CIRCOR International, Inc. CIR, a leading provider of flow control solutions and other highly engineered products for markets including oil & gas, aerospace, power, process and industrial solutions, today announced financial results for the first quarter ended April 2, 2017.
First-Quarter 2017 Highlights
- Revenue of $145 million, GAAP EPS of $0.29 and Adjusted EPS of $0.32
- Energy orders of $104 million, up 45%; 25% organically
- Advanced Flow Solutions orders of $80 million, up 26% organically
- Operating Cash Flow of $16 million and Free Cash Flow of $13 million
"CIRCOR delivered solid first-quarter results with revenue of $145 million and adjusted earnings per share of $0.32," said Scott Buckhout, President and Chief Executive Officer. "Orders in our Energy segment were up 45% due to strong demand in our Distributed Valves business and our recent acquisition of Critical Flow Solutions. In our Advanced Flow Solutions segment, we reported a 26% organic increase in orders primarily due to strength in our aerospace and defense businesses. We expect this increase in order activity to translate into strong revenue growth and margin expansion as we progress through the year."
"During the first quarter, we generated $16 million in cash from operations, and more than $13 million in free cash flow," added Buckhout. "Our strong cash flow performance is a direct result of our continuous improvement actions focused on improving working capital performance."
"We remain optimistic about the market outlook across the majority of our end markets. Going forward, we will continue to focus on creating long-term value for shareholders by investing in growth, expanding margins, generating strong free cash flow, and being disciplined with capital deployment," concluded Buckhout.
Second-Quarter 2017 Guidance
The Company will provide its
guidance for the second quarter of 2017 during the conference call later
today.
Selected Consolidated Results (unaudited) |
|||||||||||||
($ millions except EPS) | Q1 2017 | Q1 2016 | Change | ||||||||||
Revenue | $ | 145.2 | $ | 150.8 | (4)% | ||||||||
GAAP Operating Income | $ | 7.4 | $ | 5.5 | 34% | ||||||||
Adjusted Operating Income1 | $ | 9.1 | $ | 11.3 | (19)% | ||||||||
GAAP Operating Margin | 5.1% | 3.6% | 150 bps | ||||||||||
Adjusted Operating Margin1 | 6.3% | 7.5% | (120) bps | ||||||||||
GAAP Earnings Per Share (Diluted) | $ | 0.29 | $ | 0.23 | 26% | ||||||||
Adjusted Earnings Per Share (Diluted)1 | $ | 0.32 | $ | 0.52 | (38)% | ||||||||
Operating Cash Flow | $ | 16.2 | $ | 7.7 | 112% | ||||||||
Free Cash Flow2 | $ | 13.4 | $ | 3.7 | 260% | ||||||||
Orders | $ | 184.1 | $ | 136.8 | 35% |
Segment Results |
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($ millions) | Q1 2017 | Q1 2016 | Change | |||||||||||
Energy | ||||||||||||||
Revenue | $ | 80.1 | $ | 83.4 | (4)% | |||||||||
Segment Operating Income | $ | 6.9 | $ | 9.3 | (26)% | |||||||||
Segment Operating Margin | 8.6% | 11.1% | (250) bps | |||||||||||
Orders | $ | 103.9 | $ | 71.4 | 45% | |||||||||
Advanced Flow Solutions | ||||||||||||||
Revenue | $ | 65.1 | $ | 67.4 | (3)% | |||||||||
Segment Operating Income | $ | 7.7 | $ | 8.5 | (9)% | |||||||||
Segment Operating Margin | 11.8% | 12.5% | (70) bps | |||||||||||
Orders | $ | 80.2 | $ | 65.4 | 23% |
1. Consolidated and Segment Results for Q1 2017 exclude non-cash acquisition-related intangible amortization, special and restructuring charges totaling $1.7 million ($0.6 million, net of tax). These charges include (i) $2.6 million charge for non-cash acquisition-related intangible amortization expense, (ii) $1.5 million charge related to other restructuring activities, primarily the exit of manufacturing operations in China and France restructuring actions; and (iii) $2.3 million net special gain primarily related to updating fair value estimates related to the purchase of Critical Flow Solutions, partially offset by Brazil losses incurred subsequent to our Q1 2016 closure of manufacturing operations. Consolidated and Segment Results for Q1 2016 exclude special and restructuring charges totaling $5.8 million ($4.8 million, net of tax). These charges include (i) $2.8 million charge related to the closure of the Brazil manufacturing operations; (ii) $1.9 million charge for non-cash acquisition-related intangible amortization expense; (iii) fixed asset write-down of $1.4 million for the closure of the California machining facility; and (iv) other items for a net gain of $0.3 million.
2. Free Cash Flow is a non-GAAP financial measure and is calculated by subtracting GAAP capital expenditures, net of proceeds from asset sales, from GAAP Operating Cash Flow.
Conference Call Information
CIRCOR International will hold a
conference call to review its financial results today, April 28, 2017,
at 9:00 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 operating
income, Adjusted operating margin, Adjusted net income, Adjusted
earnings per share (diluted), EBITDA, Adjusted EBITDA, net debt and free
cash flow are non-GAAP financial measures. These non-GAAP financial
measures are used by management in our financial and operating decision
making because we believe they better reflect our ongoing business and
allow for meaningful period-to-period comparisons. We believe these
non-GAAP financial measures provide useful information to investors and
others in understanding and evaluating the Company's current operating
performance and future prospects in the same manner as management does,
if they so choose. These non-GAAP financial measures also allow
investors and others to compare the Company's current financial results
with the Company's past financial results in a consistent manner. For
example:
- We exclude costs and tax effects associated with restructuring activities, such as reducing overhead and consolidating facilities. We believe that the costs related to these restructuring activities are not indicative of our normal operating costs.
- We exclude certain acquisition-related costs, including significant transaction costs and amortization of inventory step-ups and the related tax effects. We exclude these costs because we do not believe they are indicative of our normal operating costs.
- We exclude the expense and tax effects associated with the non-cash amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives of 5 to 20 years. Exclusion of the non-cash amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.
- We also exclude certain gains/losses and related tax effects, which are either isolated or cannot be expected to occur again with any predictability, and that we believe are not indicative of our normal operating gains and losses. For example, we exclude gains/losses from items such as the sale of a business, significant litigation-related matters and lump-sum pension plan settlements.
CIRCOR's management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company's operating performance and comparing such performance to that of prior periods and to the performance of our competitors. We use such measures when publicly providing our business outlook, assessing future earnings potential, evaluating potential acquisitions and dispositions and in our financial and operating decision-making process, including for compensation purposes.
Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with accounting principles generally accepted in the United States. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is 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 the realization of cost reductions from restructuring
activities. 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 flow control solutions and other
highly engineered products and sub-systems for markets including oil &
gas, aerospace, power, process and industrial solutions. 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.
CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) UNAUDITED |
||||||||||||
Three Months Ended | ||||||||||||
April 2, 2017 |
April 3, 2016 | |||||||||||
Net revenues | $ | 145,208 | $ | 150,798 | ||||||||
Cost of revenues | 98,575 | 105,565 | ||||||||||
GROSS PROFIT | 46,633 | 45,233 | ||||||||||
Selling, general and administrative expenses | 40,089 | 37,799 | ||||||||||
Special and restructuring (recoveries) charges, net | (810 | ) | 1,939 | |||||||||
OPERATING INCOME | 7,354 | 5,495 | ||||||||||
Other expense (income): | ||||||||||||
Interest expense, net | 1,669 | 631 | ||||||||||
Other expense (income), net | 225 | (528 | ) | |||||||||
TOTAL OTHER EXPENSE, NET | 1,894 | 103 | ||||||||||
INCOME BEFORE INCOME TAXES | 5,460 | 5,392 | ||||||||||
Provision for income taxes | 687 | 1,520 | ||||||||||
NET INCOME | $ | 4,773 | $ | 3,872 | ||||||||
Earnings per common share: | ||||||||||||
Basic | $ | 0.29 | $ | 0.24 | ||||||||
Diluted | $ | 0.29 | $ | 0.23 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||
Basic | 16,458 | 16,381 | ||||||||||
Diluted | 16,691 | 16,481 | ||||||||||
Dividends declared per common share | $ | 0.0375 | $ | 0.0375 |
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) UNAUDITED |
|||||||||||||
Three Months Ended | |||||||||||||
April 2, 2017 | April 3, 2016 | ||||||||||||
OPERATING ACTIVITIES | |||||||||||||
Net income | $ | 4,773 | $ | 3,872 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation | 3,798 | 3,263 | |||||||||||
Amortization | 3,092 | 2,529 | |||||||||||
Bad debt recovery | (54 | ) | (848 | ) | |||||||||
Loss on write down of inventory | 548 | 2,525 | |||||||||||
Compensation expense of share-based plans | 738 | 1,538 | |||||||||||
Tax effect of share-based plan compensation | — | 92 | |||||||||||
Change in fair value of contingent consideration | (2,500 | ) | — | ||||||||||
(Gain) Loss on sale or write down of property, plant and equipment | (110 | ) | 1,503 | ||||||||||
Changes in operating assets and liabilities, net of effects of acquisition: | |||||||||||||
Trade accounts receivable | 14,018 | 11,089 | |||||||||||
Inventories | 2,030 | 8,486 | |||||||||||
Prepaid expenses and other assets | (4,297 | ) | (4,287 | ) | |||||||||
Accounts payable, accrued expenses and other liabilities | (5,841 | ) | (22,108 | ) | |||||||||
Net cash provided by operating activities | 16,195 | 7,654 | |||||||||||
INVESTING ACTIVITIES | |||||||||||||
Purchases of property, plant and equipment | (3,001 | ) | (4,021 | ) | |||||||||
Proceeds from the sale of property, plant and equipment | 190 | 87 | |||||||||||
Business acquisition working capital adjustment | 1,467 | — | |||||||||||
Net cash used in investing activities | (1,344 | ) | (3,934 | ) | |||||||||
FINANCING ACTIVITIES | |||||||||||||
Proceeds from long-term debt | 34,900 | 35,139 | |||||||||||
Payments of long-term debt | (43,100 | ) | (27,871 | ) | |||||||||
Dividends paid | (624 | ) | (625 | ) | |||||||||
Proceeds from the exercise of stock options | 295 | 111 | |||||||||||
Tax effect of share-based plan compensation | — | (92 | ) | ||||||||||
Net cash (used in) provided by financing activities | (8,529 | ) | 6,662 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,055 | 1,657 | |||||||||||
INCREASE IN CASH AND CASH EQUIVALENTS | 7,377 | 12,039 | |||||||||||
Cash and cash equivalents at beginning of period | 58,279 | 54,541 | |||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 65,656 | $ | 66,580 |
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS (in thousands) UNAUDITED |
||||||||||||
April 2, 2017 | December 31, 2016 | |||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 65,656 | $ | 58,279 | ||||||||
Trade accounts receivable, less allowance for doubtful accounts of $4,748 and $5,056, respectively | 120,344 | 133,046 | ||||||||||
Inventories | 147,915 | 149,584 | ||||||||||
Prepaid expenses and other current assets | 33,543 | 29,557 | ||||||||||
Total Current Assets | 367,458 | 370,466 | ||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 99,271 | 99,713 | ||||||||||
OTHER ASSETS: | ||||||||||||
Goodwill | 206,795 | 206,659 | ||||||||||
Intangibles, net | 133,339 | 135,778 | ||||||||||
Other assets | 8,090 | 8,140 | ||||||||||
TOTAL ASSETS | $ | 814,953 | $ | 820,756 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Accounts payable | $ | 51,398 | $ | 46,767 | ||||||||
Accrued expenses and other current liabilities | 54,679 | 50,707 | ||||||||||
Accrued compensation and benefits | 16,457 | 20,249 | ||||||||||
Total Current Liabilities | 122,534 | 117,723 | ||||||||||
LONG-TERM DEBT | 243,000 | 251,200 | ||||||||||
DEFERRED INCOME TAXES | 12,454 | 13,657 | ||||||||||
OTHER NON-CURRENT LIABILITIES | 21,428 | 33,766 | ||||||||||
SHAREHOLDERS' EQUITY: | ||||||||||||
Common stock | 179 | 178 | ||||||||||
Additional paid-in capital | 291,586 | 289,423 | ||||||||||
Retained earnings | 269,109 | 265,543 | ||||||||||
Common treasury stock, at cost | (74,472 | ) | (74,472 | ) | ||||||||
Accumulated other comprehensive loss, net of tax | (70,865 | ) | (76,262 | ) | ||||||||
Total Shareholders' Equity | 415,537 | 404,410 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 814,953 | $ | 820,756 |
CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG (in millions) UNAUDITED |
|||||||||||
Three Months Ended | |||||||||||
April 2, |
April 3, |
||||||||||
ORDERS (1) | |||||||||||
Energy | $ | 103.9 | $ | 71.4 | |||||||
Advanced Flow Solutions | 80.2 | 65.4 | |||||||||
Total orders | $ | 184.1 | $ | 136.8 | |||||||
BACKLOG (2) |
April 2, |
April 3, |
|||||||||
Energy | $ | 146.2 | $ | 122.7 | |||||||
Advanced Flow Solutions | 135.6 | 137.3 | |||||||||
Total backlog | $ | 281.8 | $ | 260.0 | |||||||
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,
including backlog associated with acquisitions.
CIRCOR INTERNATIONAL, INC.
SEGMENT INFORMATION (in thousands, except percentages) UNAUDITED |
|||||||||||||||||||||||||||||||
2016 | 2017 | ||||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | ||||||||||||||||||||||||||
NET REVENUES | |||||||||||||||||||||||||||||||
Energy | $ | 83,409 | $ | 80,736 | $ | 68,901 | $ | 89,000 | $ | 322,046 | $ | 80,135 | |||||||||||||||||||
Advanced Flow Solutions | 67,389 | 65,656 | 65,932 | 69,236 | 268,213 | 65,073 | |||||||||||||||||||||||||
Total | $ | 150,798 | $ | 146,392 | $ | 134,833 | $ | 158,236 | $ | 590,259 | $ | 145,208 | |||||||||||||||||||
SEGMENT OPERATING INCOME | |||||||||||||||||||||||||||||||
Energy | $ | 9,296 | $ | 9,293 | $ | 6,755 | $ | 9,276 | $ | 34,619 | $ | 6,864 | |||||||||||||||||||
Advanced Flow Solutions | 8,452 | 8,064 | 8,008 | 8,939 | 33,463 | 7,711 | |||||||||||||||||||||||||
Corporate expenses | (6,488 | ) | (5,431 | ) | (6,522 | ) | (7,231 | ) | (25,672 | ) | (5,479 | ) | |||||||||||||||||||
Adjusted Operating Income | $ | 11,260 | $ | 11,926 | $ | 8,240 | $ | 10,984 | $ | 42,410 | $ | 9,096 | |||||||||||||||||||
SEGMENT OPERATING MARGIN % | |||||||||||||||||||||||||||||||
Energy | 11.1 | % | 11.5 | % | 9.8 | % | 10.4 | % | 10.7 | % | 8.6 | % | |||||||||||||||||||
Advanced Flow Solutions | 12.5 | % | 12.3 | % | 12.1 | % | 12.9 | % | 12.5 | % | 11.8 | % | |||||||||||||||||||
Adjusted Operating Margin | 7.5 | % | 8.1 | % | 6.1 | % | 6.9 | % | 7.2 | % | 6.3 | % |
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except percentages) UNAUDITED |
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2016 | 2017 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||||||||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 7,654 | $ | 10,100 | $ | 21,196 | $ | 20,449 | $ | 59,399 | $ | 16,195 | ||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||
Capital expenditures, net of sale proceeds | 3,934 | 1,926 | 3,730 | 3,402 | 12,992 | 2,811 | ||||||||||||||||||||||||
FREE CASH FLOW | $ | 3,720 | $ | 8,174 | $ | 17,466 | $ | 17,047 | $ | 46,407 | $ | 13,384 | ||||||||||||||||||
TOTAL DEBT | $ | 97,800 | $ | 97,600 | $ | 92,400 | $ | 251,200 | $ | 251,200 | $ | 243,000 | ||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||
Cash & cash equivalents | 66,580 | 72,970 | 84,929 | 58,279 | 58,279 | 65,656 | ||||||||||||||||||||||||
NET DEBT | $ | 31,220 | $ | 24,630 | $ | 7,471 | $ | 192,921 | $ | 192,921 | $ | 177,344 | ||||||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | $ | 414,107 | $ | 411,367 | $ | 416,598 | $ | 404,410 | $ | 404,410 | $ | 415,537 | ||||||||||||||||||
TOTAL DEBT AS % OF EQUITY | 24 | % | 24 | % | 22 | % | 62 | % | 62 | % | 58 | % | ||||||||||||||||||
NET DEBT AS % OF EQUITY | 8 | % | 6 | % | 2 | % | 48 | % | 48 | % | 43 | % |
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except per share data) UNAUDITED |
||||||||||||||||||||||||||||||
2016 | 2017 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||||||||||||||||||||
NET INCOME (LOSS) | $ | 3,872 | $ | 3,813 | $ | 4,418 | $ | (2,002 | ) | $ | 10,101 | $ | 4,773 | |||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||
Restructuring related inventory charges | 1,958 | 75 | — | 813 | 2,846 | — | ||||||||||||||||||||||||
Amortization of inventory step-up | — | — | — | 1,366 | 1,366 | — | ||||||||||||||||||||||||
Impairment charges | — | — | 208 | — | 208 | — | ||||||||||||||||||||||||
Restructuring charges, net | 1,163 | 3,259 | 2,252 | 2,301 | 8,975 | 1,458 | ||||||||||||||||||||||||
Acquisition amortization | 1,868 | 1,911 | 1,888 | 4,234 | 9,901 | 2,552 | ||||||||||||||||||||||||
Special charges (recoveries), net | 776 | 1,334 | 379 | 5,707 | 8,196 | (2,268 | ) | |||||||||||||||||||||||
Income tax impact | (954 | ) | (1,611 | ) | (1,519 | ) | (4,487 | ) | (8,571 | ) | (1,137 | ) | ||||||||||||||||||
ADJUSTED NET INCOME | $ | 8,683 | $ | 8,781 | $ | 7,626 | $ | 7,932 | $ | 33,022 | $ | 5,378 | ||||||||||||||||||
EARNINGS (LOSS) PER COMMON SHARE (Diluted) | $ | 0.23 | $ | 0.23 | $ | 0.27 | $ | (0.12 | ) | $ | 0.61 | $ | 0.29 | |||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||
Restructuring related inventory charges | 0.12 | — | — | 0.05 | 0.17 | — | ||||||||||||||||||||||||
Amortization of inventory step-up | — | — | — | 0.08 | 0.08 | — | ||||||||||||||||||||||||
Impairment charges | — | — | 0.01 | — | 0.01 | — | ||||||||||||||||||||||||
Restructuring charges, net | 0.07 | 0.20 | 0.14 | 0.14 | 0.54 | 0.09 | ||||||||||||||||||||||||
Acquisition amortization | 0.11 | 0.12 | 0.11 | 0.26 | 0.60 | 0.15 | ||||||||||||||||||||||||
Special charges (recoveries), net | 0.05 | 0.08 | 0.02 | 0.35 | 0.50 | (0.14 | ) | |||||||||||||||||||||||
Income tax impact | (0.06 | ) | (0.10 | ) | (0.09 | ) | (0.27 | ) | (0.52 | ) | (0.07 | ) | ||||||||||||||||||
ADJUSTED EARNINGS PER SHARE (Diluted) | $ | 0.52 | $ | 0.53 | $ | 0.46 | $ | 0.48 | $ | 1.99 | $ | 0.32 |
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands) UNAUDITED |
||||||||||||||||||||||||||||||
2016 | 2017 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||||||||||||||||||||
NET INCOME (LOSS) | $ | 3,872 | $ | 3,813 | $ | 4,418 | $ | (2,002 | ) | $ | 10,101 | $ | 4,773 | |||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||
Interest expense, net | (631 | ) | (605 | ) | (605 | ) | (1,468 | ) | (3,310 | ) | (1,669 | ) | ||||||||||||||||||
Depreciation | (3,263 | ) | (3,213 | ) | (3,138 | ) | (3,690 | ) | (13,304 | ) | (3,798 | ) | ||||||||||||||||||
Amortization | (2,529 | ) | (2,569 | ) | (2,488 | ) | (4,730 | ) | (12,316 | ) | (3,092 | ) | ||||||||||||||||||
(Provision for) benefit from income taxes | (1,520 | ) | (1,478 | ) | 1,673 | 1,746 | 421 | (687 | ) | |||||||||||||||||||||
EBITDA | $ | 11,815 | $ | 11,678 | $ | 8,976 | $ | 6,140 | $ | 38,610 | $ | 14,019 | ||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||
Restructuring related inventory charges | (1,958 | ) | (75 | ) | — | (813 | ) | (2,846 | ) | — | ||||||||||||||||||||
Amortization of inventory step-up | — | — | — | (1,366 | ) | (1,366 | ) | — | ||||||||||||||||||||||
Impairment charges | — | — | (208 | ) | — | (208 | ) | — | ||||||||||||||||||||||
Restructuring charges, net | (1,163 | ) | (3,259 | ) | (2,252 | ) | (2,301 | ) | (8,975 | ) | (1,458 | ) | ||||||||||||||||||
Special (charges) recoveries, net | (776 | ) | (1,334 | ) | (379 | ) | (5,707 | ) | (8,196 | ) | 2,268 | |||||||||||||||||||
ADJUSTED EBITDA | $ | 15,712 | $ | 16,346 | $ | 11,815 | $ | 16,327 | $ | 60,201 | $ | 13,209 |
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except percentages) UNAUDITED |
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2016 | 2017 | |||||||||||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||||||||||||||||||||
GAAP OPERATING INCOME (LOSS) | $ | 5,495 | $ | 5,347 | $ | 3,513 | $ | (3,437 | ) | $ | 10,918 | $ | 7,354 | |||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||
Restructuring related inventory charges | 1,958 | 75 | — | 813 | 2,846 | — | ||||||||||||||||||||||||
Amortization of inventory step-up | — | — | — | 1,366 | 1,366 | — | ||||||||||||||||||||||||
Impairment charges | — | — | 208 | — | 208 | — | ||||||||||||||||||||||||
Restructuring charges, net | 1,163 | 3,259 | 2,252 | 2,301 | 8,975 | 1,458 | ||||||||||||||||||||||||
Acquisition amortization | 1,868 | 1,911 | 1,888 | 4,234 | 9,901 | 2,552 | ||||||||||||||||||||||||
Special charges (recoveries), net | 776 | 1,334 | 379 | 5,707 | 8,196 | (2,268 | ) | |||||||||||||||||||||||
ADJUSTED OPERATING INCOME | $ | 11,260 | $ | 11,926 | $ | 8,240 | $ | 10,984 | $ | 42,410 | $ | 9,096 | ||||||||||||||||||
GAAP OPERATING MARGIN | 3.6 | % | 3.7 | % | 2.6 | % | (2.2 | )% | 1.8 | % | 5.1 | % | ||||||||||||||||||
LESS: | ||||||||||||||||||||||||||||||
Restructuring related inventory charges | 1.3 | % | 0.1 | % | — | % | 0.5 | % | 0.5 | % | — | % | ||||||||||||||||||
Amortization of inventory step-up | — | % | — | % | — | % | 0.9 | % | 0.2 | % | — | % | ||||||||||||||||||
Impairment charges | — | % | — | % | 0.2 | % | — | % | — | % | — | % | ||||||||||||||||||
Restructuring charges, net | 0.8 | % | 2.2 | % | 1.7 | % | 1.5 | % | 1.5 | % | 1.0 | % | ||||||||||||||||||
Acquisition amortization | 1.2 | % | 1.3 | % | 1.4 | % | 2.7 | % | 1.7 | % | 1.8 | % | ||||||||||||||||||
Special charges (recoveries), net | 0.5 | % | 0.9 | % | 0.3 | % | 3.6 | % | 1.4 | % | (1.6 | )% | ||||||||||||||||||
ADJUSTED OPERATING MARGIN | 7.5 | % | 8.1 | % | 6.1 | % | 6.9 | % | 7.2 | % | 6.3 | % |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170428005343/en/
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