UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 31, 2014
CIRCOR INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
|
| | |
DELAWARE | 001-14962 | 04-3477276 |
(State or Other Jurisdiction of Incorporation or Organization) | (Commission file number) | (I.R.S. Employer Identification No.) |
30 CORPORATE DRIVE, SUITE 200
BURLINGTON, MASSACHUSETTS 01803-4238
(Address of principal executive offices) (Zip Code)
(781) 270-1200
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Item 2.02 Results of Operations and Financial Condition.
By press release dated October 31, 2014, the Company announced its financial results for the three months ended September 28, 2014. The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02 of Form 8-K and the Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by special reference in such filing.
In the press release and accompanying supplemental information, the Company uses the following non-GAAP financial measures: free cash flow, EBIT, EBITDA, adjusted operating income, adjusted net income, and adjusted earnings per share (EPS). Management of the Company believes that free cash flow (defined as net cash flow from operating activities, less capital expenditures) is an important measure of its liquidity as well as its ability to service long-term debt, fund future growth and to provide a return to shareholders. We also believe this free cash flow definition does not have any material limitations. EBIT (defined as net income plus interest expense, net, plus provision for income taxes), EBITDA (defined as net income plus interest expense, net, plus provision for income taxes, plus depreciation and amortization), adjusted operating income (defined as operating income, excluding the impact of restructuring related inventory, impairment and special charges/gains), adjusted net income (defined as net income, excluding the impact of restructuring related inventory, impairment and special charges/gains, net of tax) and adjusted EPS (defined as earnings per common share, excluding restructuring related inventory, impairment and special charges/gains, net of tax) are provided because management believes these measurements are useful for investors and financial institutions to analyze and compare companies on the basis of operating performance. Free cash flow, EBIT, EBITDA, adjusted operating income, adjusted net income, and adjusted EPS are not measurements for financial performance under GAAP and should not be construed as a substitute for cash flows, operating income, net income or earnings per share. Free cash flow, EBIT, EBITDA, adjusted operating income, adjusted net income, and adjusted EPS as we have calculated here, may not necessarily be comparable to similarly titled measures used by other companies. A reconciliation of free cash flow, EBIT, EBITDA, adjusted operating income, adjusted net income, and adjusted EPS to the most directly comparable GAAP financial measure is provided in the supplemental information table titled “Reconciliation of Key Performance Measures to Commonly Used Generally Accepted Accounting Principle Terms” which is included as an attachment to the press release.
Item 9.01 Financial Statements and Exhibits.
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Exhibit No. | Description |
99.1 | Press Release regarding Earnings, Dated October 31, 2014 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 31, 2014 CIRCOR INTERNATIONAL, INC.
/s/ Rajeev Bhalla
By: Rajeev Bhalla
| |
Title: | Executive Vice President and Chief Financial Officer |
EXHIBIT 99.1
CIRCOR Reports Third-Quarter 2014 Financial Results
Burlington, MA - October 31, 2014 - CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for markets including oil & gas, power generation and aerospace & defense, today announced financial results for the third quarter ended September 28, 2014.
Third-Quarter 2014 Highlights
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• | Adjusted operating margin expanded 30 basis points to 11.4% |
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• | Year-to-date free cash flow was $35.7 million |
“CIRCOR’s third-quarter results demonstrate the continued execution of our strategy,” said Scott Buckhout, CIRCOR President and Chief Executive Officer. “Revenues were $204 million and margins expanded to 11.4%, 30 bps over a strong quarter last year. Our ongoing restructuring actions and productivity initiatives are on track and are having a measurable impact on our bottom-line performance.”
“Orders in our Energy business were up 18% during the third quarter and we expect the momentum to continue into the fourth quarter,” said Buckhout. “Quoting activity remains solid in the upstream Oil & Gas and power markets. Within Aerospace & Defense, orders were impacted by the exit of certain landing gear product lines. Overall backlog increased 5% sequentially to $432 million.”
“Going forward, we remain focused on growth, margin expansion and strong free cash flow,” concluded Buckhout.
Fourth-Quarter 2014 Guidance
For the fourth quarter of 2014, the Company expects:
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• | Revenues in the range of $210 million to $225 million; |
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• | Adjusted earnings per share, excluding restructuring and special charges, in the range of $1.02 to $1.12; and, |
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• | Restructuring and special related charges of approximately $3.0 million to $3.3 million. |
Selected Consolidated Results
Segment Results
1. Consolidated and Segment Results exclude special and restructuring charges/(recoveries), $0.5 million and ($0.2) million related to restructuring actions during Q3 2014 and Q3 2013, respectively, as well as $2.9 million in inventory charges related to the exit of certain landing gear product lines recorded during Q3 2014. Refer to reconciliation to commonly used US GAAP terms.
2. Consolidated and Aerospace & Defense Segment Backlog reflects a Q2 2014 reduction of $28.6 million associated with the exit of certain landing gear product lines.
Conference Call Information
CIRCOR International will hold a conference call to review its financial results today, October 31, 2014, at 10:00 a.m. ET. To listen to the conference call and view the accompanying presentation slides, visit “Webcasts & Presentations” in the “Investors” section of the CIRCOR website. The live call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. The webcast will be archived for one year on the Company’s website.
Use of Non-GAAP Financial Measures
Adjusted net income, adjusted earnings per diluted share, adjusted operating income, adjusted operating margin, and free cash flow are non-GAAP financial measures and are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States. CIRCOR believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, those relating to CIRCOR’s future performance, including fourth-quarter revenue and earnings guidance and estimated total annualized pre-tax savings from restructuring actions. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K 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, Inc. designs, manufactures and markets highly engineered products and sub-systems for markets including oil & gas, power generation and aerospace & defense. With more than 7,000 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands that fulfill its customers’ unique application needs. The Company’s strategy is to grow organically and through complementary acquisitions; simplify CIRCOR’s operations; achieve world class operational excellence; and attract and retain top industry talent. For more information, visit the Company’s investor relations website at http://investors.circor.com.
Contact:
Rajeev Bhalla
Executive Vice President & Chief Financial Officer
CIRCOR International
(781) 270-1200
CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENT OF INCOME (in thousands, except share data) UNAUDITED |
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 28, 2014 | | September 29, 2013 | | September 28, 2014 | | September 29, 2013 |
Net revenues | $ | 203,818 |
| | $ | 214,731 |
| | $ | 622,888 |
| | $ | 643,773 |
|
Cost of revenues | 141,601 |
| | 144,593 |
| | 436,333 |
| | 443,679 |
|
GROSS PROFIT | 62,217 |
| | 70,138 |
| | 186,555 |
| | 200,094 |
|
Selling, general and administrative expenses | 41,873 |
| | 46,392 |
| | 129,370 |
| | 139,561 |
|
Special charges (recoveries), net | 478 |
| | (190 | ) | | 578 |
| | 3,441 |
|
OPERATING INCOME | 19,866 |
| | 23,936 |
| | 56,607 |
| | 57,092 |
|
Other (income) expense: | | | | | | | |
Interest expense, net | 436 |
| | 745 |
| | 2,245 |
| | 2,370 |
|
Other expense (income), net | 419 |
| | 568 |
| | (434 | ) | | 1,807 |
|
TOTAL OTHER EXPENSE, NET | 855 |
| | 1,313 |
| | 1,811 |
| | 4,177 |
|
INCOME BEFORE INCOME TAXES | 19,012 |
| | 22,623 |
| | 54,796 |
| | 52,915 |
|
Provision for income taxes | 4,337 |
| | 4,903 |
| | 13,565 |
| | 14,619 |
|
NET INCOME | $ | 14,675 |
| | $ | 17,720 |
| | $ | 41,231 |
| | $ | 38,296 |
|
Earnings per common share: | | | | | | | |
Basic | $ | 0.83 |
| | $ | 1.01 |
| | $ | 2.34 |
| | $ | 2.18 |
|
Diluted | $ | 0.83 |
| | $ | 1.00 |
| | $ | 2.32 |
| | $ | 2.18 |
|
Weighted average number of common shares outstanding: | | | | | | | |
Basic | 17,675 |
| | 17,582 |
| | 17,654 |
| | 17,553 |
|
Diluted | 17,779 |
| | 17,667 |
| | 17,763 |
| | 17,602 |
|
Dividends paid per common share | $ | 0.0375 |
| | $ | 0.0375 |
| | $ | 0.1125 |
| | $ | 0.1125 |
|
CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (UNAUDITED) |
| | | | | | | |
| Nine Months Ended |
| September 28, 2014 | | September 29, 2013 |
OPERATING ACTIVITIES | | | |
Net income | $ | 41,231 |
|
| $ | 38,296 |
|
Adjustments to reconcile net income to net cash provided by operating activities: | | | |
Depreciation | 12,163 |
| | 11,943 |
|
Amortization | 2,367 |
| | 2,273 |
|
Compensation expense of share-based plans | 5,956 |
| | 3,343 |
|
Tax effect of share-based plan compensation | (744 | ) | | (536 | ) |
Gain on property, plant and equipment | (133 | ) | | (70 | ) |
Return of acquisition proceeds | — |
| | (3,400 | ) |
Changes in operating assets and liabilities: | | | |
Trade accounts receivable, net | (30,942 | ) | | 493 |
|
Inventories, net | (159 | ) | | (33 | ) |
Prepaid expenses and other assets | (121 | ) | | 193 |
|
Accounts payable, accrued expenses and other liabilities | 14,953 |
| | 1,259 |
|
Net cash provided by operating activities | 44,571 |
| | 53,761 |
|
INVESTING ACTIVITIES | | | |
Additions to property, plant and equipment | (8,900 | ) | | (13,579 | ) |
Proceeds from the sale of property, plant and equipment | 761 |
| | 348 |
|
Proceeds from sale of affiliates | 177 |
| | — |
|
Business acquisitions, return of purchase price | — |
| | 3,400 |
|
Net cash used in investing activities | (7,962 | ) | | (9,831 | ) |
FINANCING ACTIVITIES | | | |
Proceeds from long-term debt | 109,104 |
| | 104,626 |
|
Payments of long-term debt | (125,140 | ) | | (124,351 | ) |
Debt issuance costs | (920 | ) | | — |
|
Dividends paid | (2,011 | ) | | (2,011 | ) |
Proceeds from the exercise of stock options | 420 |
| | 1,843 |
|
Tax effect of share-based compensation | 744 |
| | 536 |
|
Net cash used in financing activities | (17,803 | ) | | (19,357 | ) |
Effect of exchange rate changes on cash and cash equivalents | (6,404 | ) | | (27 | ) |
INCREASE IN CASH AND CASH EQUIVALENTS | 12,400 |
| | 24,547 |
|
Cash and cash equivalents at beginning of year | 102,180 |
| | 61,738 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 114,580 |
| | $ | 86,285 |
|
Cash paid during the year for: | | | |
Income taxes | $ | 12,760 |
| | $ | 5,463 |
|
Interest | $ | 1,923 |
| | $ | 1,910 |
|
CIRCOR INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands)
|
| | | | | | | |
| September 28, 2014 | | December 31, 2013 |
ASSETS | (unaudited) | | |
CURRENT ASSETS: | | | |
Cash and cash equivalents | $ | 114,580 |
| | $ | 102,180 |
|
Short-term investments | 91 |
| | 95 |
|
Trade accounts receivable, less allowance for doubtful accounts of $2,852 and $2,449, respectively | 170,777 |
| | 144,742 |
|
Inventories, net | 195,522 |
| | 199,404 |
|
Prepaid expenses and other current assets | 19,510 |
| | 19,815 |
|
Deferred income tax asset | 19,992 |
| | 17,686 |
|
Total Current Assets | 520,472 |
| | 483,922 |
|
PROPERTY, PLANT AND EQUIPMENT, NET | 101,786 |
| | 107,724 |
|
OTHER ASSETS: | | | |
Goodwill | 75,245 |
| | 75,876 |
|
Intangibles, net | 32,622 |
| | 35,656 |
|
Deferred income tax asset | 15,271 |
| | 18,579 |
|
Other assets | 5,098 |
| | 4,893 |
|
TOTAL ASSETS | $ | 750,494 |
| | $ | 726,650 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
CURRENT LIABILITIES: | | | |
Accounts payable | $ | 86,780 |
| | $ | 70,589 |
|
Accrued expenses and other current liabilities | 59,677 |
| | 57,507 |
|
Accrued compensation and benefits | 26,860 |
| | 31,289 |
|
Income taxes payable | 4,629 |
| | 3,965 |
|
Notes payable and current portion of long-term debt | 7,439 |
| | 7,203 |
|
Total Current Liabilities | 185,385 |
| | 170,553 |
|
LONG-TERM DEBT, NET OF CURRENT PORTION | 26,403 |
| | 42,435 |
|
DEFERRED INCOME TAXES | 8,721 |
| | 9,666 |
|
OTHER NON-CURRENT LIABILITIES | 21,950 |
| | 27,109 |
|
SHAREHOLDERS’ EQUITY: | | | |
Common stock | 170 |
| | 176 |
|
Additional paid-in capital | 276,374 |
| | 269,884 |
|
Retained earnings | 241,871 |
| | 202,930 |
|
Accumulated other comprehensive (loss) gain, net of taxes | (10,380 | ) | | 3,897 |
|
Total Shareholders’ Equity | 508,035 |
| | 476,887 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 750,494 |
| | $ | 726,650 |
|
CIRCOR INTERNATIONAL, INC. SUMMARY OF ORDERS AND BACKLOG (in millions) UNAUDITED |
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 28, 2014 | | September 29, 2013 | | September 28, 2014 | | September 29, 2013 |
ORDERS (1) | | | | | | | |
Energy | $ | 197.7 |
| | $ | 167.0 |
| | $ | 517.6 |
| | $ | 504.3 |
|
Aerospace & Defense | 44.6 |
| | 56.3 |
| | 128.3 |
| | 145.9 |
|
Total orders | $ | 242.3 |
| | $ | 223.3 |
| | $ | 645.9 |
| | $ | 650.2 |
|
| | | | | | | |
BACKLOG (2) | September 28, 2014 | | September 29, 2013 | | | | |
Energy | $ | 304.5 |
| | $ | 265.0 |
| | | | |
Aerospace & Defense (3) | 127.2 |
| | 181.9 |
| | | | |
Total backlog | $ | 431.8 |
| | $ | 446.9 |
| | | | |
| | | | | | | |
Note 1: Orders do not include the foreign exchange impact due to the re-measurement of customer order backlog amounts denominated in foreign currencies. |
Note 2: Backlog includes unshipped customer orders. |
Note 3: Aerospace & Defense backlog reflects a reduction of $28.6 million associated with the exit of certain landing gear product lines recorded in the second quarter of 2014. |
CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except earnings per share) UNAUDITED |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2013 | 2014 |
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
NET REVENUES | | | | | | | | | |
Energy | $ | 157,104 |
| $ | 173,557 |
| $ | 167,660 |
| $ | 162,649 |
| $ | 660,970 |
| $ | 162,587 |
| $ | 160,580 |
| $ | 157,658 |
| $ | 480,825 |
|
Aerospace & Defense | 48,294 |
| 50,087 |
| 47,071 |
| 51,386 |
| 196,838 |
| 48,599 |
| 47,304 |
| 46,160 |
| 142,063 |
|
Total | $ | 205,398 |
| $ | 223,644 |
| $ | 214,731 |
| $ | 214,035 |
| $ | 857,808 |
| $ | 211,186 |
| $ | 207,884 |
| $ | 203,818 |
| $ | 622,888 |
|
ADJUSTED OPERATING MARGIN | | | | | | | | | |
Energy | 10.8 | % | 13.3 | % | 15.2 | % | 17.1 | % | 14.1 | % | 13.8 | % | 14.6 | % | 16.9 | % | 15.1 | % |
Aerospace & Defense | 5.9 | % | 11.4 | % | 12.1 | % | 8.4 | % | 9.5 | % | 9.1 | % | 7.1 | % | 5.0 | % | 7.1 | % |
Segment operating margin | 9.6 | % | 12.9 | % | 14.5 | % | 15.0 | % | 13.0 | % | 12.7 | % | 12.9 | % | 14.2 | % | 13.3 | % |
Corporate expenses | (2.6 | )% | (2.9 | )% | (3.4 | )% | (3.5 | )% | (3.1 | )% | (3.4 | )% | (2.2 | )% | (2.8 | )% | (2.8 | )% |
Adjusted operating margin | 7.1 | % | 10.0 | % | 11.1 | % | 11.6 | % | 9.9 | % | 9.4 | % | 10.7 | % | 11.4 | % | 10.5 | % |
Restructuring inventory charges | 0.1 | % | (0.1 | )% | — | % | 0.3 | % | 0.1 | % | — | % | 2.5 | % | 1.4 | % | 1.3 | % |
Impairment charges | — | % | — | % | — | % | 3.2 | % | 0.8 | % | — | % | — | % | — | % | — | % |
Special (recoveries) | — | % | — | % | (1.5 | )% | — | % | (0.4 | )% | (1.1 | )% | — | % | — | % | (0.4 | )% |
Special charges | 0.7 | % | 1.0 | % | 1.4 | % | 2.4 | % | 1.4 | % | 0.5 | % | 0.6 | % | 0.2 | % | 0.5 | % |
Total GAAP operating margin | 6.3 | % | 9.1 | % | 11.1 | % | 5.6 | % | 8.1 | % | 9.9 | % | 7.6 | % | 9.7 | % | 9.1 | % |
| | | | | | | | | |
| | | | | | | | | |
CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except earnings per share) UNAUDITED |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| 2013 | 2014 |
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
ADJUSTED OPERATING INCOME | | | | | | | | | |
Energy | $ | 16,940 |
| $ | 23,114 |
| $ | 25,441 |
| $ | 27,809 |
| $ | 93,304 |
| $ | 22,462 |
| $ | 23,502 |
| $ | 26,577 |
| $ | 72,541 |
|
Aerospace & Defense | 2,864 |
| 5,724 |
| 5,705 |
| 4,342 |
| 18,635 |
| 4,426 |
| 3,362 |
| 2,295 |
| 10,083 |
|
Segment operating income | 19,804 |
| 28,838 |
| 31,146 |
| 32,151 |
| 111,939 |
| 26,888 |
| 26,864 |
| 28,872 |
| 82,624 |
|
Corporate expenses | (5,277 | ) | (6,570 | ) | (7,400 | ) | (7,400 | ) | (26,646 | ) | (7,137 | ) | (4,634 | ) | (5,678 | ) | (17,449 | ) |
Adjusted operating income | 14,528 |
| 22,268 |
| 23,746 |
| 24,751 |
| 85,293 |
| 19,750 |
| 22,231 |
| 23,194 |
| 65,175 |
|
Restructuring inventory charges | 250 |
| (242 | ) | — |
| 638 |
| 646 |
| — |
| 5,139 |
| 2,850 |
| 7,989 |
|
Impairment charges | — |
| — |
| — |
| 6,872 |
| 6,872 |
| — |
| — |
| — |
| — |
|
Special (recoveries) | — |
| — |
| (3,151 | ) | — |
| (3,151 | ) | (2,243 | ) | — |
| — |
| (2,243 | ) |
Special charges | 1,378 |
| 2,254 |
| 2,961 |
| 5,160 |
| 11,752 |
| 1,086 |
| 1,257 |
| 478 |
| 2,821 |
|
Total GAAP operating income | 12,900 |
| 20,256 |
| 23,936 |
| 12,081 |
| 69,174 |
| 20,907 |
| 15,834 |
| 19,866 |
| 56,607 |
|
INTEREST EXPENSE, NET | (787 | ) | (838 | ) | (745 | ) | (792 | ) | (3,162 | ) | (918 | ) | (891 | ) | (436 | ) | (2,245 | ) |
OTHER (EXPENSE) INCOME, NET | (612 | ) | (626 | ) | (568 | ) | (167 | ) | (1,974 | ) | 468 |
| 384 |
| (419 | ) | 434 |
|
PRETAX INCOME | 11,501 |
| 18,792 |
| 22,623 |
| 11,122 |
| 64,038 |
| 20,457 |
| 15,328 |
| 19,012 |
| 54,796 |
|
PROVISION FOR INCOME TAXES | (3,592 | ) | (6,124 | ) | (4,903 | ) | (2,297 | ) | (16,916 | ) | (5,825 | ) | (3,402 | ) | (4,337 | ) | (13,565 | ) |
EFFECTIVE TAX RATE | 31.2 | % | 32.6 | % | 21.7 | % | 20.7 | % | 26.4 | % | 28.5 | % | 22.2 | % | 22.8 | % | 24.8 | % |
NET INCOME | $ | 7,908 |
| $ | 12,668 |
| $ | 17,720 |
| $ | 8,825 |
| $ | 47,121 |
| $ | 14,632 |
| $ | 11,926 |
| $ | 14,675 |
| $ | 41,231 |
|
Weighted Average Common Shares Outstanding (Diluted) | 17,529 |
| 17,607 |
| 17,667 |
| 17,710 |
| 17,629 |
| 17,741 |
| 17,767 |
| 17,779 |
| 17,763 |
|
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.45 |
| $ | 0.72 |
| $ | 1.00 |
| $ | 0.50 |
| $ | 2.67 |
| $ | 0.82 |
| $ | 0.67 |
| $ | 0.83 |
| $ | 2.32 |
|
ADJUSTED EBITDA | $ | 18,682 |
| $ | 26,419 |
| $ | 27,850 |
| $ | 29,441 |
| $ | 102,392 |
| $ | 25,073 |
| $ | 27,536 |
| $ | 27,530 |
| $ | 80,137 |
|
ADJUSTED EBITDA AS A % OF SALES | 9.1 | % | 11.8 | % | 13.0 | % | 13.8 | % | 11.9 | % | 11.9 | % | 13.2 | % | 13.5 | % | 12.9 | % |
CAPITAL EXPENDITURES | $ | 4,707 |
| $ | 4,100 |
| $ | 4,772 |
| $ | 3,749 |
| $ | 17,328 |
| $ | 2,670 |
| $ | 2,933 |
| $ | 3,297 |
| $ | 8,900 |
|
| | | | | | | | | |
| | | | |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share) UNAUDITED |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2013 | 2014 |
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
FREE CASH FLOW AS % OF NET INCOME | 14 | % | 75 | % | 167 | % | 167 | % | 116 | % | 98 | % | 62 | % | 95 | % | 87 | % |
FREE CASH FLOW | $ | 1,100 |
| $ | 9,525 |
| $ | 29,557 |
| $ | 14,696 |
| $ | 54,878 |
| $ | 14,387 |
| $ | 7,365 |
| $ | 13,919 |
| $ | 35,671 |
|
ADD: | | | | | | | | | |
Capital Expenditures | 4,707 |
| 4,100 |
| 4,772 |
| 3,749 |
| 17,328 |
| 2,670 |
| 2,933 |
| 3,297 |
| 8,900 |
|
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 5,807 |
| $ | 13,625 |
| $ | 34,329 |
| $ | 18,445 |
| $ | 72,206 |
| $ | 17,057 |
| $ | 10,298 |
| $ | 17,216 |
| $ | 44,571 |
|
NET DEBT (CASH) | $ | 8,814 |
| $ | (1,376 | ) | $ | (36,466 | ) | $ | (52,637 | ) | $ | (52,637 | ) | $ | (66,056 | ) | $ | (72,982 | ) | $ | (80,829 | ) | $ | (80,829 | ) |
ADD: |
|
|
|
|
|
|
|
|
|
| | | | |
Cash & Cash Equivalents | 57,633 |
| 60,831 |
| 86,285 |
| 102,180 |
| 102,180 |
| 122,097 |
| 116,326 |
| 114,580 |
| 114,580 |
|
Investments | 99 |
| 96 |
| 98 |
| 95 |
| 95 |
| 92 |
| 95 |
| 91 |
| 91 |
|
TOTAL DEBT | $ | 66,546 |
| $ | 59,551 |
| $ | 49,917 |
| $ | 49,638 |
| $ | 49,638 |
| $ | 56,133 |
| $ | 43,439 |
| $ | 33,842 |
| $ | 33,842 |
|
DEBT AS % OF EQUITY | 16 | % | 14 | % | 11 | % | 10 | % | 10 | % | 11 | % | 9 | % | 7 | % | 7 | % |
TOTAL DEBT | 66,546 |
| 59,551 |
| 49,917 |
| 49,638 |
| 49,638 |
| 56,133 |
| 43,439 |
| 33,842 |
| 33,842 |
|
TOTAL SHAREHOLDERS' EQUITY | 418,819 |
| 432,151 |
| 459,058 |
| 476,887 |
| 476,887 |
| 492,601 |
| 507,363 |
| 508,035 |
| 508,035 |
|
| | | | | | | | | |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share) UNAUDITED |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| 2013 | 2014 |
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
ADJUSTED OPERATING INCOME | $ | 14,528 |
| $ | 22,268 |
| $ | 23,746 |
| $ | 24,751 |
| $ | 85,293 |
| $ | 19,750 |
| $ | 22,230 |
| $ | 23,194 |
| $ | 65,175 |
|
LESS: | | | | | | | | | |
Inventory restructuring charges | 250 |
| (242 | ) | — |
| 638 |
| 646 |
| — |
| 5,139 |
| 2,850 |
| 7,989 |
|
Impairment charges | — |
| — |
| — |
| 6,872 |
| 6,872 |
| — |
| — |
| — |
| — |
|
Special (recoveries) | — |
| — |
| (3,151 | ) | — |
| (3,151 | ) | (2,243 | ) | — |
| — |
| (2,243 | ) |
Special charges | 1,378 |
| 2,254 |
| 2,961 |
| 5,160 |
| 11,753 |
| 1,086 |
| 1,257 |
| 478 |
| 2,821 |
|
OPERATING INCOME | $ | 12,900 |
| $ | 20,256 |
| $ | 23,936 |
| $ | 12,081 |
| $ | 69,173 |
| $ | 20,907 |
| $ | 15,834 |
| $ | 19,866 |
| $ | 56,607 |
|
ADJUSTED NET INCOME | $ | 9,043 |
| $ | 14,044 |
| $ | 16,439 |
| $ | 16,773 |
| $ | 56,299 |
| $ | 13,916 |
| $ | 16,090 |
| $ | 16,827 |
| $ | 46,831 |
|
LESS: | | | | | | | | | |
Inventory restructuring charges, net of tax | 174 |
| (165 | ) | — |
| 396 |
| 405 |
| — |
| 3,316 |
| 1,857 |
| 5,173 |
|
Impairment charges, net of tax | — |
| — |
| — |
| 4,261 |
| 4,261 |
| — |
| — |
| — |
| — |
|
Special (recoveries), net of tax | — |
| — |
| (3,151 | ) | — |
| (3,151 | ) | (1,391 | ) | — |
| — |
| (1,391 | ) |
Special charges, net of tax | 961 |
| 1,541 |
| 1,870 |
| 3,291 |
| 7,663 |
| 675 |
| 848 |
| 295 |
| 1,818 |
|
NET INCOME | $ | 7,908 |
| $ | 12,668 |
| $ | 17,720 |
| $ | 8,825 |
| $ | 47,121 |
| $ | 14,632 |
| $ | 11,926 |
| $ | 14,675 |
| $ | 41,231 |
|
ADJUSTED EARNINGS PER SHARE (Diluted) | $ | 0.52 |
| $ | 0.81 |
| $ | 0.93 |
| $ | 0.95 |
| $ | 3.21 |
| $ | 0.78 |
| $ | 0.91 |
| $ | 0.95 |
| $ | 2.64 |
|
LESS: | | | | | | | | | |
Inventory restructuring charges, net of tax | 0.01 |
| (0.01 | ) | — |
| 0.02 |
| 0.02 |
| — |
| 0.19 |
| 0.10 |
| 0.29 |
|
Impairment charges, net of tax | — |
| — |
| — |
| 0.24 |
| 0.24 |
| — |
| — |
| — |
| — |
|
Special (recoveries), net of tax | — |
| — |
| (0.18 | ) | — |
| (0.18 | ) | (0.08 | ) | — |
| — |
| (0.08 | ) |
Special charges, net of tax | 0.06 |
| 0.10 |
| 0.11 |
| 0.19 |
| 0.46 |
| 0.04 |
| 0.05 |
| 0.02 |
| 0.11 |
|
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.45 |
| $ | 0.72 |
| $ | 1.00 |
| $ | 0.50 |
| $ | 2.67 |
| $ | 0.82 |
| $ | 0.67 |
| $ | 0.83 |
| $ | 2.32 |
|
| | | | | | | | | |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share) UNAUDITED |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| 2013 | 2014 |
| 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | 2ND QTR | 3RD QTR | TOTAL |
EBITDA | $ | 17,054 |
| $ | 24,407 |
| $ | 23,368 |
| $ | 11,914 |
| $ | 86,272 |
| $ | 26,230 |
| $ | 21,140 |
| $ | 24,202 |
| $ | 71,570 |
|
LESS: | | | | | | | | | |
Interest expense, net | (787 | ) | (838 | ) | (745 | ) | (792 | ) | (3,162 | ) | (918 | ) | (891 | ) | (436 | ) | (2,245 | ) |
Depreciation | (4,009 | ) | (4,026 | ) | (3,908 | ) | (4,091 | ) | (16,034 | ) | (4,069 | ) | (4,116 | ) | (3,978 | ) | (12,163 | ) |
Amortization | (758 | ) | (751 | ) | (764 | ) | (766 | ) | (3,039 | ) | (786 | ) | (805 | ) | (776 | ) | (2,367 | ) |
Provision for income taxes | (3,592 | ) | (6,124 | ) | (4,903 | ) | (2,297 | ) | (16,916 | ) | (5,825 | ) | (3,402 | ) | (4,337 | ) | (13,564 | ) |
NET INCOME | $ | 7,908 |
| $ | 12,668 |
| $ | 17,720 |
| $ | 8,825 |
| $ | 47,121 |
| $ | 14,632 |
| $ | 11,926 |
| $ | 14,675 |
| $ | 41,231 |
|
ADJUSTED EBITDA | $ | 18,682 |
| $ | 26,419 |
| $ | 27,850 |
| $ | 29,441 |
| $ | 102,392 |
| $ | 25,073 |
| $ | 27,536 |
| $ | 27,530 |
| $ | 80,137 |
|
Inventory restructuring charges | (250 | ) | 242 |
| — |
| (638 | ) | (646 | ) | — |
| (5,139 | ) | (2,850 | ) | (7,989 | ) |
Impairment charges | — |
| — |
| — |
| (6,872 | ) | (6,872 | ) | — |
| — |
| — |
| — |
|
Special (recoveries) | — |
| — |
| 3,151 |
| — |
| 3,151 |
| 2,243 |
| — |
| — |
| 2,243 |
|
Special charges | (1,378 | ) | (2,254 | ) | (2,961 | ) | (5,160 | ) | (11,753 | ) | (1,086 | ) | (1,257 | ) | (478 | ) | (2,821 | ) |
Interest expense, net | (787 | ) | (838 | ) | (745 | ) | (792 | ) | (3,162 | ) | (918 | ) | (891 | ) | (436 | ) | (2,245 | ) |
Depreciation | (4,009 | ) | (4,026 | ) | (3,908 | ) | (4,091 | ) | (16,034 | ) | (4,069 | ) | (4,116 | ) | (3,978 | ) | (12,163 | ) |
Amortization | (758 | ) | (751 | ) | (764 | ) | (766 | ) | (3,039 | ) | (786 | ) | (805 | ) | (776 | ) | (2,367 | ) |
Provision for income taxes | (3,592 | ) | (6,124 | ) | (4,903 | ) | (2,297 | ) | (16,916 | ) | (5,825 | ) | (3,402 | ) | (4,337 | ) | (13,564 | ) |
NET INCOME | $ | 7,908 |
| $ | 12,668 |
| $ | 17,720 |
| $ | 8,825 |
| $ | 47,121 |
| $ | 14,632 |
| $ | 11,926 |
| $ | 14,675 |
| $ | 41,231 |
|
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS UNAUDITED |
| | | | | | | | |
| | 4th Quarter 2014 |
| | Low | | High |
REVENUE (in millions) | | $ | 210 |
| | $ | 225 |
|
| | | | |
EXPECTED ADJUSTED EARNINGS PER SHARE (DILUTED) | | $ | 1.02 |
| | $ | 1.12 |
|
LESS: | | | | |
Impairment charges, net of tax | } | $ | 0.12 |
| | $ | 0.11 |
|
Restructuring related charges, net of tax | |
Special charges, net of tax |
EXPECTED EARNINGS PER COMMON SHARE (Diluted) | | $ | 0.90 |
| | $ | 1.01 |
|
| | | | |
Note: Assumes 26% to 27% tax rate and exchange rates at present values. | | | | |
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