CIRCOR Reports Fourth-Quarter and Year-End 2013 Financial Results

Business Wire

BURLINGTON, Mass.--(BUSINESS WIRE)--

CIRCOR International, Inc. (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 fourth quarter and fiscal year ended December 31, 2013.

Fourth-Quarter 2013 Highlights

  • Orders up 14%
  • Organic revenue growth of 6%
  • Adjusted operating margin increased 380 basis points to 11.6%
  • Adjusted EPS grew 38% to $0.95

Full-Year 2013 Highlights

  • Adjusted operating margin increased 210 basis points to 9.9%
  • Adjusted EPS grew 24% to $3.21
  • Free cash flow was $55 million or 116% of net income
  • 2013 restructuring actions completed or on schedule

“CIRCOR ended 2013 with strong fourth-quarter bookings, margin expansion and free cash flow,” said Scott Buckhout, CIRCOR President and Chief Executive Officer. “We delivered another quarter of double-digit adjusted operating margin at 11.6%, which was up 380 basis points from the fourth quarter of 2012 due primarily to our margin improvement actions. In addition, we delivered strong free cash flow at 116% of net income for the full year.”

“Revenue for the quarter came in higher by 6% organically but lower than anticipated as a few large Energy shipments were rescheduled into the first half of 2014,” said Buckhout. “Energy segment bookings improved in Q4 as demand increased and our win rate improved for large international projects.”

“Our organizational change from three operating segments to two is now complete,” said Buckhout. “We are on track to deliver our planned $5 million reduction in annual costs. As we enter 2014, CIRCOR has a simpler organizational structure and is better positioned to grow. We remain focused on core revenue growth, margin expansion, and strong free cash flow.”

           

Selected Consolidated Results

(In millions, except percents and bps)   Q4 2013 Q4 2012 Change FY 2013 FY 2012 Change
 
Revenue $ 214.0 $ 201.6 6% $ 857.8 $ 845.6 1%
Adjusted Operating Income $

24.8

$ 15.6 59% $ 85.3 $ 66.3 29%
Adjusted Operating Margin 11.6% 7.8% 380 bps 9.9% 7.8% 210 bps
Adjusted Earnings Per Share (Diluted) $ 0.95 $ 0.69 38% $ 3.21 $ 2.59 24%
Orders $ 231.1 $ 202.3 14% $ 881.3 $ 903.7 (2%)
Backlog $ 462.6 $ 447.0 3%
Free Cash Flow $ 54.9 $ 42.4 30%

Note: These amounts exclude special and impairment charges. Refer to reconciliation to commonly used US GAAP terms.

           

Segment Results

(In millions, except percents and bps)   Q4 2013 Q4 2012 Change FY 2013 FY 2012 Change
 
Energy
Revenue $ 162.6 $ 156.2 4% $ 661.0 $ 659.4 -
Adjusted Operating Margin 17.1% 11.9% 520 bps 14.1% 11.1% 300 bps
Orders $ 187.4 $ 156.6 20% $ 691.7 $ 714.2 (3%)
Backlog $ 288.7 $ 266.0 9%
 
Aerospace & Defense
Revenue $ 51.4 $ 45.4 13% $ 196.8 $ 186.2 6%
Adjusted Operating Margin 8.4% 5.1% 330 bps 9.5% 9.0% 50 bps
Orders $ 43.7 $ 45.7 (4%) $ 189.6 $ 189.6 0%
Backlog $ 173.9 $ 181.1 (4%)

Note: These amounts exclude special and impairment charges. Refer to reconciliation to commonly used US GAAP terms.

On October 31, 2013 the Company announced a change from three reportable segments to two reportable segments beginning in the fourth quarter of 2013. On January 23, 2014 the Company released supplemental information to previously issued summary financial information by reportable segment for each of the prior quarterly reporting periods from the first quarter of 2011 through the third quarter of 2013. This information was set forth in a Form 8-K filed with the Securities and Exchange Commission. The segment realignment has no effect on the Company’s previously reported net income, financial condition or cash flows.

First-Quarter 2014 Guidance

For the first quarter of 2014, the Company expects:

  • Revenues in the range of $200 million to $210 million;
  • Adjusted earnings per share, excluding special charges, in the range of $0.68 to $0.73; and
  • Restructuring related trailing costs of approximately $1.5 million to $1.7 million and a special gain of $2.2 million for a legal settlement.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, February 27, 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” portion of the CIRCOR website. The 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 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 first-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 web site at http://investors.circor.com.

 

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share data)

UNAUDITED

 
  Three Months Ended   Twelve Months Ended

December 31,
2013

 

December 31,
2012

December 31,
2013

 

December 31,
2012

Net revenues $ 214,035 $ 201,606 $ 857,808 $ 845,552
Cost of revenues 146,528   141,186   590,207   604,009
GROSS PROFIT 67,507 60,420 267,601 241,543
Selling, general and administrative expenses 43,394 44,820 182,954 179,382
Impairment charges 6,872 6,872 10,348
Special charges, net 5,160   3,905   8,602   5,282
OPERATING INCOME 12,081   11,695   69,173   46,531
Other (income) expense:
Interest expense, net 792 1,038 3,161 4,259
Other, net 167   (373 ) 1,975   513
TOTAL OTHER EXPENSE 959   665   5,136   4,772
INCOME BEFORE INCOME TAXES 11,122 11,030 64,037 41,759
Provision for income taxes 2,297   1,821   16,916   10,960
NET INCOME $ 8,825   $ 9,209   $ 47,121   $ 30,799
Earnings per common share:
Basic $ 0.50 $ 0.53 $ 2.68 $ 1.77
Diluted $ 0.50 $ 0.53 $ 2.67 $ 1.76
Weighted average number of common shares outstanding:
Basic 17,594 17,450 17,564 17,405
Diluted 17,710 17,499 17,629 17,452
Dividends paid per common share $ 0.0375 $ 0.0375 $ 0.1500 $ 0.1500
 
 

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)

 
  Twelve Months Ended

December 31,
2013

 

December 31,
2012

OPERATING ACTIVITIES  
Net income $ 47,121 $ 30,799
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 16,034 15,732
Amortization 3,039 3,596
Intangible impairment charges 6,872 10,348
Payment provision for Leslie bankruptcy settlement (1,000 )
Compensation expense of stock-based plans 5,056 4,374
Tax effect of share-based compensation (732 ) 642
Deferred income taxes 5,778 (832 )
(Gain) loss on disposal of property, plant and equipment (322 ) 1,135
Gain on return of acquisition purchase price (3,400 )
Changes in operating assets and liabilities:
Trade accounts receivable, net 8,203 7,063
Inventories, net (311 ) 6,592
Prepaid expenses and other assets 160 (2,422 )
Accounts payable, accrued expenses and other liabilities (15,292 ) (15,504 )
Net cash provided by operating activities 72,206   60,523  
INVESTING ACTIVITIES
Additions to property, plant and equipment (17,328 ) (18,170 )
Proceeds from the sale of property, plant and equipment 664 541
Business acquisitions, return of purchase price 3,400    
Net cash used in investing activities (13,264 ) (17,629 )
FINANCING ACTIVITIES
Proceeds from long-term debt 146,578 186,409
Payments of long-term debt (166,239 ) (220,918 )
Dividends paid (2,700 ) (2,663 )
Proceeds from the exercise of stock options 2,394 406
Tax effect of share-based compensation 732   (642 )
Net cash used in financing activities (19,235 ) (37,408 )
Effect of exchange rate changes on cash and cash equivalents 735   1,397  
INCREASE IN CASH AND CASH EQUIVALENTS 40,445 6,883
Cash and cash equivalents at beginning of year 61,738   54,855  
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 102,183   $ 61,738  
Cash paid during the year for:
Income taxes $ 8,143 $ 16,699
Interest $ 3,254 $ 3,140
 
 

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

UNAUDITED

 
 

December 31,
2013

  December 31,
2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 102,180 $ 61,738
Short-term investments 95 101
Trade accounts receivable, less allowance for doubtful accounts of $2,449 and $1,706, respectively 144,742 150,825
Inventories, net 199,404 198,005
Prepaid expenses and other current assets 19,815 17,052
Deferred income tax asset 17,686   15,505  
Total Current Assets 483,922   443,226  
PROPERTY, PLANT AND EQUIPMENT, NET 107,724 105,903
OTHER ASSETS:
Goodwill 75,876 77,428
Intangibles, net 35,656 45,157
Deferred income tax asset 18,579 30,064
Other assets 4,893   8,203  
TOTAL ASSETS $ 726,650   $ 709,981  
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 70,589 $ 80,361
Accrued expenses and other current liabilities 57,507 67,235
Accrued compensation and benefits 31,289 26,540
Income taxes payable 3,965 393
Notes payable and current portion of long-term debt 7,203   7,755  
Total Current Liabilities 170,553   182,284  
LONG-TERM DEBT, NET OF CURRENT PORTION 42,435 62,729
DEFERRED INCOME TAXES 9,666 10,744
OTHER NON-CURRENT LIABILITIES 27,109 35,977
CONTINGENCIES AND COMMITMENTS
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; 17,610,526 and 17,445,687 shares issued and outstanding at December 31, 2013 and 2012, respectively 176 174
Additional paid-in capital 269,885 262,744
Retained earnings 202,930 158,509
Accumulated other comprehensive gain (loss), net of taxes 3,896   (3,180 )
Total Shareholders’ Equity 476,887   418,247  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 726,650   $ 709,981  
 
 

CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in millions)

UNAUDITED

 
  Three Months Ended   Twelve Months Ended
December 31,
2013
  December 31,
2012
December 31,
2013
  December 31,
2012
ORDERS (1)
Energy $ 187.4 $ 156.6 $ 691.7 $ 714.2
Aerospace & Defense 43.7   45.7   189.6   189.6
Total orders $ 231.1   $ 202.3   $ 881.3   $ 903.8
 
BACKLOG (2) December 31,
2013
December 31,
2012
Energy $ 288.7 $ 266.0
Aerospace & Defense 173.9   181.1  
Total backlog $ 462.6   $ 447.1  
 
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 all unshipped customer orders.
 
 

CIRCOR INTERNATIONAL, INC.

SUMMARY REPORT BY SEGMENT

(in thousands, except earnings per share)

UNAUDITED

 
                                       
2012   2013
1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL   1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL
NET REVENUES                
Energy $ 164,885 $ 171,386 $ 166,918 $ 156,193 $ 659,382 $ 157,104 $ 173,557 $ 167,660 $ 162,649 $ 660,970
Aerospace & Defense 49,395     48,476     42,886     45,413     186,170     48,294     50,087     47,071     51,386     196,838  
Total $ 214,280 $ 219,862 $ 209,804 $ 201,606 $ 845,552 $ 205,398 $ 223,644 $ 214,731 $ 214,035 $ 857,808
ADJUSTED OPERATING MARGIN
Energy 8.7 % 10.8 % 12.9 % 11.9 % 11.1 % 10.8 % 13.3 % 15.2 % 17.1 % 14.1 %
Aerospace & Defense 11.5 %   11.7 %   7.1 %   5.1 %   9.0 %   5.9 %   11.4 %   12.1 %   8.4 %   9.5 %
Segment operating margin 9.3 % 11.0 % 11.7 % 10.4 % 10.6 % 9.6 % 12.9 % 14.5 % 15.0 % 13.0 %
Corporate expenses (2.9 )%   (2.6 )%   (2.9 )%   (2.6 )%   (2.8 )%   (2.6 )%   (2.9 )%   (3.4 )%   (3.5 )%   (3.1 )%
Adjusted operating margin 6.4 % 8.4 % 8.8 % 7.8 % 7.8 % 7.1 % 10.0 % 11.1 % 11.6 % 9.9 %
Restructuring inventory charges % % 2.0 % % 0.5 % 0.1 % (0.1 )% % 0.3 % 0.1 %
Impairment charges % % 4.9 % % 1.2 % % % % 3.2 % 0.8 %
Special (recoveries) % % % % % % % (1.5 )% % (0.4 )%
Special charges %   %   0.7 %   1.9 %   0.6 %   0.7 %   1.0 %   1.4 %   2.4 %   1.4 %
Total GAAP operating margin 6.4 %   8.4 %   1.3 %   5.8 %   5.5 %   6.3 %   9.1 %   11.1 %   5.6 %   8.1 %
 
 
                                     
2012 2013
1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL   1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL
ADJUSTED OPERATING INCOME
Energy $ 14,282 $ 18,445 $ 21,575 $ 18,591 $ 72,893 $ 16,940 $ 23,114 $ 25,441 $ 27,809 $ 93,304
Aerospace & Defense 5,672     5,671     3,026     2,332     16,701     2,864     5,724     5,705     4,342     18,635  
Segment operating income 19,954 24,116 24,601 20,923 89,594 19,804 28,838 31,146 32,151 111,939
Corporate expenses (6,254 )   (5,637 )   (6,096 )   (5,286 )   (23,272 )   (5,277 )   (6,570 )   (7,400 )   (7,400 )   (26,646 )
Adjusted operating income 13,700 18,479 18,505 15,637 66,322 14,528 22,268 23,746 24,751 85,293
Restructuring inventory charges 4,124 37 4,161 250 (242 ) 638 646
Impairment charges 10,348 10,348 6,872 6,872
Special (recoveries) (3,151 ) (3,151 )
Special charges         1,377     3,905     5,282     1,378     2,254     2,961     5,160     11,752  
Total GAAP operating income 13,700     18,479     2,656     11,695     46,531     12,900     20,256     23,936     12,081     69,174  
INTEREST EXPENSE, NET (1,081 ) (1,017 ) (1,122 ) (1,038 ) (4,259 ) (787 ) (838 ) (745 ) (792 ) (3,162 )
OTHER EXPENSE, NET (138 )   (184 )   (564 )   373     (513 )   (612 )   (626 )   (568 )   (167 )   (1,974 )
PRETAX INCOME 12,481 17,278 970 11,030 41,759 11,501 18,792 22,623 11,122 64,038
(PROVISION) BENEFIT FOR INCOME TAXES (3,896 )   (6,142 )   899     (1,822 )   (10,960 )   (3,592 )   (6,124 )   (4,903 )   (2,297 )   (16,916 )
EFFECTIVE TAX RATE 31.2 % 35.5 % (92.8 )% 16.5 % 26.2 % 31.2 % 32.6 % 21.7 % 20.7 % 26.4 %
NET INCOME $ 8,585     $ 11,136     $ 1,869     $ 9,208     $ 30,799     $ 7,908     $ 12,668     $ 17,720     $ 8,825     $ 47,121  
Weighted Average Common Shares Outstanding (Diluted) 17,390 17,451 17,467 17,499 17,452 17,529 17,607 17,667 17,710 17,629
EARNINGS PER COMMON SHARE (Diluted) $ 0.49     $ 0.64     $ 0.11     $ 0.53     $ 1.76     $ 0.45     $ 0.72     $ 1.00     $ 0.50     $ 2.67  
ADJUSTED EBITDA $ 18,534     $ 23,043     $ 22,809     $ 20,750     $ 85,136     $ 18,682     $ 26,419     $ 27,850     $ 29,441     $ 102,392  
ADJUSTED EBITDA AS A % OF SALES 8.6 %   10.5 %   10.9 %   10.3 %   10.1 %   9.1 %   11.8 %   13.0 %   13.8 %   11.9 %
CAPITAL EXPENDITURES $ 4,122 $ 6,661 $ 3,314 $ 4,073 $ 18,170 $ 4,707 $ 4,100 $ 4,772 $ 3,749 $ 17,328
 
 

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands, except earnings per share)

UNAUDITED

                                       
2012   2013
1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL   1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL
FREE CASH FLOW $ (7,089 )   $ 5,077   $ 18,746   $ 25,619   $ 42,353 $ 1,100   $ 9,525   $ 29,557   $ 14,696   $ 54,878
ADD:
Capital Expenditures 4,122     6,661     3,314     4,073     18,170     4,707     4,100     4,772     3,749     17,328  
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (2,967 )   $ 11,738     $ 22,060     $ 29,692     $ 60,523     $ 5,807     $ 13,625     $ 34,329     $ 18,445     $ 72,206  
NET DEBT (CASH) $ 57,263 $ 54,376 $ 34,706 $ 8,645 $ 8,645 $ 8,814 $ (1,376 ) $ (36,466 ) $ (52,637 ) $ (52,637 )
ADD:
Cash & Cash Equivalents 41,291 41,414 48,976 61,738 61,738 57,633 60,831 86,285 102,180 102,180
Investments 101     98     102     101     101     99     96     98     95     95  
TOTAL DEBT $ 98,655     $ 95,888     $ 83,784     $ 70,484     $ 70,484     $ 66,546     $ 59,551     $ 49,917     $ 49,638     $ 49,638  
DEBT AS % OF EQUITY 25 % 24 % 20 % 17 % 17 % 16 % 14 % 11 % 10 % 10 %
TOTAL DEBT 98,655     95,888     83,784     70,484     70,484     66,546     59,551     49,917     49,638     49,638  
TOTAL SHAREHOLDERS' EQUITY 399,018     397,957     409,016     418,247     418,247     418,819     432,151     459,058     476,887     476,887  
 
                                     
2012 2013
1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL   1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL
ADJUSTED OPERATING INCOME $ 13,700 $ 18,479 $ 18,505 $ 15,637 $ 66,322 $ 14,528 $ 22,268 $ 23,746 $ 24,751 $ 85,293
LESS:
Inventory restructuring charges 4,124 37 4,161 250 (242 ) 638 646
Impairment charges 10,348 10,348 6,872 6,872
Special (recoveries) (3,151 ) (3,151 )
Special charges         1,377     3,905     5,282     1,378     2,254     2,961     5,160     11,753  
OPERATING INCOME $ 13,700 $ 18,479 $ 2,656 $ 11,695 $ 46,531 $ 12,900 $ 20,256 $ 23,936 $ 12,081 $ 69,173
ADJUSTED NET INCOME $ 8,585 $ 11,136 $ 12,171 $ 11,770 $ 43,663 $ 9,043 $ 14,044 $ 16,439 $ 16,773 $ 56,299
LESS:
Inventory restructuring charges, net of tax 2,681 24 2,705 174 (165 ) 396 405
Impairment charges, net of tax 6,726 6,726 4,261 4,261
Special (recoveries), net of tax (3,151 ) (3,151 )
Special charges, net of tax         895     2,538     3,433     961     1,541     1,870     3,291     7,663  
NET INCOME $ 8,585     $ 11,136     $ 1,869     $ 9,208     $ 30,799     $ 7,908     $ 12,668     $ 17,720     $ 8,825     $ 47,121  
ADJUSTED EARNINGS PER SHARE $ 0.49 $ 0.64 $ 0.77 $ 0.69 $ 2.59 $ 0.52 $ 0.81 $ 0.93 $ 0.95 $ 3.21
LESS:
Inventory restructuring charges, net of tax 0.17 0.17 0.01 (0.01 ) 0.02 0.02
Impairment charges, net of tax 0.43 0.43 0.24 0.24
Special (recoveries), net of tax (0.18 ) (0.18 )
Special charges, net of tax         0.06     0.16     0.22     0.06     0.10     0.11     0.19     0.46  
EARNINGS PER COMMON SHARE (Diluted) $ 0.49     $ 0.64     $ 0.11     $ 0.53     $ 1.76     $ 0.45     $ 0.72     $ 1.00     $ 0.50     $ 2.67  
 
                                     
2012 2013
1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL   1ST QTR   2ND QTR   3RD QTR   4TH QTR   TOTAL
EBITDA $ 18,534 $ 23,043 $ 6,960 $ 16,808 $ 65,345 $ 17,054 $ 24,407 $ 23,368 $ 11,914 $ 86,272
LESS:
Interest expense, net (1,081 ) (1,017 ) (1,122 ) (1,038 ) (4,258 ) (787 ) (838 ) (745 ) (792 ) (3,162 )
Depreciation (4,008 ) (3,825 ) (3,932 ) (3,967 ) (15,732 ) (4,009 ) (4,026 ) (3,908 ) (4,091 ) (16,034 )
Amortization (964 ) (923 ) (936 ) (773 ) (3,596 ) (758 ) (751 ) (764 ) (766 ) (3,039 )
(Provision) benefit for income taxes (3,896 )   (6,142 )   899     (1,822 )   (10,960 )   (3,592 )   (6,124 )   (4,903 )   (2,297 )   (16,916 )
NET INCOME $ 8,585     $ 11,136     $ 1,869     $ 9,208     $ 30,799     $ 7,908     $ 12,668     $ 17,720     $ 8,825     $ 47,121  
ADJUSTED EBITDA $ 18,534 $ 23,043 $ 22,809 $ 20,750 $ 85,136 $ 18,682 $ 26,419 $ 27,850 $ 29,441 $ 102,392
Inventory restructuring charges (4,124 ) (37 ) (4,161 ) (250 ) 242 (638 ) (646 )
Impairment charges (10,348 ) (10,348 ) (6,872 ) (6,872 )
Special (recoveries) 3,151 3,151
Special charges (1,377 ) (3,905 ) (5,282 ) (1,378 ) (2,254 ) (2,961 ) (5,160 ) (11,753 )
Interest expense, net (1,081 ) (1,017 ) (1,122 ) (1,038 ) (4,258 ) (787 ) (838 ) (745 ) (792 ) (3,162 )
Depreciation (4,008 ) (3,825 ) (3,932 ) (3,967 ) (15,732 ) (4,009 ) (4,026 ) (3,908 ) (4,091 ) (16,034 )
Amortization (964 ) (923 ) (936 ) (773 ) (3,596 ) (758 ) (751 ) (764 ) (766 ) (3,039 )
(Provision) / benefit for income taxes (3,896 )   (6,142 )   899     (1,822 )   (10,960 )   (3,592 )   (6,124 )   (4,903 )   (2,297 )   (16,916 )
NET INCOME $ 8,585     $ 11,136     $ 1,869     $ 9,208     $ 30,799     $ 7,908     $ 12,668     $ 17,720     $ 8,825     $ 47,121  
 
 

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY

USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

UNAUDITED

 
  1st Quarter 2014
Low   High
REVENUE (in millions) $ 200 $ 210
 
EXPECTED ADJUSTED EARNINGS PER SHARE (DILUTIVE) $ 0.68 $ 0.73
LESS: Restructuring related charges, Impairment charges, Special charges $ 0.07 $ 0.06

PLUS: Special gain on legal settlement

$

0.09

  $ 0.09
EXPECTED EARNINGS PER COMMON SHARE (Diluted) $ 0.70   $ 0.76
 
Note: Assumes 29% tax rate and exchange rates at present values.

Contact:
CIRCOR International
Rajeev Bhalla, 781-270-1200
Executive Vice President & Chief Financial Officer
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