(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
(Address of Principal Executive Offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered |
Item 2.02 | Results of Operations and Financial Condition. |
Item 8.01 | Other Events |
For the year ended December 31, | 2019 | 2018 | 2017 | |||||
Beginning claims | 29,089 | 32,234 | 36,052 | |||||
New claims | 2,848 | 2,434 | 2,819 | |||||
Settlements | (983 | ) | (1,011 | ) | (1,038 | ) | ||
Dismissals | (1,898 | ) | (4,568 | ) | (5,599 | ) | ||
Ending claims | 29,056 | 29,089 | 32,234 |
(in millions) | |||||||||||
For the year ended December 31, | 2019 | 2018 | 2017 | ||||||||
Settlement / indemnity costs incurred * | $ | 45.5 | $ | 63.0 | $ | 51.8 | |||||
Defense costs incurred * | 20.7 | 25.8 | 36.5 | ||||||||
Total costs incurred | $ | 66.2 | $ | 88.8 | $ | 88.3 | |||||
Settlement / indemnity payments | $ | 38.9 | $ | 61.5 | $ | 51.7 | |||||
Defense payments | 21.4 | 26.5 | 38.9 | ||||||||
Insurance receipts | (18.8 | ) | (24.1 | ) | (28.1 | ) | |||||
Pre-tax cash payments | $ | 41.5 | $ | 63.9 | $ | 62.5 |
Item 9.01 | Financial Statements and Exhibits. |
(a) | None | |
(b) | None | |
(c) | None | |
(d) | Exhibits | |
CRANE CO. | |||||
January 27, 2020 | |||||
By: | /s/ Richard A. Maue | ||||
Richard A. Maue | |||||
Senior Vice President and | |||||
Chief Financial Officer |
Document and Entity Information | As of | ||
1/27/2020 | |||
Entity Central Index Key | |||
Amendment Flag |
Exhibit 99.1 | ||||
Crane Co. | News | |||
Contact: | ||||
Jason D. Feldman | ||||
Director, Investor Relations | ||||
203-363-7329 | ||||
www.craneco.com |
• | GAAP earnings per diluted share (EPS) of $2.20, inclusive of a $2.98 per share charge related to a non-cash true-up of the Company's asbestos liability, compared to $5.50 in 2018. |
• | Excluding Special Items, EPS of $6.02 increased slightly compared to $5.99 in 2018. |
• | GAAP operating profit of $210 million and GAAP operating margin of 6.4%. |
• | Excluding Special Items, operating profit was a record $494 million and operating margin was a record 15.0%. |
• | Record free cash flow of $325 million (cash provided by operating activities less capital spending). |
• | Completed $80 million of share repurchases during the fourth quarter of 2019. |
• | Announcing a 10% dividend increase. |
• | Initiated a new round of proactive repositioning actions in our Fluid Handling business expected to generate $10 million of savings in 2022. |
• | Signed a definitive agreement to acquire CIRCOR's Instrumentation & Sampling (I&S) business for $172 million on a cash-free and debt-free basis as a strategic bolt-on to our process valve business. |
• | Acquired Cummins Allison Corp. on December 31, 2019 for $160 million on a cash-free and debt-free basis as a strategic bolt-on to our Crane Payment Innovations business. |
• | Introducing 2020 GAAP EPS guidance of $5.75-$6.05. |
• | Excluding Special Items, 2020 EPS guidance is $6.20-$6.50. |
Fourth Quarter | Change | ||||||||||||||
(dollars in millions) | 2019 | 2018 | |||||||||||||
Sales | $ | 277 | $ | 280 | $ | (3 | ) | (1 | %) | ||||||
Operating Profit | $ | 25 | $ | 31 | $ | (6 | ) | (19 | %) | ||||||
Operating Profit, before Special Items* | $ | 37 | $ | 34 | $ | 3 | 9 | % | |||||||
Profit Margin | 9.0 | % | 11.0 | % | |||||||||||
Profit Margin, before Special Items* | 13.5 | % | 12.3 | % | |||||||||||
*Please see the attached Non-GAAP Financial Measures tables |
Fourth Quarter | Change | ||||||||||||||
(dollars in millions) | 2019 | 2018 | |||||||||||||
Sales | $ | 315 | $ | 313 | $ | 2 | 1 | % | |||||||
Operating Profit | $ | 53 | $ | 46 | $ | 6 | 14 | % | |||||||
Operating Profit, before Special Items* | $ | 55 | $ | 57 | $ | (1 | ) | (2 | %) | ||||||
Profit Margin | 16.7 | % | 14.7 | % | |||||||||||
Profit Margin, before Special Items* | 17.6 | % | 18.1 | % | |||||||||||
*Please see the attached Non-GAAP Financial Measures tables |
Fourth Quarter | Change | ||||||||||||||
(dollars in millions) | 2019 | 2018 | |||||||||||||
Sales | $ | 203 | $ | 197 | $ | 6 | 3 | % | |||||||
Operating Profit | $ | 48 | $ | 44 | $ | 4 | 9 | % | |||||||
Operating Profit, before Special Items* | $ | 48 | $ | 45 | $ | 4 | 8 | % | |||||||
Profit Margin | 23.7 | % | 22.5 | % | |||||||||||
Profit Margin, before Special Items* | 23.8 | % | 22.8 | % | |||||||||||
*Please see the attached Non-GAAP Financial Measures tables |
Fourth Quarter | Change | ||||||||||||||
(dollars in millions) | 2019 | 2018 | |||||||||||||
Sales | $ | 43 | $ | 51 | $ | (7 | ) | (14 | %) | ||||||
Operating Profit | $ | 4 | $ | 5 | $ | (1 | ) | (24 | %) | ||||||
Profit Margin | 9.4 | % | 10.7 | % |
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Net sales: | ||||||||||||||||||
Fluid Handling | $ | 277.0 | $ | 279.7 | $ | 1,117.4 | $ | 1,101.8 | ||||||||||
Payment & Merchandising Technologies | 314.6 | 312.8 | 1,158.3 | 1,257.0 | ||||||||||||||
Aerospace & Electronics | 202.5 | 196.5 | 798.8 | 743.5 | ||||||||||||||
Engineered Materials | 43.4 | 50.7 | 208.6 | 243.2 | ||||||||||||||
Total net sales | $ | 837.5 | $ | 839.7 | $ | 3,283.1 | $ | 3,345.5 | ||||||||||
Operating (loss) profit: | ||||||||||||||||||
Fluid Handling | $ | 24.9 | $ | 30.8 | $ | 131.7 | $ | 118.8 | ||||||||||
Payment & Merchandising Technologies | 52.5 | 46.1 | 177.3 | 186.0 | ||||||||||||||
Aerospace & Electronics | 48.0 | 44.2 | 189.4 | 164.2 | ||||||||||||||
Engineered Materials | 4.1 | 5.4 | 26.8 | 37.8 | ||||||||||||||
Corporate | (17.0 | ) | (16.4 | ) | (66.9 | ) | (65.5 | ) | ||||||||||
Asbestos provision | (229.0 | ) | — | (229.0 | ) | — | ||||||||||||
Environmental provision | (18.9 | ) | — | (18.9 | ) | — | ||||||||||||
Total operating (loss) profit | (135.4 | ) | 110.1 | 210.4 | 441.3 | |||||||||||||
Interest income | 0.8 | 0.6 | 2.7 | 2.3 | ||||||||||||||
Interest expense | (11.8 | ) | (11.1 | ) | (46.8 | ) | (50.9 | ) | ||||||||||
Miscellaneous, net | 0.6 | 4.9 | 4.4 | 18.7 | ||||||||||||||
(Loss) income before income taxes | (145.8 | ) | 104.5 | 170.7 | 411.4 | |||||||||||||
(Benefit from) provision for income taxes | (33.3 | ) | 15.4 | 37.1 | 75.9 | |||||||||||||
Net (loss) income before allocation to noncontrolling interests | (112.5 | ) | 89.1 | 133.6 | 335.5 | |||||||||||||
Less: Noncontrolling interest in subsidiaries' earnings (loss) | 0.1 | (0.1 | ) | 0.3 | (0.1 | ) | ||||||||||||
Net (loss) income attributable to common shareholders | $ | (112.6 | ) | $ | 89.2 | $ | 133.3 | $ | 335.6 | |||||||||
Share data: | ||||||||||||||||||
(Loss) earnings per diluted share | $ | (1.89 | ) | $ | 1.46 | $ | 2.20 | $ | 5.50 | |||||||||
Average diluted shares outstanding | 59.5 | 60.9 | 60.6 | 61.0 | ||||||||||||||
Average basic shares outstanding | 59.5 | 59.5 | 59.8 | 59.6 | ||||||||||||||
Supplemental data: | ||||||||||||||||||
Cost of sales | $ | 794.6 | $ | 544.6 | $ | 2,352.0 | $ | 2,156.2 | ||||||||||
Selling, general & administrative | 178.3 | 170.9 | 720.7 | 713.4 | ||||||||||||||
Asbestos provision * | 229.0 | — | 229.0 | — | ||||||||||||||
Environmental provision * | 18.9 | — | 18.9 | — | ||||||||||||||
Acquisition and integration related charges * | 1.5 | 8.4 | 5.2 | 19.8 | ||||||||||||||
Repositioning related charges * | 14.1 | 5.7 | 30.3 | 14.7 | ||||||||||||||
Depreciation and amortization ** | 29.3 | 35.9 | 113.5 | 120.0 | ||||||||||||||
Stock-based compensation expense ** | 5.5 | 5.5 | 22.3 | 21.6 |
December 31, 2019 | December 31, 2018 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 393.9 | $ | 343.4 | ||||
Accounts receivable, net | 560.6 | 515.8 | ||||||
Current insurance receivable - asbestos | 14.1 | 16.0 | ||||||
Inventories, net | 456.7 | 411.5 | ||||||
Other current assets | 75.2 | 76.2 | ||||||
Total current assets | 1,500.5 | 1,362.9 | ||||||
Property, plant and equipment, net | 615.8 | 599.1 | ||||||
Long-term insurance receivable - asbestos | 83.6 | 75.0 | ||||||
Other assets | 766.1 | 602.0 | ||||||
Goodwill | 1,472.2 | 1,403.7 | ||||||
Total assets | $ | 4,438.2 | $ | 4,042.7 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Notes payable and current maturities of long-term debt | $ | 149.4 | $ | 6.9 | ||||
Accounts payable | 314.5 | 329.2 | ||||||
Current asbestos liability | 65.0 | 66.0 | ||||||
Accrued liabilities | 371.7 | 337.1 | ||||||
Income taxes | 13.0 | 1.0 | ||||||
Total current liabilities | 913.6 | 740.2 | ||||||
Long-term debt | 842.0 | 942.3 | ||||||
Long-term deferred tax liability | 73.8 | 53.2 | ||||||
Long-term asbestos liability | 646.6 | 451.3 | ||||||
Other liabilities | 485.9 | 328.6 | ||||||
Total equity | 1,476.3 | 1,527.1 | ||||||
Total liabilities and equity | $ | 4,438.2 | $ | 4,042.7 |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating activities: | ||||||||||||||||
Net (loss) income attributable to common shareholders | $ | (112.6 | ) | $ | 89.2 | $ | 133.3 | $ | 335.6 | |||||||
Noncontrolling interest in subsidiaries' earnings (loss) | 0.1 | (0.1 | ) | 0.3 | (0.1 | ) | ||||||||||
Net (loss) income before allocations to noncontrolling interests | (112.5 | ) | 89.1 | 133.6 | 335.5 | |||||||||||
Asbestos provision | 229.0 | — | 229.0 | — | ||||||||||||
Environmental provision | 18.9 | — | 18.9 | — | ||||||||||||
Loss on deconsolidation of joint venture | — | 1.7 | 1.2 | 1.7 | ||||||||||||
Realized gain on marketable securities | — | — | (1.1 | ) | — | |||||||||||
Depreciation and amortization | 29.3 | 35.9 | 113.5 | 120.0 | ||||||||||||
Stock-based compensation expense | 5.5 | 5.5 | 22.3 | 21.6 | ||||||||||||
Defined benefit plans and postretirement credit | (0.3 | ) | (3.4 | ) | (0.7 | ) | (15.0 | ) | ||||||||
Deferred income taxes | (49.8 | ) | 23.2 | (31.0 | ) | 47.7 | ||||||||||
Cash provided by (used for) operating working capital | 117.1 | 57.6 | (40.0 | ) | 16.3 | |||||||||||
Defined benefit plans and postretirement contributions | (2.7 | ) | (4.0 | ) | (8.7 | ) | (59.8 | ) | ||||||||
Environmental payments, net of reimbursements | (1.7 | ) | (0.9 | ) | (8.2 | ) | (6.3 | ) | ||||||||
Other | 2.6 | 4.2 | 6.6 | 16.0 | ||||||||||||
Subtotal | 235.4 | 208.9 | 435.4 | 477.7 | ||||||||||||
Asbestos related payments, net of insurance recoveries | (12.5 | ) | (17.5 | ) | (41.5 | ) | (63.9 | ) | ||||||||
Total provided by operating activities | 222.9 | 191.4 | 393.9 | 413.8 | ||||||||||||
Investing Activities: | ||||||||||||||||
Capital expenditures | (17.9 | ) | (33.2 | ) | (68.8 | ) | (108.8 | ) | ||||||||
Proceeds from disposition of capital assets | 1.8 | 0.6 | 3.1 | 1.9 | ||||||||||||
Payments for acquisitions, net of cash acquired | (156.2 | ) | — | (156.2 | ) | (648.0 | ) | |||||||||
Impact of deconsolidation of joint venture | — | 2.6 | (0.2 | ) | 2.6 | |||||||||||
Purchase of marketable securities | — | — | (8.8 | ) | — | |||||||||||
Proceeds from sale of marketable securities | — | — | 9.9 | — | ||||||||||||
Total used for investing activities | (172.3 | ) | (30.0 | ) | (221.0 | ) | (752.3 | ) | ||||||||
Financing Activities: | ||||||||||||||||
Dividends paid | (23.1 | ) | (20.8 | ) | (93.2 | ) | (83.5 | ) | ||||||||
Reacquisition of shares on open market | (79.9 | ) | (25.1 | ) | (79.9 | ) | (50.1 | ) | ||||||||
Stock options exercised, net of shares reacquired | 0.3 | 3.6 | 2.9 | 16.1 | ||||||||||||
Debt issuance costs | — | — | — | (5.4 | ) | |||||||||||
Repayment of long-term debt | (94.9 | ) | (1.4 | ) | (99.4 | ) | (452.2 | ) | ||||||||
Repayment of short-term debt | (7.4 | ) | — | (7.4 | ) | (100.0 | ) | |||||||||
Proceeds from issuance of long-term debt | — | 13.1 | 3.0 | 567.2 | ||||||||||||
Proceeds from issuance of short-term debt | — | — | — | 100.0 | ||||||||||||
Proceeds from (repayment of) issuance of commercial paper with maturities of 90 days or less | 124.4 | (106.3 | ) | 124.4 | — | |||||||||||
Proceeds from issuance of commercial paper with maturities greater than 90 days | 25.0 | — | 25.0 | — | ||||||||||||
Total used for financing activities | (55.6 | ) | (136.9 | ) | (124.6 | ) | (7.9 | ) | ||||||||
Effect of exchange rate on cash and cash equivalents | 10.1 | (4.7 | ) | 2.2 | (16.4 | ) | ||||||||||
Increase (decrease) in cash and cash equivalents | 5.1 | 19.8 | 50.5 | (362.8 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 388.8 | 323.6 | 343.4 | 706.2 | ||||||||||||
Cash and cash equivalents at end of period | $ | 393.9 | $ | 343.4 | $ | 393.9 | $ | 343.4 |
December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||||||||
Fluid Handling | $ | 267.0 | $ | 272.1 | $ | 274.9 | $ | 284.8 | $ | 279.6 | ||||||||||
Payment & Merchandising Technologies | 311.4 | * | 291.8 | 286.8 | 322.2 | 331.5 | ||||||||||||||
Aerospace & Electronics | 567.4 | 564.3 | 502.8 | 487.1 | 446.6 | |||||||||||||||
Engineered Materials | 9.4 | 10.1 | 11.5 | 12.3 | 14.9 | |||||||||||||||
Total backlog | $ | 1,155.2 | $ | 1,138.3 | $ | 1,076.0 | $ | 1,106.4 | $ | 1,072.6 |
Three Months Ended December 31, | Twelve Months Ended December 31, | Percent Change December 31, 2019 | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | Three Months | Twelve Months | ||||||||||||||
INCOME ITEMS | |||||||||||||||||||
Net sales | $837.5 | $839.7 | $3,283.1 | $3,345.5 | (0.3 | )% | (1.9 | )% | |||||||||||
Operating (loss) profit | (135.4) | 110.1 | 210.4 | 441.3 | NM | (52.3 | )% | ||||||||||||
Percentage of sales | (16.2 | )% | 13.1 | % | 6.4 | % | 13.2 | % | |||||||||||
Special items impacting operating (loss) profit: | |||||||||||||||||||
Asbestos provision | 229.0 | — | 229.0 | — | |||||||||||||||
Environmental provision | 18.9 | — | 18.9 | — | |||||||||||||||
Inventory step-up and backlog amortization | — | 0.3 | — | 9.1 | |||||||||||||||
Acquisition and integration related charges | 1.5 | 8.4 | 5.2 | 19.8 | |||||||||||||||
Repositioning related charges | 14.1 | 5.7 | 30.3 | 14.7 | |||||||||||||||
Operating profit before special items | $128.1 | $124.5 | $493.8 | $484.9 | 2.9 | % | 1.8 | % | |||||||||||
Percentage of sales | 15.3 | % | 14.8 | % | 15.0 | % | 14.5 | % | |||||||||||
Net (loss) income attributable to common shareholders | $(112.6) | $89.2 | $133.3 | $335.6 | |||||||||||||||
Per Share | $(1.89) | $1.46 | $2.20 | $5.50 | NM | (60.0 | )% | ||||||||||||
Special items impacting net (loss) income attributable to common shareholders: | |||||||||||||||||||
Asbestos provision - net of tax | 180.9 | — | 180.9 | — | |||||||||||||||
Per share | $3.04 | $2.98 | |||||||||||||||||
Environmental provision - net of tax | 14.9 | — | 14.9 | — | |||||||||||||||
Per share | $0.25 | $0.25 | |||||||||||||||||
Inventory step-up and backlog amortization - net of tax | — | 0.2 | — | 6.9 | |||||||||||||||
Per share | $0.00 | $0.11 | |||||||||||||||||
Acquisition and integration related charges - net of tax | 1.2 | 6.5 | 3.8 | 15.1 | |||||||||||||||
Per share | $0.02 | $0.11 | $0.06 | $0.25 | |||||||||||||||
Repositioning related charges - net of tax | 9.1 | 3.9 | 25.6 | 10.9 | |||||||||||||||
Per share | $0.15 | $0.06 | $0.43 | $0.18 | |||||||||||||||
Realized gain on marketable securities - net of tax | — | — | (0.8) | — | |||||||||||||||
Per share | $(0.01) | ||||||||||||||||||
Incremental financing costs associated with acquisition - net of tax | — | — | — | 2.1 | |||||||||||||||
Per share | $0.03 | ||||||||||||||||||
Deconsolidation of joint venture - net of tax | — | — | 0.8 | — | |||||||||||||||
Per share | $0.01 | ||||||||||||||||||
Impact of non-cash pension cost adjustment - net of tax * | 1.8 | — | 6.3 | — | |||||||||||||||
Per share | $0.03 | $0.10 | |||||||||||||||||
Impact of tax law change | — | 0.2 | — | (5.5) | |||||||||||||||
Per share | $0.00 | $(0.09) | |||||||||||||||||
Net income attributable to common shareholders before special items | $95.3 | $100.0 | $364.8 | $365.1 | (4.7 | )% | (0.1 | )% | |||||||||||
Per basic share | $1.60 | $1.68 | $6.10 | $6.12 | (4.8 | )% | (0.3 | )% | |||||||||||
Per diluted share | $1.58 | $1.64 | $6.02 | $5.99 | (3.7 | )% | 0.5 | % |
In the three months ended December 31, 2019, average shares outstanding excluding the effect of diluted stock options were used to compute the per share amounts since this period was in a loss position. Had net income attributable to common shareholders been reported for this period, average shares outstanding would have included the effect of diluted stock options when computing per share amounts (see chart below). |
Average basic shares outstanding | 59.5 | |
Effect of diluted stock options | 0.8 | |
Average shares outstanding including the effect of stock options | 60.3 |
When considering the effect of dilutive stock options on shares outstanding, net income attributable to common shareholders before special items is $1.58 per share for the three months ended December 31, 2019. |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Special items impacting provision for income taxes | |||||||||||||||||
(Benefit from) provision for income taxes - GAAP basis | $ | (33.3 | ) | $ | 15.4 | $ | 37.1 | $ | 75.9 | ||||||||
Tax effect of asbestos provision | 48.1 | — | 48.1 | — | |||||||||||||
Tax effect of environmental provision | 4.0 | — | 4.0 | — | |||||||||||||
Tax effect of inventory step-up and backlog amortization | — | — | — | 2.2 | |||||||||||||
Tax effect of acquisition and integration related charges | 0.2 | 2.0 | 1.3 | 4.7 | |||||||||||||
Tax effect of repositioning related charges | 5.0 | 1.7 | 4.7 | 3.8 | |||||||||||||
Tax effect of realized gain on marketable securities | — | — | (0.3 | ) | — | ||||||||||||
Tax effect of incremental financing costs associated with acquisition | — | — | — | 0.6 | |||||||||||||
Tax effect of deconsolidation of joint venture | — | — | 0.4 | — | |||||||||||||
Tax effect of impact of non-cash pension cost adjustment | 0.6 | — | 2.0 | — | |||||||||||||
Impact of tax law change | — | (0.2 | ) | — | 5.5 | ||||||||||||
Provision for income taxes - non-GAAP basis | $ | 24.6 | $ | 18.9 | $ | 97.3 | $ | 92.7 |
SEGMENT INFORMATION: | |||||||||||||||||||||||||
For the three months ended December 31, 2019 | |||||||||||||||||||||||||
Fluid Handling | Payment & Merchandising Technologies | Aerospace & Electronics | Engineered Materials | Corporate | Total Company | ||||||||||||||||||||
Net sales | $ | 277.0 | $ | 314.6 | $ | 202.5 | $ | 43.4 | $ | — | $ | 837.5 | |||||||||||||
Operating profit (loss) - GAAP | 24.9 | 52.5 | 48.0 | 4.1 | (264.9 | ) | (135.4 | ) | |||||||||||||||||
Asbestos provision, net | — | — | — | — | 229.0 | 229.0 | |||||||||||||||||||
Environmental provision, net | — | — | — | — | 18.9 | 18.9 | |||||||||||||||||||
Acquisition and integration related charges | 0.6 | 0.8 | — | — | 0.1 | 1.5 | |||||||||||||||||||
Repositioning related charges | 11.8 | 2.1 | 0.2 | — | — | 14.1 | |||||||||||||||||||
Operating profit (loss) before special items | $ | 37.3 | $ | 55.4 | $ | 48.2 | $ | 4.1 | $ | (17.0 | ) | $ | 128.1 | ||||||||||||
Percentage of sales | 13.5 | % | 17.6 | % | 23.8 | % | 9.4 | % | 15.3 | % |
For the three months ended December 31, 2018 | |||||||||||||||||||||||||
Fluid Handling | Payment & Merchandising Technologies | Aerospace & Electronics | Engineered Materials | Corporate | Total Company | ||||||||||||||||||||
Net Sales | $ | 279.7 | $ | 312.8 | $ | 196.5 | $ | 50.7 | $ | — | $ | 839.7 | |||||||||||||
Operating profit (loss) - GAAP | 30.8 | 46.1 | 44.2 | 5.4 | (16.4 | ) | 110.1 | ||||||||||||||||||
Inventory step-up and backlog amortization | — | 0.3 | — | — | — | 0.3 | |||||||||||||||||||
Acquisition and integration related charges | — | 8.4 | — | — | — | 8.4 | |||||||||||||||||||
Repositioning related charges | 3.5 | 1.7 | 0.5 | — | — | 5.7 | |||||||||||||||||||
Operating profit (loss) before special items | $ | 34.3 | $ | 56.5 | $ | 44.7 | $ | 5.4 | $ | (16.4 | ) | $ | 124.5 | ||||||||||||
Percentage of sales | 12.3 | % | 18.1 | % | 22.8 | % | 10.7 | % | 14.8 | % |
For the twelve months ended December 31, 2019 | |||||||||||||||||||||||||
Fluid Handling | Payment & Merchandising Technologies | Aerospace & Electronics | Engineered Materials | Corporate | Total Company | ||||||||||||||||||||
Net sales | $ | 1,117.4 | $ | 1,158.3 | $ | 798.8 | $ | 208.6 | $ | — | $ | 3,283.1 | |||||||||||||
Operating profit (loss) - GAAP | 131.7 | 177.3 | 189.4 | 26.8 | (314.8 | ) | 210.4 | ||||||||||||||||||
Asbestos provision, net | — | — | — | — | 229.0 | 229.0 | |||||||||||||||||||
Environmental provision, net | — | — | — | — | 18.9 | 18.9 | |||||||||||||||||||
Acquisition and integration related charges | 0.6 | 2.4 | — | — | 2.2 | 5.2 | |||||||||||||||||||
Repositioning related charges | 19.2 | 7.6 | 3.5 | — | — | 30.3 | |||||||||||||||||||
Operating profit (loss) before special items | $ | 151.5 | $ | 187.4 | $ | 192.9 | $ | 26.8 | $ | (64.8 | ) | $ | 493.8 | ||||||||||||
Percentage of sales | 13.6 | % | 16.2 | % | 24.1 | % | 12.9 | % | 15.0 | % |
For the twelve months ended December 31, 2018 | |||||||||||||||||||||||||
Fluid Handling | Payment & Merchandising Technologies | Aerospace & Electronics | Engineered Materials | Corporate | Total Company | ||||||||||||||||||||
Net sales | $ | 1,101.8 | $ | 1,257.0 | $ | 743.5 | $ | 243.2 | $ | — | $ | 3,345.5 | |||||||||||||
Operating profit (loss) - GAAP | 118.8 | 186.0 | 164.2 | 37.8 | (65.5 | ) | 441.3 | ||||||||||||||||||
Inventory step-up and backlog amortization | 0.4 | 8.7 | — | — | — | 9.1 | |||||||||||||||||||
Acquisition and integration related charges | — | 19.8 | — | — | — | 19.8 | |||||||||||||||||||
Repositioning related charges | 10.0 | 3.7 | 1.0 | — | — | 14.7 | |||||||||||||||||||
Operating profit (loss) before special items | $ | 129.2 | $ | 218.2 | $ | 165.2 | $ | 37.8 | $ | (65.5 | ) | $ | 484.9 | ||||||||||||
Percentage of sales | 11.7 | % | 17.4 | % | 22.2 | % | 15.5 | % | 14.5 | % |
For the three months ended September 30, 2019 | Payment & Merchandising Technologies | |
Net sales | $248.9 | |
Operating profit - GAAP | 35.1 | |
Acquisition and integration related charges | 0.1 | |
Repositioning related charges | 0.9 | |
Operating profit before special items | $36.1 | |
Percentage of sales | 14.5 | % |
2020 Full Year Guidance | ||||||||
2020 EARNINGS PER SHARE GUIDANCE: | Low | High | ||||||
Earnings per share - GAAP basis | $ | 5.75 | $ | 6.05 | ||||
Repositioning costs | 0.10 | 0.10 | ||||||
M&A related, net | 0.35 | 0.35 | ||||||
Earnings per Share - non-GAAP basis | $ | 6.20 | $ | 6.50 |
CASH FLOW ITEMS: |
Three Months Ended December 31, | Twelve Months Ended December 31, | 2020 Full Year Guidance | Twelve Months Ended December 31, | |||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | Low | High | 2011 | ||||||||||||||||||||||
Cash provided by operating activities before asbestos-related payments | $ | 235.4 | $ | 208.9 | $ | 435.4 | $ | 477.7 | $ | 455.0 | $ | 485.0 | $ | 229.1 | ||||||||||||||
Asbestos-related payments, net of insurance recoveries | (12.5 | ) | (17.5 | ) | (41.5 | ) | (63.9 | ) | (50.0 | ) | (50.0 | ) | (79.3 | ) | ||||||||||||||
Cash provided by operating activities | 222.9 | 191.4 | 393.9 | 413.8 | 405.0 | 435.0 | 149.8 | |||||||||||||||||||||
Less: Capital expenditures | (17.9 | ) | (33.2 | ) | (68.8 | ) | (108.8 | ) | (75.0 | ) | (75.0 | ) | (34.7 | ) | ||||||||||||||
Free cash flow | $ | 205.0 | $ | 158.2 | $ | 325.1 | $ | 305.0 | $ | 330.0 | $ | 360.0 | $ | 115.1 |
Certain non-GAAP measures have been provided to facilitate comparison with the prior year. | ||||||||||
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. | ||||||||||
In addition, Free Cash Flow provides supplemental information to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities. The measure of Free Cash Flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on the Company's long-term debt. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. |
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