CIRCOR Reports Fourth-Quarter and Year-End 2012 Financial Results

  CIRCOR Reports Fourth-Quarter and Year-End 2012 Financial Results

                 Adjusted EPS of $0.69 Exceeds Guidance Range

       Full-Year Adjusted EPS Growth of 22% Driven by Margin Expansion

                        Repositioning Actions on Track

Business Wire

BURLINGTON, Mass. -- February 28, 2013

CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other
highly engineered products for the energy, industrial and aerospace markets,
today announced financial results for the fourth quarter and fiscal year ended
December 31, 2012.

“Our earnings this past quarter and year reflect our commitment to drive
improved operating results and margin expansion,” said Wayne Robbins, CIRCOR’s
Executive Vice President and Chief Operating Officer, Acting President and
Chief Executive Officer. “Our fourth quarter adjusted EPS increased 17% and
exceeded expectations driven by solid execution, particularly in Energy and
Flow Technologies. We also generated strong free cash flow in the quarter
bringing the full year to $42 million.”

“We are on schedule with the repositioning actions in California, Brazil and
India that we announced last quarter, which include consolidating facilities,
shifting expenses to lower cost regions and exiting certain non-strategic
product lines,” said Robbins. “These initiatives are positioning all three of
our segments to generate greater profitability and better focus on key
strategic markets. We continue to improve efficiency through our focus on Lean
principles and operational excellence and remain on target to begin realizing
annualized savings of approximately $7 million from our repositioning actions
in the second half of 2013.”

“Looking forward, we anticipate improved top- and bottom-line performance over
2012,” said Robbins. “We are aggressively executing our strategy with a
continued focus on margin expansion, including evaluating further
repositioning opportunities. We believe that the markets we serve are
attractive and provide opportunities for profitable growth, both organically
and through acquisitions.”

“We are pleased with the Company's performance under Wayne's leadership as
interim CEO,” said CIRCOR Chairman David F. Dietz. “The Board's previously
announced search for a permanent CEO is on track and progress has been made to
identify the right leader for the organization. We have a number of strong
candidates under consideration and expect to announce our decision in the
second quarter.”

Consolidated Results

Revenues for the fourth quarter of 2012 were $201.6 million, a 7% decrease
from $217.1 million in the fourth quarter of 2011. Net income for the fourth
quarter of 2012 was $9.2 million, or $0.53 per diluted share, which includes
special charges of $3.9 million compared with net income of $10.3 million, or
$0.59 per diluted share, for the fourth quarter of 2011. Excluding the special
charges from both periods, adjusted earnings per diluted share was $0.69 in
the fourth quarter of 2012, a 17% increase compared to the prior year’s fourth
quarter results of $0.59.

Excluding the special charges in both periods, adjusted operating income was
$15.6 million for the fourth quarter of 2012 compared with $15.0 million in
the fourth quarter of 2011, an increase of 4%.

The Company received orders totaling $202.3 million during the fourth quarter
of 2012, an increase of 9% compared with the fourth quarter of 2011. Backlog
as of December 31, 2012 was $447.0 million, up 13% from backlog of $397.4
million at December 31, 2011.

Energy

Energy segment revenues decreased 12% to $96.6 million for the fourth quarter
of 2012 from $110.2 million for the fourth quarter of 2011 as a result of
lower volume in the short-cycle business and timing of large international
energy and pipeline project shipments.

Incoming orders for the fourth quarter of 2012 were $95.6 million, an increase
of 11% year-over-year as a result of higher orders across the short-cycle,
large international energy projects and pipeline businesses. Ending backlog
totaled $211.3 million, an increase of 25% year-over-year, primarily as a
result of higher large international energy project orders.

For the fourth quarter of 2012, Energy segment adjusted operating margin
increased to 12.5% from 8.4% in the fourth quarter of 2011, primarily driven
by large international energy projects and improved pricing and improved
operating performance in Brazil. Segment adjusted operating margin for the
quarter excludes special and repositioning inventory impairment charges of
$0.7 million related to the repositioning of the Company’s Brazil operations
as announced last quarter.

Flow Technologies

Flow Technologies segment revenues decreased 2% to $69.7 million for the
fourth quarter of 2012 from $70.9 million in the fourth quarter of 2011.

Incoming orders for the Flow Technologies segment were $75.2 million for the
fourth quarter of 2012, an increase of 17% year-over-year, primarily due to
strength across most end markets. Ending backlog totaled $76.2 million, an
increase of 9% year-over-year.

Flow Technologies adjusted operating margin for the fourth quarter of 2012
increased to 13.1% from 12.9% in the fourth quarter of 2011, primarily due to
volume, pricing and productivity, offset by growth investments in the
Company's power markets.

Aerospace

Aerospace segment revenues decreased 2% to $35.3 million for the fourth
quarter of 2012 from $36.0 million in the fourth quarter of 2011 with
unfavorable foreign currency translation of 1% contributing to the decrease.

Incoming orders for the fourth quarter of 2012 were $31.5 million, a decrease
of 12% year-over-year primarily due to lower orders for commercial and
military landing gear as well as fluid control products. Ending backlog
totaled $159.5 million, an increase of 1% year-over-year.

Aerospace segment adjusted operating margin for the fourth quarter of 2012
decreased to 3.5% from 8.6% in the fourth quarter of 2011, primarily due to
production start-up and R&D investments to support new large programs with new
customers. These important programs with global aerospace leaders all have
very long time horizons and the Company expects its success should lead to
further business opportunities with these customers. Segment adjusted
operating margin excludes special and repositioning inventory charges of $0.3
million related to the repositioning of certain operations and manufacturing
activities within California as announced last quarter.

Financial Outlook

For the first quarter of 2013 the Company expects revenues to be in the range
of $199 to $206 million. Compared with the prior year, revenues are expected
to be lower primarily due to softer short-cycle energy volume in line with
anticipated reduced rig counts.

During the first quarter, the Company expects to incur pre-tax repositioning
related charges of between $3.0 and $3.7 million. Excluding those charges,
adjusted earnings are expected to be in the range of $0.43 to $0.53 per
diluted share. The Company expects lower year-over-year profitability in the
first quarter due primarily to lower Energy volume and Aerospace margins.

Tax rate on adjusted earnings is expected to be approximately 36%, which is
negatively impacted by repositioning charges in Brazil. Excluding
repositioning, the rate is anticipated to be approximately 31%. This guidance
assumes that exchange rates remain at present levels.

Conference Call Information

CIRCOR International will hold a conference call to review its financial
results today, February 28, 2013, at 10:00 a.m. ET. Those who wish to listen
to the conference call and view the accompanying presentation slides should
visit “Webcasts & Presentations” in the “Investors” portion of the CIRCOR
website. The live call also can be accessed by dialing (877) 407-5790 or (201)
689-8328. If you are unable to listen to the live call, 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 repositioning
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 valves and other
highly engineered products for the energy, industrial and aerospace markets.
With more than 7,500 customers in over 100 countries, CIRCOR has a diversified
product portfolio with recognized, market-leading brands. CIRCOR’s culture,
built on the CIRCOR Business System, is defined by the Company’s commitment to
attracting, developing and retaining the best talent and pursuing continuous
improvement in all aspects of its business and operations. The Company’s
strategy includes growing organically by investing in new, differentiated
products; adding value to component products; and increasing the development
of mission-critical subsystems and solutions. CIRCOR also plans to leverage
its strong balance sheet to acquire strategically complementary businesses.
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,  December 31,   December 31,  December 31,
                     2012           2011           2012           2011
Net revenues         $  201,606     $  217,110     $  845,552     $  822,349
Cost of revenues     141,186       157,736       604,009       596,954    
GROSS PROFIT         60,420         59,374         241,543        225,395
Selling, general
and administrative   44,820         44,338         179,382        168,421
expenses
Leslie asbestos
and bankruptcy       —              —              —              676
charges, net
Impairment charges   —              —              10,348         —
Special charges      3,905         —             5,282         —          
OPERATING INCOME     11,695        15,036        46,531        56,298     
Other (income)
expense:
Interest income      (8         )   (99        )   (269       )   (265       )
Interest expense     1,046          1,138          4,528          4,195
Other, net           (373       )   342           513           2,172      
TOTAL OTHER          665           1,381         4,772         6,102      
EXPENSE
INCOME BEFORE        11,030         13,655         41,759         50,196
INCOME TAXES
Provision for        1,821         3,370         10,960        13,562     
income taxes
NET INCOME           $  9,209      $  10,285     $  30,799     $  36,634  
Earnings per
common share:
Basic                $  0.53        $  0.60        $  1.77        $  2.12
Diluted              $  0.53        $  0.59        $  1.76        $  2.10
Weighted average
number of common
shares
outstanding:
Basic                17,450         17,280         17,405         17,240
Diluted              17,499         17,435         17,452         17,417
                                                                             

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)
                                                  Twelve Months Ended
                                                   December 31,  December 31,
                                                   2012           2011
OPERATING ACTIVITIES                                            
Net income                                         $  30,799      $  36,634
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation                                       15,732         15,085
Amortization                                       3,596          4,351
Impairment charges                                 10,348         —
Payment for Leslie bankruptcy settlement           (1,000     )   (76,625    )
Compensation expense of share-based plans          4,374          3,807
Tax effect of share-based compensation             642            (673       )
Deferred Income Taxes                              (832       )   307
Loss (gain) on property, plant and equipment       1,135          (69        )
Changes in operating assets and liabilities, net
of effects from business acquisitions:
Trade accounts receivable                          7,063          (17,862    )
Inventories                                        6,592          (38,588    )
Prepaid expenses and other assets                  (2,422     )   (22,918    )
Accounts payable, accrued expenses and other       (15,504    )   47,718     
liabilities
Net cash provided by (used in) operating           60,523        (48,833    )
activities
INVESTING ACTIVITIES
Additions to property, plant and equipment         (18,170    )   (17,901    )
Proceeds from the sale of property, plant and      541            117
equipment
Business acquisitions, net of cash acquired        —             (20,221    )
Net cash used in investing activities              (17,629    )   (38,005    )
FINANCING ACTIVITIES
Proceeds from long-term debt                       186,409        279,346
Payments of long-term debt                         (220,918   )   (178,905   )
Debt issuance costs                                —              (2,001     )
Dividends paid                                     (2,663     )   (2,650     )
Proceeds from the exercise of stock options        406            589
Tax effect of share-based compensation             (642       )   673        
Net cash (used in) provided by financing           (37,408    )   97,052     
activities
Effect of exchange rate changes on cash and cash   1,397         (1,111     )
equivalents
INCREASE IN CASH AND CASH EQUIVALENTS              6,883          9,103
Cash and cash equivalents at beginning of period   54,855        45,752     
CASH AND CASH EQUIVALENTS AT END OF PERIOD         $  61,738     $  54,855  
                                                                             

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

UNAUDITED
                                                  December 31,  December 31,
                                                   2012           2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                          $  61,738      $  54,855
Short-term investments                             101            99
Trade accounts receivable, less allowance for
doubtful accounts of $1,706 and $1,127,            150,825        156,075
respectively
Inventories, net                                   198,005        203,777
Prepaid expenses and other current assets          16,510         12,376
Deferred income tax asset                          15,505         16,320
Assets held for sale                               542           542        
Total Current Assets                               443,226       444,044    
PROPERTY, PLANT AND EQUIPMENT, NET                 105,903        104,434
OTHER ASSETS:
Goodwill                                           77,428         77,829
Intangibles, net                                   45,157         58,442
Deferred income tax asset                          30,064         27,949
Other assets                                       8,203         9,825      
TOTAL ASSETS                                       $  709,981    $  722,523 
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable                                   $  80,361      $  92,493
Accrued expenses and other current liabilities     67,235         63,386
Accrued compensation and benefits                  26,540         24,328
Asbestos liability                                 —              1,000
Income taxes payable                               393            5,553
Notes payable and current portion of long-term     7,755         8,796      
debt
Total Current Liabilities                          182,284       195,556    
LONG-TERM DEBT, NET OF CURRENT PORTION             62,729         96,327
DEFERRED INCOME TAXES                              10,744         11,284
OTHER NON-CURRENT LIABILITIES                      35,977         35,271
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; 17,445,687 and 17,268,212 shares       174            173
issued and outstanding at December 31, 2012 and
December 31, 2011, respectively
Additional paid-in capital                         262,744        258,209
Retained earnings                                  158,509        130,373
Accumulated other comprehensive loss, net of       (3,180     )   (4,670     )
taxes
Total Shareholders’ Equity                         418,247       384,085    
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY         $  709,981    $  722,523 
                                                                             

CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in millions)

UNAUDITED
                    Three Months Ended             Twelve Months Ended
                     December 31,    December 31,    December 31,    December
                     2012           2011            2012           31,
                                                                     2011
ORDERS (1)
Energy               $  95.6         $  86.2         $  477.6        $  396.8
Aerospace            31.5            35.9            143.1           165.0
Flow Technologies    75.2           64.1           283.0          286.7
Total orders         $  202.3       $  186.2       $  903.7       $  848.5
                                                                     
BACKLOG (2)          December 31,    December 31,
                     2012            2011
Energy               $  211.3        $  169.3
Aerospace            159.5           158.3
Flow Technologies    76.2           69.8      
Total backlog        $  447.0       $  397.4  
                                                                     
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
               2011                                                                    2012
                1ST QTR      2ND QTR      3RD QTR       4TH QTR       TOTAL          1ST QTR       2ND QTR       3RD QTR       4TH QTR      TOTAL
NET REVENUES
Energy          $ 99,170      $ 81,994      $ 103,300      $ 110,228      $ 394,692      $ 109,264      $ 113,527      $ 109,968      $ 96,582      $ 429,341
Aerospace       32,110        36,029        32,681         36,017         136,837        38,085         35,896         31,795         35,316        141,092
Flow            72,090       73,885       73,980        70,865        290,820       66,931        70,439        68,041        69,707       275,118   
Technologies
Total           203,370      191,908      209,961       217,110       822,349       214,280       219,862       209,804       201,606      845,552   
* ADJUSTED
OPERATING
MARGIN
Energy          6.4      %    5.3      %    7.2       %    8.4       %    7.0       %    8.2       %    11.1      %    14.0      %    12.5     %    11.4      %
Aerospace       11.6     %    11.2     %    5.6       %    8.6       %    9.3       %    10.8      %    8.8       %    4.2       %    3.5      %    7.0       %
Flow            13.7     %    12.4     %    13.6      %    12.9      %    13.1      %    11.3      %    12.8      %    13.1      %    13.1     %    12.6      %
Technologies
Segment
operating       9.8      %    9.1      %    9.2       %    9.9       %    9.5       %    9.6       %    11.3      %    12.2      %    11.1     %    11.1      %
margin
Corporate       (3.0     )%   (2.7     )%   (1.7      )%   (3.0      )%   (2.6      )%   (3.2      )%   (2.9      )%   (3.4      )%   (3.4     )%   (3.2      )%
expenses
* Adjusted
operating       6.8      %    6.5      %    7.5       %    6.9       %    6.9       %    6.4       %    8.4       %    8.8       %    7.8      %    7.8       %
margin
Leslie
asbestos and
bankruptcy      0.5      %    (0.1     )%   (0.1      )%   0.0       %    0.1       %    0.0       %    0.0       %    0.0       %    0.0      %    0.0       %
charges
(recoveries)
Repositioning
inventory       0.0      %    0.0      %    0.0       %    0.0       %    0.0       %    0.0       %    0.0       %    2.0       %    0.0      %    0.5       %
charges
Impairment      0.0      %    0.0      %    0.0       %    0.0       %    0.0       %    0.0       %    0.0       %    4.9       %    0.0      %    1.2       %
charges
Special         0.0      %    0.0      %    0.0       %    0.0       %    0.0       %    0.0       %    0.0       %    0.7       %    1.9      %    0.6       %
charges
Total
operating       6.3      %    6.5      %    7.6       %    6.9       %    6.8       %    6.4       %    8.4       %    1.3       %    5.8      %    5.5       %
margin
                                                                                                                                                    
* ADJUSTED
OPERATING
INCOME
Energy          6,393         4,373         7,441          9,225          27,432         8,928          12,580         15,432         12,100        49,040
Aerospace       3,727         4,021         1,846          3,081          12,675         4,124          3,153          1,324          1,234         9,835
Flow            9,854        9,133        10,037        9,171         38,195        7,587         9,043         8,919         9,105       34,654    
Technologies
Segment
operating       19,974        17,527        19,324         21,477         78,302         20,639         24,776         25,675         22,439        93,529
income
Corporate       (6,201   )    (5,100   )    (3,585    )    (6,441    )    (21,327   )    (6,939    )    (6,297    )    (7,170    )    (6,802   )   (27,207   )
expenses
* Adjusted
operating       13,773        12,427        15,739         15,036         56,975         13,700         18,479         18,505         15,637        66,322
income
Leslie
asbestos and
bankruptcy      1,001         (124     )    (201      )    —              676            —              —              —              —             —
charges
(recoveries)
Repositioning
inventory       —             —             —              —              —              —              —              4,124          37            4,161
charges
Impairment      —             —             —              —              —              —              —              10,348         —             10,348
charges
Special         —            —            —             —             —             —             —             1,377         3,905       5,282     
charges
Total
operating       12,772       12,551       15,940        15,036        56,299        13,700        18,479        2,656         11,695       46,531    
income
INTEREST        (773     )    (1,232   )    (887      )    (1,039    )    (3,930    )    (1,081    )    (1,017    )    (1,122    )    (1,038   )    (4,258    )
EXPENSE, NET
OTHER           (915     )    (560     )    (354      )    (342      )    (2,171    )    (138      )    (184      )    (564      )    373         (514      )
EXPENSE, NET
PRETAX INCOME   11,084        10,759        14,699         13,655         50,197         12,481         17,278         970            11,030        41,759
(PROVISION)
BENEFIT FOR     (3,178   )    (3,261   )    (3,752    )    (3,370    )    (13,562   )    (3,896    )    (6,142    )    899           (1,822   )    (10,960   )
INCOME TAXES
EFFECTIVE TAX   28.7     %    30.3     %    25.5      %    24.7      %    27.0      %    31.2      %    35.5      %    (92.8     )%   16.5     %    26.2      %
RATE
NET INCOME      $ 7,906      $ 7,497      $ 10,947      $ 10,285      $ 36,635      $ 8,585       $ 11,136      $ 1,869       $ 9,208      $ 30,799  
Weighted
Average
Common Shares   17,378        17,434        17,423         17,435         17,417         17,390         17,451         17,467         17,499        17,452
Outstanding
(Diluted)
EARNINGS PER
COMMON SHARE    $ 0.45       $ 0.43       $ 0.63        $ 0.59        $ 2.10        $ 0.49        $ 0.64        $ 0.11        $ 0.53       $ 1.76    
(Diluted)
ADJUSTED        $ 17,851     $ 16,564     $ 20,252      $ 19,572      $ 74,239      $ 18,534      $ 23,043      $ 22,809      $ 16,808     $ 81,194  
EBITDA
ADJUSTED
EBITDA AS A %   8.8      %    8.6      %    9.6       %    9.0       %    9.0       %    8.6       %    10.5      %    10.9      %    8.3      %    9.6       %
OF SALES
CAPITAL         $ 2,693      $ 4,770      $ 3,792       $ 6,647       $ 17,902      $ 4,122       $ 6,661       $ 3,314       $ 4,073      $ 18,170  
EXPENDITURES
                                                                                                                                                    
* Adjusted Operating Income & Margin exclude Leslie asbestos and bankruptcy, 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
                2011                                                                 2012
                 1ST QTR      2ND QTR      3RD QTR      4TH QTR      TOTAL         1ST QTR     2ND QTR     3RD QTR      4TH QTR     TOTAL
FREE CASH FLOW
[NET CASH FLOW
FROM OPERATING   $ 525         $ (77,244 )   $ (5,214  )   $ 15,199      $ (66,734 )   $ (7,089 )   $ 5,077      $ 18,746      $ 25,619     $ 42,353
ACTIVITIES
LESS CAPITAL
EXPENDITURES]
ADD:
Capital          2,693        4,770        3,792        6,647        17,902       4,122       6,661       3,314        4,073       18,170    
Expenditures
NET CASH
PROVIDED BY
(USED IN)        $ 3,218      $ (72,474 )   $ (1,422  )   $ 21,846     $ (48,832 )   $ (2,967 )   $ 11,738    $ 22,060     $ 29,692    $ 60,523  
OPERATING
ACTIVITIES
NET DEBT
(CASH) [TOTAL
DEBT LESS CASH
& CASH           $ (22,554 )   $ 56,828      $ 64,145      $ 50,169      $ 50,169      $ 57,263     $ 54,376     $ 34,706      $ 8,645      $ 8,645
EQUIVALENTS
LESS
INVESTMENTS]
ADD:
Cash & Cash      53,491        48,302        39,254        54,855        54,855        41,291       41,414       48,976        61,738       61,738
Equivalents
Investments      99           107          98           99           99           101         98          102          101         101       
TOTAL DEBT       $ 31,036     $ 105,237    $ 103,497    $ 105,123    $ 105,123    $ 98,655    $ 95,888    $ 83,784     $ 70,484    $ 70,484  
DEBT AS % OF     8         %   27        %   27        %   27        %   27        %   25       %   24       %   20        %   17       %   17        %
EQUITY
TOTAL DEBT       31,036       105,237      103,497      105,123      105,123      98,655      95,888      83,784       70,484      70,484    
TOTAL
SHAREHOLDERS'    374,706      385,833      384,296      384,085      384,085      399,018     397,957     409,016      418,247     418,247   
EQUITY
EBIT [NET
INCOME LESS
INCOME TAXES     $ 11,857      $ 11,989      $ 15,586      $ 14,694      $ 54,126      $ 13,562     $ 18,295     $ 2,092       $ 12,068     $ 46,017
LESS INTEREST
EXPENSE, NET]
LESS:
Interest         (773      )   (1,232    )   (887      )   (1,039    )   (3,930    )   (1,081   )   (1,017   )   (1,122    )   (1,038   )   (4,258    )
expense, net
(Provision)
benefit for      (3,178    )   (3,261    )   (3,752    )   (3,370    )   (13,562   )   (3,896   )   (6,142   )   899          (1,822   )   (10,960   )
income taxes
NET INCOME       $ 7,906      $ 7,496      $ 10,947     $ 10,285     $ 36,634     $ 8,585     $ 11,136    $ 1,869      $ 9,208     $ 30,799  
                                                                                                                                            
ADJUSTED
OPERATING
INCOME
[OPERATING
INCOME
EXCLUDING
LESLIE           $ 13,773      $ 12,426      $ 15,739      $ 15,036      $ 56,974      $ 13,700     $ 18,479     $ 18,505      $ 15,600     $ 66,322
ASBESTOS AND
BANKRUPTCY,
INVENTORY
REPOSITIONING,
IMPAIRMENT AND
SPECIAL
CHARGES]
LESS:
Leslie
asbestos and
bankruptcy       1,001         (124      )   (201      )   —             676           —            —            —             —            —
charges
(recoveries)
Inventory
repositioning    —             —             —             —             —             —            —            4,124         37           4,161
charges
Impairment       —             —             —             —             —             —            —            10,348        —            10,348
charges
Special          —            —            —            —            —            —           —           1,377        3,905       5,282     
charges
OPERATING        $ 12,772     $ 12,550     $ 15,940     $ 15,036     $ 56,298     $ 13,700    $ 18,479    $ 2,656      $ 11,695    $ 46,531  
INCOME
ADJUSTED
EARNINGS PER
SHARE [EPS
EXCLUDING
LESLIE
ASBESTOS AND
BANKRUPTCY,      $ 0.49        $ 0.43        $ 0.62        $ 0.59        $ 2.13        $ 0.49       $ 0.64       $ 0.77        $ 0.69       $ 2.59
INVENTORY
REPOSITIONING,
IMPAIRMENT AND
SPECIAL
CHARGES, NET
OF TAX]
LESS:
Leslie
asbestos and
bankruptcy       $ 0.04        $ —           $ (0.01   )   $ —           $ 0.03        $ —          $ —          $ —           $ —          $ —
charges
(recoveries),
net of tax
Inventory
repositioning    $ —           $ —           $ —           $ —           $ —           $ —          $ —          $ 0.17        $ 0.00       $ 0.17
charges, net
of tax
Impairment
charges, net     $ —           $ —           $ —           $ —           $ —           $ —          $ —          $ 0.43        $ —          $ 0.43
of tax
Special
charges, net     $ —          $ —          $ —          $ —          $ —          $ —         $ —         $ 0.06       $ 0.16      $ 0.22    
of tax
EARNINGS PER
COMMON SHARE     $ 0.45       $ 0.43       $ 0.63       $ 0.59       $ 2.10       $ 0.49      $ 0.64      $ 0.11       $ 0.53      $ 1.76    
(Diluted)
                                                                                                                                            
EBITDA [NET
INCOME LESS
NET INTEREST
EXPENSE,         $ 16,850      $ 16,688      $ 20,453      $ 19,572      $ 73,562      $ 18,534     $ 23,043     $ 2,092       $ 12,068     $ 65,345
DEPRECIATION,
AMORTIZATION
AND INCOME
TAXES]
LESS:
Interest         (773      )   (1,232    )   (887      )   (1,039    )   (3,930    )   (1,081   )   (1,017   )   (1,122    )   (1,038   )   (4,258    )
expense, net
Depreciation     (3,575    )   (3,921    )   (3,770    )   (3,820    )   (15,085   )   (4,008   )   (3,825   )   (3,932    )   (3,967   )   (15,732   )
Amortization     (1,418    )   (778      )   (1,097    )   (1,058    )   (4,351    )   (964     )   (923     )   (936      )   (773     )   (3,596    )
(Provision)
benefit for      (3,178    )   (3,261    )   (3,752    )   (3,370    )   (13,562   )   (3,896   )   (6,142   )   899          (1,822   )   (10,960   )
income taxes
NET INCOME       $ 7,906      $ 7,496     $ 10,947    $ 10,285    $ 36,634    $ 8,585    $ 11,136   $ 1,869      $ 9,208     $ 30,799  
ADJUSTED
EBIDTA [NET
INCOME
EXCLUDING
LESLIE
ASBESTOS AND
BANKRUPTCY,
INVENTORY
REPOSITIONING,   $ 17,851      $ 16,564      $ 20,252      $ 19,572      $ 74,238      $ 18,534     $ 23,043     $ 22,809      $ 20,750     $ 85,136
IMPAIRMENT AND
SPECIAL
CHARGES, NET
INTEREST
EXPENSE,
DEPRECIATION,
AMORTIZATION
AND INCOME
TAXES]
Leslie
asbestos and
bankruptcy       $ (1,001  )   $ 124         $ 201         $ —           $ (676    )   $ —          $ —          $ —           $ —          $ —
charges
(recoveries)
Inventory
repositioning    $ —           $ —           $ —           $ —           $ —           $ —          $ —          $ (4,124  )   $ (37    )   $ (4,161  )
charges
Impairment       $ —           $ —           $ —           $ —           $ —           $ —          $ —          $ (10,348 )   $ —          $ (10,348 )
charges
Special          $ —           $ —           $ —           $ —           $ —           $ —          $ —          $ (1,377  )   $ (3,905 )   $ (5,282  )
charges
Interest         $ (773    )   $ (1,232  )   $ (887    )   $ (1,039  )   $ (3,930  )   $ (1,081 )   $ (1,017 )   $ (1,122  )   $ (1,038 )   $ (4,258  )
expense, net
Depreciation     $ (3,575  )   $ (3,921  )   $ (3,770  )   $ (3,820  )   $ (15,085 )   $ (4,008 )   $ (3,825 )   $ (3,932  )   $ (3,967 )   $ (15,732 )
Amortization     $ (1,418  )   $ (778    )   $ (1,097  )   $ (1,058  )   $ (4,351  )   $ (964   )   $ (923   )   $ (936    )   $ (773   )   $ (3,596  )
(Provision)
benefit for      $ (3,178  )   $ (3,261  )   $ (3,752  )   $ (3,370  )   $ (13,562 )   $ (3,896 )   $ (6,142 )   $ 899        $ (1,822 )   $ (10,960 )
income taxes
NET INCOME       $ 7,906      $ 7,496      $ 10,947     $ 10,285     $ 36,634     $ 8,585     $ 11,136    $ 1,869      $ 9,208     $ 30,799  
                                                                                                                                                      

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY

USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

UNAUDITED
                                                     1st Quarter 2013      
                                                       Low       High  
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS
EXCLUDING INVENTORY REPOSITIONING, IMPAIRMENT AND     $ 0.43        $ 0.53
SPECIAL CHARGES, NET OF TAX]
LESS: REPOSITIONING RELATED CHARGES [INVENTORY
REPOSITIONING, IMPAIRMENT AND SPECIAL CHARGES, NET     $ (0.15 )    $ (0.12 )
OF TAX]
                                                                       
EXPECTED EARNINGS PER COMMON SHARE (Diluted)           $ 0.28       $ 0.41  
                                                                             

Contact:

CIRCOR International
Frederic M. Burditt, 781-270-1200
Chief Financial Officer