DELAWARE | 001-14962 | 04-3477276 |
(State or Other Jurisdiction of Incorporation or Organization) | (Commission file number) | (I.R.S. Employer Identification No.) |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | Press Release regarding Earnings, Dated May 2, 2013 |
Title: | Vice President and Chief Financial Officer |
CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share data) UNAUDITED | |||||||
Three Months Ended | |||||||
March 31, 2013 | April 1, 2012 | ||||||
Net revenues | $ | 205,398 | $ | 214,280 | |||
Cost of revenues | 145,549 | 155,668 | |||||
GROSS PROFIT | 59,849 | 58,612 | |||||
Selling, general and administrative expenses | 45,571 | 44,912 | |||||
Special charges | 1,378 | — | |||||
OPERATING INCOME | 12,900 | 13,700 | |||||
Other (income) expense: | |||||||
Interest income | (43 | ) | (83 | ) | |||
Interest expense | 830 | 1,164 | |||||
Other, net | 612 | 138 | |||||
TOTAL OTHER EXPENSE | 1,399 | 1,219 | |||||
INCOME BEFORE INCOME TAXES | 11,501 | 12,481 | |||||
Provision for income taxes | 3,592 | 3,896 | |||||
NET INCOME | $ | 7,908 | $ | 8,585 | |||
Earnings per common share: | |||||||
Basic | $ | 0.45 | $ | 0.50 | |||
Diluted | $ | 0.45 | $ | 0.49 | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 17,511 | 17,315 | |||||
Diluted | 17,529 | 17,390 |
CIRCOR INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (UNAUDITED) | |||||||
Three Months Ended | |||||||
March 31, 2013 | April 1, 2012 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 7,908 | $ | 8,585 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation | 4,009 | 4,008 | |||||
Amortization | 758 | 964 | |||||
Compensation expense of share-based plans | 1,028 | 1,195 | |||||
Tax effect of share-based compensation | (285 | ) | 479 | ||||
(Gain) loss on property, plant and equipment | (66 | ) | 2 | ||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | |||||||
Trade accounts receivable | (2,455 | ) | 3,539 | ||||
Inventories | (6,461 | ) | (2,179 | ) | |||
Prepaid expenses and other assets | (827 | ) | (5,549 | ) | |||
Accounts payable, accrued expenses and other liabilities | 2,198 | (14,011 | ) | ||||
Net cash provided by (used in) operating activities | 5,807 | (2,967 | ) | ||||
INVESTING ACTIVITIES | |||||||
Additions to property, plant and equipment | (4,707 | ) | (4,122 | ) | |||
Proceeds from the sale of property, plant and equipment | 75 | 15 | |||||
Net cash used in investing activities | (4,632 | ) | (4,107 | ) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from long-term debt | 33,598 | 41,123 | |||||
Payments of long-term debt | (37,655 | ) | (47,806 | ) | |||
Dividends paid | (670 | ) | (666 | ) | |||
Proceeds from the exercise of stock options | 1,368 | 73 | |||||
Tax effect of share-based compensation | 285 | (479 | ) | ||||
Net cash used in financing activities | (3,074 | ) | (7,755 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (2,207 | ) | 1,265 | ||||
DECREASE IN CASH AND CASH EQUIVALENTS | (4,105 | ) | (13,564 | ) | |||
Cash and cash equivalents at beginning of period | 61,738 | 54,855 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 57,633 | $ | 41,291 |
CIRCOR INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) UNAUDITED | |||||||
March 31, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 57,633 | $ | 61,738 | |||
Short-term investments | 99 | 101 | |||||
Trade accounts receivable, less allowance for doubtful accounts of $1,683 and $1,706, respectively | 150,849 | 150,825 | |||||
Inventories | 201,618 | 198,005 | |||||
Prepaid expenses and other current assets | 17,647 | 16,510 | |||||
Deferred income tax asset | 15,365 | 15,505 | |||||
Assets held for sale | 542 | 542 | |||||
Total Current Assets | 443,753 | 443,226 | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | 104,756 | 105,903 | |||||
OTHER ASSETS: | |||||||
Goodwill | 76,535 | 77,428 | |||||
Intangibles, net | 42,954 | 45,157 | |||||
Deferred income tax asset | 28,563 | 30,064 | |||||
Other assets | 7,549 | 8,203 | |||||
TOTAL ASSETS | $ | 704,110 | $ | 709,981 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 90,756 | $ | 80,361 | |||
Accrued expenses and other current liabilities | 58,683 | 67,235 | |||||
Accrued compensation and benefits | 22,732 | 26,540 | |||||
Income taxes payable | 982 | 393 | |||||
Notes payable and current portion of long-term debt | 8,000 | 7,755 | |||||
Total Current Liabilities | 181,153 | 182,284 | |||||
LONG-TERM DEBT, NET OF CURRENT PORTION | 58,546 | 62,729 | |||||
DEFERRED INCOME TAXES | 9,956 | 10,744 | |||||
OTHER NON-CURRENT LIABILITIES | 35,636 | 35,977 | |||||
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; 17,549,210 and 17,445,687 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively | 175 | 174 | |||||
Additional paid-in capital | 264,719 | 262,744 | |||||
Retained earnings | 165,750 | 158,509 | |||||
Accumulated other comprehensive loss, net of taxes | (11,825 | ) | (3,180 | ) | |||
Total Shareholders’ Equity | 418,819 | 418,247 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 704,110 | $ | 709,981 |
CIRCOR INTERNATIONAL, INC. SUMMARY OF ORDERS AND BACKLOG (in millions) UNAUDITED | |||||||
Three Months Ended | |||||||
March 31, 2013 | April 1, 2012 | ||||||
ORDERS (1) | |||||||
Energy | $ | 110.1 | $ | 135.6 | |||
Aerospace | 42.2 | 40.2 | |||||
Flow Technologies | 74.5 | 72.9 | |||||
Total orders | $ | 226.8 | $ | 248.7 | |||
BACKLOG (2) | March 31, 2013 | April 1, 2012 | |||||
Energy | $ | 217.8 | $ | 195.2 | |||
Aerospace | 162.7 | 161.1 | |||||
Flow Technologies | 76.8 | 76.0 | |||||
Total backlog | $ | 457.3 | $ | 432.3 | |||
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 | ||||||||||||||||||
NET REVENUES | |||||||||||||||||||||||
Energy | $ | 109,264 | $ | 113,527 | $ | 109,968 | $ | 96,582 | $ | 429,341 | $ | 96,722 | |||||||||||
Aerospace | 38,085 | 35,896 | 31,795 | 35,316 | 141,092 | 37,326 | |||||||||||||||||
Flow Technologies | 66,931 | 70,439 | 68,041 | 69,707 | 275,119 | 71,350 | |||||||||||||||||
Total | 214,280 | 219,862 | 209,804 | 201,605 | 845,552 | 205,398 | |||||||||||||||||
* ADJUSTED OPERATING MARGIN | |||||||||||||||||||||||
Energy | 8.2 | % | 11.1 | % | 14.0 | % | 12.5 | % | 11.4 | % | 11.1 | % | |||||||||||
Aerospace | 10.8 | % | 8.8 | % | 4.2 | % | 3.5 | % | 7.0 | % | 3.5 | % | |||||||||||
Flow Technologies | 11.3 | % | 12.8 | % | 13.1 | % | 13.1 | % | 12.6 | % | 12.7 | % | |||||||||||
Segment operating margin | 9.6 | % | 11.3 | % | 12.2 | % | 11.1 | % | 11.1 | % | 10.3 | % | |||||||||||
Corporate expenses | (3.2 | )% | (2.9 | )% | (3.4 | )% | (3.4 | )% | (3.2 | )% | (3.2 | )% | |||||||||||
* Adjusted operating margin | 6.4 | % | 8.4 | % | 8.8 | % | 7.8 | % | 7.8 | % | 7.1 | % | |||||||||||
Repositioning inventory charges | 0.0 | % | 0.0 | % | 2.0 | % | 0.0 | % | 0.5 | % | 0.1 | % | |||||||||||
Impairment charges | 0.0 | % | 0.0 | % | 4.9 | % | 0.0 | % | 1.2 | % | 0.0 | % | |||||||||||
Special charges | 0.0 | % | 0.0 | % | 0.7 | % | 1.9 | % | 0.6 | % | 0.7 | % | |||||||||||
Total operating margin | 6.4 | % | 8.4 | % | 1.3 | % | 5.8 | % | 5.5 | % | 6.3 | % |
CIRCOR INTERNATIONAL, INC. SUMMARY REPORT BY SEGMENT (in thousands, except earnings per share) UNAUDITED | |||||||||||||||||||||||
* ADJUSTED OPERATING INCOME | |||||||||||||||||||||||
Energy | 8,928 | 12,580 | 15,432 | 12,100 | 49,040 | 10,751 | |||||||||||||||||
Aerospace | 4,124 | 3,153 | 1,324 | 1,234 | 9,835 | 1,320 | |||||||||||||||||
Flow Technologies | 7,587 | 9,043 | 8,919 | 9,105 | 34,654 | 9,044 | |||||||||||||||||
Segment operating income | 20,639 | 24,776 | 25,675 | 22,439 | 93,529 | 21,115 | |||||||||||||||||
Corporate expenses | (6,939 | ) | (6,297 | ) | (7,170 | ) | (6,802 | ) | (27,207 | ) | (6,588 | ) | |||||||||||
* Adjusted operating income | 13,700 | 18,479 | 18,505 | 15,637 | 66,322 | 14,528 | |||||||||||||||||
Repositioning inventory charges | — | — | 4,124 | 37 | 4,161 | 250 | |||||||||||||||||
Impairment charges | — | — | 10,348 | — | 10,348 | — | |||||||||||||||||
Special charges | — | — | 1,377 | 3,905 | 5,282 | 1,378 | |||||||||||||||||
Total operating income | 13,700 | 18,479 | 2,656 | 11,695 | 46,531 | 12,900 | |||||||||||||||||
INTEREST EXPENSE, NET | (1,081 | ) | (1,017 | ) | (1,122 | ) | (1,038 | ) | (4,258 | ) | (787 | ) | |||||||||||
OTHER EXPENSE, NET | (138 | ) | (184 | ) | (564 | ) | 373 | (514 | ) | (612 | ) | ||||||||||||
PRETAX INCOME | 12,481 | 17,278 | 970 | 11,030 | 41,759 | 11,501 | |||||||||||||||||
(PROVISION) BENEFIT FOR INCOME TAXES | (3,896 | ) | (6,142 | ) | 899 | (1,822 | ) | (10,960 | ) | (3,592 | ) | ||||||||||||
EFFECTIVE TAX RATE | 31.2 | % | 35.5 | % | (92.8 | )% | 16.5 | % | 26.2 | % | 31.2 | % | |||||||||||
NET INCOME | $ | 8,585 | $ | 11,136 | $ | 1,869 | $ | 9,208 | $ | 30,799 | $ | 7,908 | |||||||||||
Weighted Average Common Shares Outstanding (Diluted) | 17,390 | 17,451 | 17,467 | 17,499 | 17,452 | 17,529 | |||||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.49 | $ | 0.64 | $ | 0.11 | $ | 0.53 | $ | 1.76 | $ | 0.45 | |||||||||||
ADJUSTED EBITDA | $ | 18,534 | $ | 23,043 | $ | 22,809 | $ | 16,808 | $ | 81,194 | $ | 18,682 | |||||||||||
ADJUSTED EBITDA AS A % OF SALES | 8.6 | % | 10.5 | % | 10.9 | % | 8.3 | % | 9.6 | % | 9.1 | % | |||||||||||
CAPITAL EXPENDITURES | $ | 4,122 | $ | 6,661 | $ | 3,314 | $ | 4,073 | $ | 18,170 | $ | 4,707 | |||||||||||
* Adjusted Operating Income & Margin exclude inventory repositioning, impairment and special charges. |
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 | ||||||||||||||
FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES] | $(7,089) | $5,077 | $18,746 | $25,619 | $42,353 | $1,100 | |||||||||||||
ADD: | |||||||||||||||||||
Capital Expenditures | 4,122 | 6,661 | 3,314 | 4,073 | 18,170 | 4,707 | |||||||||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $(2,967) | $11,738 | $22,060 | $29,692 | $60,523 | $5,807 | |||||||||||||
NET DEBT [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS] | $57,263 | $54,376 | $34,706 | $8,645 | $8,645 | $8,814 | |||||||||||||
ADD: | |||||||||||||||||||
Cash & Cash Equivalents | 41,291 | 41,414 | 48,976 | 61,738 | 61,738 | 57,633 | |||||||||||||
Investments | 101 | 98 | 102 | 101 | 101 | 99 | |||||||||||||
TOTAL DEBT | $98,655 | $95,888 | $83,784 | $70,484 | $70,484 | $66,546 | |||||||||||||
DEBT AS % OF EQUITY | 25% | 24% | 20% | 17% | 17% | 16% | |||||||||||||
TOTAL DEBT | 98,655 | 95,888 | 83,784 | 70,484 | 70,484 | 66,546 | |||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 399,018 | 397,957 | 409,016 | 418,247 | 418,247 | 418,819 | |||||||||||||
EBIT [NET INCOME LESS INCOME TAXES LESS INTEREST EXPENSE, NET] | $13,562 | $ | 18,295 | $2,092 | $12,068 | $46,017 | $12,287 | ||||||||||||
LESS: | |||||||||||||||||||
Interest expense, net | (1,081) | (1,017) | (1,122) | (1,038) | (4,258) | (787) | |||||||||||||
(Provision) benefit for income taxes | (3,896) | (6,142) | 899 | (1,822) | (10,960) | (3,592) | |||||||||||||
NET INCOME | $8,585 | $11,136 | $1,869 | $9,208 | $30,799 | $7,908 |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share) UNAUDITED | |||||||||||||||||||
ADJUSTED OPERATING INCOME [OPERATING INCOME EXCLUDING INVENTORY REPOSITIONING, IMPAIRMENT AND SPECIAL CHARGES] | $13,700 | $ | 18,479 | $18,505 | $ | 15,600 | $ | 66,322 | $14,528 | ||||||||||
LESS: | |||||||||||||||||||
Inventory repositioning charges | — | — | 4,124 | 37 | 4,161 | 250 | |||||||||||||
Impairment charges | — | — | 10,348 | — | 10,348 | — | |||||||||||||
Special charges | — | — | 1,377 | 3,905 | 5,282 | 1,378 | |||||||||||||
OPERATING INCOME | $13,700 | $18,479 | $2,656 | $11,695 | $46,531 | $12,900 | |||||||||||||
ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING INVENTORY REPOSITIONING, IMPAIRMENT AND SPECIAL CHARGES, NET OF TAX] | $0.49 | $0.64 | $0.77 | $0.69 | $ | 2.59 | $0.52 | ||||||||||||
LESS: | |||||||||||||||||||
Inventory repositioning charges, net of tax | $— | $— | $0.17 | $— | $0.17 | $0.01 | |||||||||||||
Impairment charges, net of tax | $— | $— | $0.43 | $— | $0.43 | $— | |||||||||||||
Special charges, net of tax | $— | $— | $0.06 | $0.16 | $0.22 | $0.06 | |||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $0.49 | $0.64 | $0.11 | $0.53 | $1.76 | $0.45 | |||||||||||||
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except earnings per share) UNAUDITED | |||||||||||||||||||
EBITDA [NET INCOME LESS NET INTEREST EXPENSE, DEPRECIATION, AMORTIZATION AND INCOME TAXES] | $18,534 | $23,043 | $ | 2,092 | $ | 12,068 | $ | 65,345 | $17,054 | ||||||||||
LESS: | |||||||||||||||||||
Interest expense, net | (1,081) | (1,017) | (1,122) | (1,038) | (4,258) | (787) | |||||||||||||
Depreciation | (4,008) | (3,825) | (3,932) | (3,967) | (15,732) | (4,009) | |||||||||||||
Amortization | (964) | (923) | (936) | (773) | (3,596) | (758) | |||||||||||||
(Provision) benefit for income taxes | (3,896) | (6,142) | 899 | (1,822) | (10,960) | (3,592) | |||||||||||||
NET INCOME | $8,585 | $11,136 | $1,869 | $9,208 | $30,799 | $7,908 | |||||||||||||
ADJUSTED EBIDTA [NET INCOME EXCLUDING INVENTORY REPOSITIONING, IMPAIRMENT AND SPECIAL CHARGES, NET INTEREST EXPENSE, DEPRECIATION, AMORTIZATION AND INCOME TAXES] | $18,534 | $23,043 | $22,809 | $20,750 | $ | 85,136 | $18,682 | ||||||||||||
Inventory repositioning charges | $— | $— | $(4,124) | $(37) | $(4,161) | $(250) | |||||||||||||
Impairment charges | $— | $— | $(10,348) | $— | $(10,348) | $— | |||||||||||||
Special charges | $— | $— | $(1,377) | $(3,905) | $(5,282) | $(1,378) | |||||||||||||
Interest expense, net | $(1,081) | $(1,017) | $(1,122) | $(1,038) | $(4,258) | $(787) | |||||||||||||
Depreciation | $(4,008) | $(3,825) | $(3,932) | $(3,967) | $(15,732) | $(4,009) | |||||||||||||
Amortization | $(964) | $(923) | $(936) | $(773) | $(3,596) | $(758) | |||||||||||||
(Provision) benefit for income taxes | $(3,896) | $(6,142) | $899 | $(1,822) | $(10,960) | $(3,592) | |||||||||||||
NET INCOME | $8,585 | $11,136 | $1,869 | $9,208 | $30,799 | $7,908 |
CIRCOR INTERNATIONAL, INC. RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS UNAUDITED | ||||||||
2nd Quarter 2013 | ||||||||
Low | High | |||||||
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING INVENTORY REPOSITIONING, IMPAIRMENT AND SPECIAL CHARGES, NET OF TAX] | $ | 0.64 | $ | 0.70 | ||||
LESS: REPOSITIONING RELATED CHARGES | ||||||||
Inventory repositioning charges, net of tax | } | $ | (0.19 | ) | $ | (0.17 | ) | |
Impairment charges, net of tax | ||||||||
Special charges, net of tax | ||||||||
EXPECTED EARNINGS PER COMMON SHARE (Diluted) | $ | 0.45 | $ | 0.53 |