RICHMOND, Va., May 8 /PRNewswire-FirstCall/ -- Colfax Corporation
(NYSE: CFX), a global leader in engineered fluid handling products
and systems, today announced financial results for the first
quarter ended April 3, 2009. On a year-over-year basis, highlights
for the quarter include: First quarter of 2009 (all comparisons
versus the first quarter of 2008) -- Net income of $6.9 million (16
cents per share - basic and diluted); Adjusted net income (as
defined below) of $10.4 million (24 cents per share), an increase
of 2.1% including negative currency effects of 5 cents per share --
Net sales of $136.3 million, an increase of 4.3%; Organic sales
growth (as defined below) of 17.9% -- Operating income of $11.8
million; Adjusted operating income (as defined below) of $17.1
million, a decrease of 6.6% including negative currency effects of
$3.4 million -- EBITDA (as defined below) of $15.2 million;
Adjusted EBITDA (as defined below) of $20.5 million, a decrease of
7.0% including negative currency effects of $3.7 million -- First
quarter orders of $120.8 million, a decrease of 33.0%; Organic
order decline (as defined below) of 25.5% -- Backlog of $305.6
million at period end Adjusted net income, adjusted net income per
share, adjusted operating income, EBITDA, adjusted EBITDA, organic
sales growth and organic order growth are not financial measures
calculated in accordance with generally accepted accounting
principles in the U.S. ("GAAP"). See below for a description of the
measures' usefulness and a reconciliation of these measures to
their most directly comparable GAAP financial measures. "We had a
solid first quarter thanks to our sizable backlog entering 2009,"
said John Young, president and CEO of Colfax Corporation. "Organic
sales were up 18% driven by particularly strong growth in the
commercial marine, oil and gas, power generation and global navy
end markets. However, global economic conditions continued to
deteriorate in the quarter as reflected in our organic orders which
declined 25%. We've initiated several cost reduction measures
across the company in response to the decline in demand. We believe
economic conditions could remain difficult for the balance of the
year and now expect organic sales for the year to be down between
2% and 4%. We expect adjusted earnings per share of $1.00 to $1.07
for 2009 which includes about 7 cents of negative currency impact
compared to our prior guidance of $1.10 to $1.17." He added, "We
will remain agile and will continue to make adjustments to our
businesses as conditions warrant. Our strong financial position
provides flexibility and allows us to pursue acquisitions while
also funding our breakthrough growth initiatives. Despite current
economic conditions, we'll continue to deliver unsurpassed value to
our customers and execute on our long term strategies to drive
profitable sales growth." Non-GAAP Financial Measures Colfax has
provided in this press release financial information that has not
been prepared in accordance with GAAP. These non-GAAP financial
measures are adjusted net income, adjusted net income per share,
adjusted operating income, EBITDA, adjusted EBITDA, organic sales
growth and organic order growth. Adjusted net income, adjusted net
income per share, adjusted operating income and adjusted EBITDA
exclude asbestos liability and defense cost (income) and asbestos
coverage litigation expense, certain legacy legal charges, certain
due diligence costs, certain severance and asset impairment charges
as well as one time initial public offering-related costs to the
extent they impact the periods presented. Adjusted net income also
reflects interest expense as if the initial public offering (IPO)
had occurred at the beginning of 2007 and presents income taxes at
an effective tax rate of 32% in 2009 and 34% in 2008. Adjusted net
income per share in 2008 assumes the 44,006,026 shares outstanding
at the closing of the IPO to be outstanding since January 1, 2007.
Organic sales growth and organic order growth (decline) exclude the
impact of foreign exchange rate fluctuations. These non-GAAP
financial measures assist Colfax in comparing its operating
performance on a consistent basis because, among other things, they
remove the impact of changes in our capital structure and asset
base, non-recurring items such as IPO-related costs, legacy
asbestos issues (except in the case of EBITDA) and items outside
the control of its operating management team. 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. Conference Call and Webcast
Colfax will host a conference call to provide details about its
results and business strategy on Friday, May 8 at 8:00 a.m. EDT.
The call will be open to the public through 719-325-4794 or
877-857-6176 and webcast via Colfax's website at
http://www.colfaxcorp.com/ under the "Investor Relations" 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 global leader in
critical fluid-handling solutions, including the manufacture of
positive displacement industrial pumps and valves used in global
oil & gas, power generation, marine, naval and a variety of
other industrial applications. Key product brands include
Allweiler, Fairmount Automation, Houttuin, Imo, LSC, Portland
Valve, Tushaco, Warren and Zenith. Colfax is traded on the NYSE
under the ticker "CFX." Additional information about Colfax's
products, businesses and practices is available at
http://www.colfaxcorp.com/ Cautionary Note Concerning Forward
Looking Statements This press release contains forward-looking
statements, including forward-looking statements within the meaning
of the 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
facts. 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 factors detailed in Colfax's
reports filed with the U.S. Securities and Exchange Commission as
well as its Annual Report on Form 10-K under the caption "Risk
Factors". In addition, these statements are based on a number of
assumptions that are subject to change. This press release speaks
only as of this date. Colfax disclaims any duty to update the
information herein. Colfax Corporation Condensed Consolidated
Statements of Operations Dollars in thousands, except per share
data (unaudited) Three Months Ended ------------------ April 3,
2009 March 28, 2008 ------------- -------------- Net sales $136,323
$130,651 Cost of sales 88,308 82,473 ------ ------ Gross profit
48,015 48,178 Selling, general and administrative expenses 30,187
28,507 Research and development expenses 1,407 1,381 Asbestos
liability and defense costs 1,645 278 Asbestos coverage litigation
expenses 2,966 3,139 ----- ----- Operating income 11,810 14,873
Interest expense 1,846 4,497 ----- ----- Income before income taxes
9,964 10,376 Provision for income taxes 3,103 3,578 ----- ----- Net
income $6,861 $6,798 ====== ====== Net income per share-basic and
diluted $0.16 $0.31 ===== ===== Colfax Corporation Reconciliation
of GAAP to non-GAAP Financial Measures Dollars in thousands, except
per share data (unaudited) Three Months Ended ------------------
April 3, 2009 March 28, 2008 ------------- -------------- EBITDA
Net income $6,861 $6,798 Interest expense 1,846 4,497 Provision for
income taxes 3,103 3,578 Depreciation and amortization 3,373 3,695
----- ----- EBITDA $15,183 $18,568 ======= ======= EBITDA margin
11.1% 14.2% Adjusted EBITDA Net income $6,861 $6,798 Interest
expense 1,846 4,497 Provision for income taxes 3,103 3,578
Depreciation and amortization 3,373 3,695 Severance and asset
impairment costs 661 - Asbestos liability and defense costs 1,645
278 Asbestos coverage litigation expense 2,966 3,139 ----- -----
Adjusted EBITDA $20,455 $21,985 ======= ======= Adjusted EBITDA
margin 15.0% 16.8% Adjusted Net Income and Adjusted Earnings per
Share Net income $6,861 $6,798 Severance and asset impairment costs
661 - Asbestos liability and defense costs 1,645 278 Asbestos
coverage litigation expense 2,966 3,139 Interest adjustment to
effect IPO at beginning of period - 1,577 Tax adjustment to
effective rate of 32% and 34%, respectively (1,773) (1,648) ------
------ Adjusted net income $10,360 $10,144 ======= ======= Adjusted
net income margin 7.6% 7.8% Weighted average shares outstanding -
diluted 43,312,306 - Shares outstanding at closing of IPO -
44,006,026 Adjusted net income per share $0.24 $0.23 ===== =====
Net income per share-basic and diluted in accordance with GAAP
$0.16 $0.31 ===== ===== Adjusted Operating Income Operating income
$11,810 $14,873 Severance and asset impairment costs 661 - Asbestos
liability and defense costs 1,645 278 Asbestos coverage litigation
expense 2,966 3,139 ----- ----- Adjusted operating income $17,082
$18,290 ======= ======= Adjusted operating income margin 12.5%
14.0% Colfax Corporation Sales and Orders Growth Dollars in
millions (unaudited) Sales Orders Backlog at ------- --------
Period $ % $ % End -------- -------- ---------- Three Months Ended
March 28, 2008 $130.7 $180.3 $353.6 Components of Growth: Existing
Businesses 23.4 17.9% (45.9) (25.5%) (9.8) (2.8%) Foreign Currency
Translation (17.8) (13.6%) (13.6) (7.5%) (38.2) (10.8%) ----- -----
----- Total Growth 5.6 4.3% (59.5) (33.0%) (48.0) (13.6%) ------
------ ------ Three Months Ended April 3, 2009 $136.3 $120.8 $305.6
====== ====== ====== Colfax Corporation Reconciliation of Projected
2009 Net Income Per Share to Adjusted Net Income Per Share Amounts
in Dollars (unaudited) EPS Range --------- Projected net income per
share - fully diluted $0.69 $0.76 Severance and asset impairment
costs * 0.01 0.01 Asbestos coverage litigation 0.19 0.19 Asbestos
liability and defense costs 0.11 0.11 ---- ---- Projected adjusted
net income per share - fully diluted $1.00 $1.07 ===== ===== *
Actual costs for first quarter 2009
http://www.newscom.com/cgi-bin/prnh/20080508/DC21739LOGO
http://photoarchive.ap.org/ DATASOURCE: Colfax Corporation CONTACT:
Mitzi Reynolds, Vice President, Investor Relations of Colfax
Corporation, +1-804-327-5689 Web Site: http://www.colfaxcorp.com/
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