Operations for the three
months and year ended December 31, 2019, respectively.(3) Primarily
related to costs specific to compliance with medical device
reporting regulations and other requirements of the European Union
Medical Device Regulation of 2017.(4) Includes costs incurred for
the acquisition of DJO.(5) Includes amortization of acquired
intangibles and fair value charges on acquired inventory.
Colfax
CorporationReconciliation of GAAP to non-GAAP
Financial MeasuresChange in
SalesDollars in
millions(Unaudited)
|
Net Sales |
|
Fabrication Technology |
|
Medical Technology |
|
Total Colfax |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
December 31, 2019 |
$ |
554.7 |
|
|
|
|
|
$ |
333.7 |
|
|
|
|
|
$ |
888.4 |
|
|
|
|
Components of Change: |
|
|
|
|
|
|
|
|
|
|
|
Existing businesses(1) |
(29.0) |
|
|
|
(5.2) |
|
% |
|
(36.6) |
|
|
|
(11.0) |
|
% |
|
(65.6) |
|
|
|
(7.4) |
|
% |
Acquisitions(2) |
— |
|
|
|
— |
|
% |
|
7.1 |
|
|
|
2.1 |
|
% |
|
7.1 |
|
|
|
0.8 |
|
% |
Foreign currency translation(3) |
(7.1) |
|
|
|
(1.3) |
|
% |
|
5.3 |
|
|
|
1.6 |
|
% |
|
(1.8) |
|
|
|
(0.2) |
|
% |
|
(36.1) |
|
|
|
(6.5) |
|
% |
|
(24.2) |
|
|
|
(7.3) |
|
% |
|
(60.3) |
|
|
|
(6.8) |
|
% |
For the three months ended
December 31, 2020 |
$ |
518.6 |
|
|
|
|
|
$ |
309.5 |
|
|
|
|
|
$ |
828.1 |
|
|
|
|
(1) Excludes the impact of foreign exchange rate fluctuations
and acquisitions, thus providing a measure of change due to factors
such as price, product mix and volume.(2) Represents the
incremental sales from acquisitions.(3) Represents the
difference between prior year sales valued at the actual prior year
foreign exchange rates and prior year sales valued at current year
foreign exchange rates.
|
Net Sales |
|
Fabrication Technology |
|
Medical Technology(1) |
|
Total Colfax |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December
31, 2019 |
$ |
2,247.0 |
|
|
|
|
|
$ |
1,249.6 |
|
|
|
|
|
$ |
3,496.6 |
|
|
|
|
Components of Change: |
|
|
|
|
|
|
|
|
|
|
|
Existing businesses(2) |
(218.4) |
|
|
|
(9.7) |
|
% |
|
(139.1) |
|
|
|
(11.1) |
|
% |
|
(357.5) |
|
|
|
(10.2) |
|
% |
Acquisitions(3) |
— |
|
|
|
— |
|
% |
|
7.1 |
|
|
|
0.6 |
|
% |
|
7.1 |
|
|
|
0.2 |
|
% |
Foreign currency translation(4) |
(78.5) |
|
|
|
(3.5) |
|
% |
|
3.1 |
|
|
|
0.2 |
|
% |
|
(75.4) |
|
|
|
(2.2) |
|
% |
|
(296.9) |
|
|
|
(13.2) |
|
% |
|
(128.9) |
|
|
|
(10.3) |
|
% |
|
(425.8) |
|
|
|
(12.2) |
|
% |
For the year ended December
31, 2020 |
$ |
1,950.1 |
|
|
|
|
|
$ |
1,120.7 |
|
|
|
|
|
$ |
3,070.8 |
|
|
|
|
(1) Medical Technology prior year Net sales and components of
change are based on or derived from Management’s internal reports.
On the Company’s 2020 Form 10-K, Medical Technology prior year Net
sales include only sales subsequent to February 22, 2019, the date
of the DJO acquisition, and sales prior to the DJO acquisition are
included in the Acquisitions line item of the change in sales
reconciliation.(2) Excludes the impact of foreign exchange
rate fluctuations and acquisitions, thus providing a measure of
change due to factors such as price, product mix and
volume.(3) Represents the incremental sales from
acquisitions.(4) Represents the difference between prior year
sales valued at the actual prior year foreign exchange rates and
prior year sales valued at current year foreign exchange rates.
Colfax
CorporationConsolidated Balance
SheetsDollars in thousands, except share
amounts(Unaudited)
|
December 31, 2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
$ |
97,068 |
|
|
|
$ |
109,632 |
|
|
Trade receivables, less allowance for credit losses of $37,666 and
$32,634 |
517,006 |
|
|
|
561,865 |
|
|
Inventories, net |
564,822 |
|
|
|
571,558 |
|
|
Prepaid expenses |
69,515 |
|
|
|
70,429 |
|
|
Other current assets |
113,418 |
|
|
|
90,761 |
|
|
Total current assets |
1,361,829 |
|
|
|
1,404,245 |
|
|
Property, plant and equipment, net |
486,960 |
|
|
|
491,241 |
|
|
Goodwill |
3,314,541 |
|
|
|
3,202,517 |
|
|
Intangible assets, net |
1,663,446 |
|
|
|
1,719,019 |
|
|
Lease asset - right of use |
173,942 |
|
|
|
173,320 |
|
|
Other assets |
350,831 |
|
|
|
396,490 |
|
|
Total assets |
$ |
7,351,549 |
|
|
|
$ |
7,386,832 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Current portion of long-term debt |
$ |
27,074 |
|
|
|
$ |
27,642 |
|
|
Accounts payable |
330,251 |
|
|
|
359,782 |
|
|
Accrued liabilities |
454,333 |
|
|
|
469,890 |
|
|
Total current liabilities |
811,658 |
|
|
|
857,314 |
|
|
Long-term debt, less current portion |
2,204,169 |
|
|
|
2,284,184 |
|
|
Non-current lease liability |
139,230 |
|
|
|
136,399 |
|
|
Other liabilities |
608,618 |
|
|
|
619,307 |
|
|
Total liabilities |
3,763,675 |
|
|
|
3,897,204 |
|
|
Equity: |
|
|
|
Common stock, $0.001 par value; 400,000,000 shares authorized;
118,496,687 and 118,059,082 issued and outstanding as of December
31, 2020 and 2019, respectively |
118 |
|
|
|
118 |
|
|
Additional paid-in capital |
3,478,008 |
|
|
|
3,445,597 |
|
|
Retained earnings |
517,367 |
|
|
|
479,560 |
|
|
Accumulated other comprehensive loss |
(452,106) |
|
|
|
(483,845) |
|
|
Total Colfax Corporation
equity |
3,543,387 |
|
|
|
3,441,430 |
|
|
Noncontrolling interest |
44,487 |
|
|
|
48,198 |
|
|
Total equity |
3,587,874 |
|
|
|
3,489,628 |
|
|
Total liabilities and
equity |
$ |
7,351,549 |
|
|
|
$ |
7,386,832 |
|
|
Colfax
CorporationConsolidated Statements of Cash
FlowsDollars
in thousands(Unaudited)
|
Year Ended |
|
December 31, 2020 |
|
December 31, 2019 |
Cash flows from
operating activities: |
|
|
|
Net income (loss) |
$ |
45,771 |
|
|
|
$ |
(517,146) |
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
Divestiture impairment loss |
— |
|
|
|
449,000 |
|
|
Depreciation, amortization and other impairment charges |
246,229 |
|
|
|
236,026 |
|
|
Stock-based compensation expense |
28,911 |
|
|
|
21,960 |
|
|
Non-cash interest expense |
5,739 |
|
|
|
9,937 |
|
|
Deferred income tax benefit |
(29,218) |
|
|
|
(590) |
|
|
(Gain) loss on sale of property, plant and equipment |
(491) |
|
|
|
61 |
|
|
Gain on sale of business |
— |
|
|
|
(14,233) |
|
|
Pension settlement loss |
— |
|
|
|
77,390 |
|
|
Changes in operating assets and liabilities: |
|
|
|
Trade receivables, net |
42,688 |
|
|
|
49,924 |
|
|
Inventories, net |
23,787 |
|
|
|
(44,887) |
|
|
Accounts payable |
(30,747) |
|
|
|
(119,325) |
|
|
Other operating assets and liabilities |
(30,734) |
|
|
|
(17,169) |
|
|
Net cash provided by
operating activities |
301,935 |
|
|
|
130,948 |
|
|
Cash flows from
investing activities: |
|
|
|
Purchases of property, plant and equipment |
(114,785) |
|
|
|
(125,402) |
|
|
Proceeds from sale of property, plant and equipment |
9,552 |
|
|
|
7,781 |
|
|
Acquisitions, net of cash received |
(69,846) |
|
|
|
(3,151,056) |
|
|
Proceeds from sale of business, net |
— |
|
|
|
1,635,920 |
|
|
Net cash used in
investing activities |
(175,079) |
|
|
|
(1,632,757) |
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds from borrowings on term credit facility |
— |
|
|
|
1,725,000 |
|
|
Payments under term credit facility |
(40,000) |
|
|
|
(1,387,500) |
|
|
Proceeds from borrowings on revolving credit facilities and
other |
860,681 |
|
|
|
2,045,083 |
|
|
Repayments of borrowings on revolving credit facilities and
other |
(938,997) |
|
|
|
(2,273,802) |
|
|
Proceeds from borrowings on senior unsecured notes |
— |
|
|
|
1,000,000 |
|
|
Payment of debt issuance costs |
(4,560) |
|
|
|
(23,380) |
|
|
Proceeds from prepaid stock purchase contracts |
— |
|
|
|
377,814 |
|
|
Proceeds from issuance of common stock, net |
3,500 |
|
|
|
11,879 |
|
|
Payment for noncontrolling interest share repurchase |
— |
|
|
|
(93,505) |
|
|
Deferred consideration payments and other |
(12,275) |
|
|
|
(12,095) |
|
|
Net cash provided by
(used in) financing activities |
(131,651) |
|
|
|
1,369,494 |
|
|
Effect of foreign
exchange rates on Cash and cash equivalents and Restricted
cash |
(3,768) |
|
|
|
(3,072) |
|
|
Decrease in Cash and cash
equivalents and Restricted cash |
(8,563) |
|
|
|
(135,387) |
|
|
Cash and cash equivalents and
Restricted Cash, beginning of period |
109,632 |
|
|
|
245,019 |
|
|
Cash and cash
equivalents and Restricted cash, end of period |
$ |
101,069 |
|
|
|
$ |
109,632 |
|
|
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