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CIRCOR Reports Second-Quarter 2013 Financial Results

  CIRCOR Reports Second-Quarter 2013 Financial Results

Business Wire

BURLINGTON, Mass. -- August 1, 2013

CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other
highly engineered products for markets including oil & gas, power generation
and aerospace, today announced financial results for the second quarter ended
June 30, 2013.

Second Quarter 2013 Highlights

  *Adjusted operating margin up 160 basis points to 10%, highest in four
    years
  *Adjusted EPS of $0.81 increased 27%
  *Organic revenue growth of 2%
  *Secured large specialty high pressure ball valve order for emerging FPSO
    technology
  *Completed previously announced restructuring – on track to deliver
    annualized savings of $7 million
  *Announced first step of CIRCOR simplification process

Management Comments

“We delivered a strong quarter due to our continued focus on growth, margin
expansion and cash generation,” said Scott Buckhout, CIRCOR’s President and
Chief Executive Officer. “Revenue increased sequentially in all three
segments, while our adjusted operating margin expanded to 10% -- our highest
level in four years.

“Our strategy to drive growth in the most innovative parts of our markets is
delivering results. During the second quarter, we won a large order for high
pressure ball valves to be used for emerging floating production, storage and
off-loading technology.

“We are also pleased to have completed our previously announced restructuring
initiatives on time and under budget. Through these projects, we delivered
more than $1 million of savings in the second quarter and are on pace to
deliver the $7 million of annualized savings that we had projected.”

Added Buckhout, “Today we are announcing the first step of a new initiative to
simplify CIRCOR, thereby reducing costs, growing margins and enhancing
shareholder value. We are implementing three new restructuring actions
designed to further reduce complexity and cost. This includes closing two
facilities and downsizing another, reducing our overhead, eliminating legacy
ERP systems, and increasing the utilization of our low cost manufacturing and
design capabilities in India. We expect these actions will result in
annualized savings of approximately $4 million.”

Second Quarter Results

Revenues for the second quarter of 2013 increased 2% to $223.6 million, from
$219.9 million in the second quarter of 2012. Net income for the second
quarter of 2013, including the impact of special charges of $2.0 million, was
$12.7 million, or $0.72 per diluted share, compared with net income of $11.1
million, or $0.64 per diluted share, for the second quarter of 2012. Adjusted
earnings per diluted share in the second quarter of 2013, excluding the impact
of the special charges, was $0.81, a 27% increase compared with $0.64 in the
prior year’s second-quarter.

The Company received orders totaling $200.1 million during the second quarter
of 2013, a decrease of 12% compared with the second quarter of 2012, due
primarily to lower Energy orders in the international project business. The
Energy business experienced a particularly difficult comparison with last year
when CIRCOR booked a $22 million order in the large project business. Backlog
as of June 30, 2013 increased 3% to $433.5 million from June 30, 2012.

During the second quarter of 2013, the Company generated $9.5 million of free
cash flow, up $4.4 million from the same period in 2012.

Third Quarter Guidance

For the third quarter of 2013, the Company expects revenues to be in the range
of $212 to $218 million. In addition, CIRCOR expects to record special charges
comprised of a gain of approximately $3.1 million related to a settlement on
the Brazil arbitration and restructuring related-charges of between $1.5 and
$1.7 million. Excluding these charges, adjusted earnings are expected to be in
the range of $0.76 to $0.83 per diluted share in the third quarter of 2013.

Segment Results

Energy

Energy segment revenues decreased 2% to $110.8 million for the second quarter
versus the same period in 2012.

For the second quarter of 2013, the Energy segment’s adjusted operating margin
increased 270 basis points to 13.8% year over year.

Incoming orders for the second quarter of 2013 were $107.2 million, a decrease
of 16% year over year, as a result of lower large international project
bookings. While the level of large international project inquiries and quoting
remains comparable to 2012, the time to finalize orders from the original
quotes has been increasing. This is likely the result of projects being
delayed. In addition, the comparison with the second quarter of 2012 was
difficult due to a $22 million project received in that quarter. Ending
backlog totaled $213.7 million, an increase of 8% year over year.

Flow Technologies

Flow Technologies segment revenues increased 6% to $74.6 million for the
second quarter of 2013.

Flow Technologies adjusted operating margin for the second quarter of 2013
increased 200 basis points to 14.8%.

Incoming orders for the Flow Technologies segment were $66.0 million for the
second quarter of 2013, a decrease of 6% year over year. Ending backlog
totaled $67.9 million, a decrease of 9% compared with the same period last
year.

Aerospace

Aerospace segment revenues increased 6% to $38.2 million for the second
quarter.

Aerospace segment adjusted operating margin for the second quarter of 2013
decreased slightly to 8.6% from 8.8% in the second quarter of 2012. Segment
margins were up 510 basis points sequentially as the benefits of the
restructuring program started to impact the business.

Incoming orders for the second quarter of 2013 were $26.9 million, a decrease
of 6% year over year. Ending backlog totaled $151.9 million, an increase of 1%
year over year.

Conference Call Information

CIRCOR International will hold a conference call to review its financial
results today, August 1, 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 call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. The
webcast will be archived for one year on the Company’s website.

Use of Non-GAAP Financial Measures

Adjusted net income, adjusted earnings per diluted share, adjusted operating
margin, and free cash flow are non-GAAP financial measures and are intended to
serve as a complement to results provided in accordance with accounting
principles generally accepted in the United States. Free cash flow is defined
as net cash from operating activities less capital expenditures. 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 third-quarter revenue and earnings
guidance and estimated total annualized pre-tax savings from restructuring
actions.  Actual events, performance or results could differ materially from
the anticipated events, performance or results expressed or implied by such
forward-looking statements. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING
OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK
FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND SUBSEQUENT REPORTS
ON FORMS 10-Q, WHICH CAN BE ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE
AT WWW.CIRCOR.COM. We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.

About CIRCOR International, Inc.

CIRCOR International, Inc. designs, manufactures and markets valves and other
highly engineered products for markets including energy, oil & gas, power
generation and aerospace. 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            Six Months Ended
                   June 30, 2013  July 1, 2012   June 30, 2013  July 1, 2012
Net revenues       $  223,644      $  219,862     $  429,042      $  434,142
Cost of revenues   153,538        156,046       299,086        311,714    
GROSS PROFIT       70,106          63,816         129,956         122,428
Selling, general
and                47,596          45,337         93,168          90,249
administrative
expenses
Special charges    2,254          —             3,632          —          
OPERATING INCOME   20,256         18,479        33,156         32,179     
Other (income)
expense:
Interest income    (79         )   (78        )   (122        )   (161       )
Interest expense   917             1,095          1,747           2,259
Other, net         626            184           1,239          322        
TOTAL OTHER        1,464          1,201         2,864          2,420      
EXPENSE
INCOME BEFORE      18,792          17,278         30,292          29,759
INCOME TAXES
Provision for      6,124          6,142         9,715          10,038     
income taxes
NET INCOME         $  12,668      $  11,136     $  20,577      $  19,721  
Earnings per
common share:
Basic              $  0.72         $  0.64        $  1.17         $  1.14
Diluted            $  0.72         $  0.64        $  1.17         $  1.13
Weighted average
number of common
shares
outstanding:
Basic              17,565          17,422         17,539          17,369
Diluted            17,607          17,451         17,569          17,421
                                                                             


CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)
                                                 Six Months Ended
                                                  June 30, 2013  July 1, 2012
OPERATING ACTIVITIES                                            
Net income                                        $  20,577       $  19,721
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation                                      8,035           7,833
Amortization                                      1,509           1,887
Payment for Leslie bankruptcy settlement          —               (1,000     )
Compensation expense of share-based plans         2,156           2,317
Tax effect of share-based compensation            (422       )    499
(Gain) loss on property, plant and equipment      (129       )    133
Changes in operating assets and liabilities,
net of effects from business acquisitions:
Trade accounts receivable                         (9,406     )    (6,312     )
Inventories                                       (4,059     )    (5,340     )
Prepaid expenses and other assets                 (2,412     )    (1,408     )
Accounts payable, accrued expenses and other      3,583          (9,559     )
liabilities
Net cash provided by operating activities         19,432         8,771      
INVESTING ACTIVITIES
Additions to property, plant and equipment        (8,808     )    (10,783    )
Proceeds from the sale of property, plant and     314            31         
equipment
Net cash used in investing activities             (8,494     )    (10,752    )
FINANCING ACTIVITIES
Proceeds from long-term debt                      74,255          108,943
Payments of long-term debt                        (84,679    )    (117,944   )
Dividends paid                                    (1,340     )    (1,331     )
Proceeds from the exercise of stock options       1,498           94
Tax effect of share-based compensation            422            (499       )
Net cash used in financing activities             (9,844     )    (10,737    )
Effect of exchange rate changes on cash and       (2,002     )    (723       )
cash equivalents
DECREASE IN CASH AND CASH EQUIVALENTS             (907       )    (13,441    )
Cash and cash equivalents at beginning of         61,738         54,855     
period
CASH AND CASH EQUIVALENTS AT END OF PERIOD        $  60,831      $  41,414  
                                                                             


CIRCOR INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(UNAUDITED)
                                                   June 30,     December 31,
                                                    2013          2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                           $ 60,831      $  61,738
Short-term investments                              96            101
Trade accounts receivable, less allowance for       158,286       150,825
doubtful accounts
Inventories                                         199,764       198,005
Prepaid expenses and other current assets           17,661        16,510
Deferred income tax asset                           15,431        15,505
Current income tax receivable                       2,171         —
Assets held for sale                                542          542        
Total Current Assets                                454,782      443,226    
PROPERTY, PLANT AND EQUIPMENT, NET                  104,477       105,903
OTHER ASSETS:
Goodwill                                            75,491        77,428
Intangibles, net                                    42,436        45,157
Deferred income tax asset                           25,283        30,064
Other assets                                        6,957        8,203      
TOTAL ASSETS                                        $ 709,426    $  709,981 
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable                                    $ 84,245      $  80,361
Accrued expenses and other current liabilities      59,240        67,235
Accrued compensation and benefits                   25,596        26,540
Income taxes payable                                3,996         393
Notes payable and current portion of long-term      7,206        7,755      
debt
Total Current Liabilities                           180,283      182,284    
LONG-TERM DEBT, NET OF CURRENT PORTION              52,345        62,729
DEFERRED INCOME TAXES                               9,797         10,744
OTHER NON-CURRENT LIABILITIES                       34,850        35,977
CONTINGENCIES AND COMMITMENTS
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.01 par value; 1,000,000
shares authorized; no shares issued and             —             —
outstanding
Common stock, $0.01 par value; 29,000,000 shares
authorized; 17,575,362 and 17,445,687 shares        176           174
issued and outstanding at June 30, 2013 and
December 31, 2012, respectively
Additional paid-in capital                          265,940       262,744
Retained earnings                                   177,748       158,509
Accumulated other comprehensive loss, net of        (11,713   )   (3,180     )
taxes
Total Shareholders’ Equity                          432,151      418,247    
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY          $ 709,426    $  709,981 
                                                                             


CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in millions)

(UNAUDITED)
                   Three Months Ended     Six Months Ended
                    June 30,   July 1,     June 30,   July 1,
                    2013        2012        2013        2012
ORDERS (1)
Energy              $ 107.2     $ 128.2     $ 217.4     $ 263.9
Aerospace           26.9        28.5        69.1        68.7
Flow Technologies   66.0       70.5       140.4      143.4
Total orders        $ 200.1    $ 227.2    $ 426.9    $ 476.0
                                                        
BACKLOG (2)         June 30,    July 1,
                    2013        2012
Energy              $ 213.7     $ 197.4
Aerospace           151.9       150.6
Flow Technologies   67.9       74.3    
Total backlog       $ 433.5    $ 422.3 
                                                        

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      2ND QTR       TOTAL
NET REVENUES
Energy          $ 109,264      $ 113,527      $ 109,968      $ 96,582      $ 429,341      $ 96,722      $ 110,832      $ 207,554
Aerospace       38,085         35,896         31,795         35,316        141,092        37,326        38,177         75,503
Flow            66,931        70,439        68,041        69,707       275,119       71,350       74,635        145,985   
Technologies
Total           214,280       219,862       209,804       201,605      845,552       205,398      223,644       429,042   
* ADJUSTED
OPERATING
MARGIN
Energy          8.2       %    11.1      %    14.0      %    12.5     %    11.4      %    11.1     %    13.8      %    12.5      %
Aerospace       10.8      %    8.8       %    4.2       %    3.5      %    7.0       %    3.5      %    8.6       %    6.1       %
Flow            11.3      %    12.8      %    13.1      %    13.1     %    12.6      %    12.7     %    14.8      %    13.8      %
Technologies
Segment
operating       9.6       %    11.3      %    12.2      %    11.1     %    11.1      %    10.3     %    13.2      %    11.8      %
margin
Corporate       (3.2      )%   (2.9      )%   (3.4      )%   (3.4     )%   (3.2      )%   (3.2     )%   (3.3      )%   (3.2      )%
expenses
* Adjusted
operating       6.4       %    8.4       %    8.8       %    7.8      %    7.8       %    7.1      %    10.0      %    8.6       %
margin
Restructuring
inventory       0.0       %    0.0       %    2.0       %    0.0      %    0.5       %    0.1      %    (0.1      )%   0.0       %
charges
Impairment      0.0       %    0.0       %    4.9       %    0.0      %    1.2       %    0.0      %    0.0       %    0.0       %
charges
Special         0.0       %    0.0       %    0.7       %    1.9      %    0.6       %    0.7      %    1.0       %    0.8       %
charges
Total
operating       6.4       %    8.4       %    1.3       %    5.8      %    5.5       %    6.3      %    9.1       %    7.7       %
margin
                2012                                                                      2013
                1ST QTR        2ND QTR        3RD QTR        4TH QTR       TOTAL          1ST QTR       2ND QTR        TOTAL
* ADJUSTED
OPERATING
INCOME
Energy          8,928          12,580         15,432         12,100        49,040         10,751        15,271         26,022
Aerospace       4,124          3,153          1,324          1,234         9,835          1,320         3,271          4,591
Flow            7,587         9,043         8,919         9,105        34,654        9,044        11,065        20,109    
Technologies
Segment
operating       20,639         24,776         25,675         22,439        93,529         21,115        29,607         50,722
income
Corporate       (6,939    )    (6,297    )    (7,170    )    (6,802   )    (27,207   )    (6,588   )    (7,339    )    (13,926   )
expenses
* Adjusted
operating       13,700         18,479         18,505         15,637        66,322         14,528        22,268         36,796
income
Restructuring
inventory       —              —              4,124          37            4,161          250           (242      )    8
charges
Impairment      —              —              10,348         —             10,348         —                            —
charges
Special         —             —             1,377         3,905        5,282         1,378        2,254         3,632     
charges
Total
operating       13,700        18,479        2,656         11,695       46,531        12,900       20,256        33,156    
income
INTEREST        (1,081    )    (1,017    )    (1,122    )    (1,038   )    (4,258    )    (787     )    (838      )    (1,625    )
EXPENSE, NET
OTHER           (138      )    (184      )    (564      )    373          (514      )    (612     )    (626      )    (1,239    )
EXPENSE, NET
PRETAX INCOME   12,481         17,278         970            11,030        41,759         11,501        18,792         30,293
(PROVISION)
BENEFIT FOR     (3,896    )    (6,142    )    899           (1,822   )    (10,960   )    (3,592   )    (6,124    )    (9,715    )
INCOME TAXES
EFFECTIVE TAX   31.2      %    35.5      %    (92.8     )%   16.5     %    26.2      %    31.2     %    32.6      %    32.1      %
RATE
NET INCOME      $ 8,585       $ 11,136      $ 1,869       $ 9,208      $ 30,799      $ 7,908      $ 12,668      $ 20,577  
Weighted
Average
Common Shares   17,390         17,451         17,467         17,499        17,452         17,529        17,607         17,569
Outstanding
(Diluted)
EARNINGS PER
COMMON SHARE    $ 0.49        $ 0.64        $ 0.11        $ 0.53       $ 1.76        $ 0.45       $ 0.72        $ 1.17    
(Diluted)
ADJUSTED        $ 18,534      $ 23,043      $ 22,809      $ 16,808     $ 81,194      $ 18,682     $ 26,419      $ 45,101  
EBITDA
ADJUSTED
EBITDA AS A %   8.6       %    10.5      %    10.9      %    8.3      %    9.6       %    9.1      %    11.8      %    10.5      %
OF SALES
CAPITAL         $ 4,122       $ 6,661       $ 3,314       $ 4,073      $ 18,170      $ 4,707      $ 4,100       $ 8,807   
EXPENDITURES
                                                                                                                       
* Adjusted Operating Income & Margin exclude inventory restructuring, 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   2ND QTR   TOTAL
FREE CASH FLOW
[NET CASH FLOW
FROM OPERATING   $(7,089)   $5,077     $18,746     $25,619    $42,353     $1,100     $9,525     $10,625
ACTIVITIES
LESS CAPITAL
EXPENDITURES]
ADD:
Capital          4,122      6,661      3,314       4,073      18,170      4,707      4,100      8,807
Expenditures
NET CASH (USED
IN) PROVIDED     $(2,967)   $11,738    $22,060     $29,692    $60,523     $5,807     $13,625    $19,432
BY OPERATING
ACTIVITIES
NET DEBT
[TOTAL DEBT
LESS CASH &
CASH             $57,263    $54,376    $34,706     $8,645     $8,645      $8,814     $(1,376)   $(1,376)
EQUIVALENTS
LESS
INVESTMENTS]
ADD:
Cash & Cash      41,291     41,414     48,976      61,738     61,738      57,633     60,831     60,831
Equivalents
Investments      101        98         102         101        101         99         96         96
TOTAL DEBT       $98,655    $95,888    $83,784     $70,484    $70,484     $66,546    $59,551    $59,551
DEBT AS % OF     25%        24%        20%         17%        17%         16%        14%        14%
EQUITY
TOTAL DEBT       98,655     95,888     83,784      70,484     70,484      66,546     59,551     59,551
TOTAL
SHAREHOLDERS'    399,018    397,957    409,016     418,247    418,247     418,819    432,151    432,151
EQUITY
EBIT [NET
INCOME LESS
INCOME TAXES     $13,562    $18,295    $2,092      $12,068    $46,017     $12,287    $19,630    $31,917
LESS INTEREST
EXPENSE, NET]
LESS:
Interest         (1,081)    (1,017)    (1,122)     (1,038)    (4,258)     (787)      (838)      (1,625)
expense, net
(Provision)
benefit for      (3,896)    (6,142)    899         (1,822)    (10,960)    (3,592)    (6,124)    (9,715)
income taxes
NET INCOME       $8,585     $11,136    $1,869      $9,208     $30,799     $7,908     $12,668    $20,577
                 2012                                                     2013
                 1ST QTR    2ND QTR    3RD QTR     4TH QTR    TOTAL       1ST QTR    2ND QTR    TOTAL
ADJUSTED
OPERATING
INCOME
[OPERATING
INCOME
EXCLUDING        $13,700    $18,479    $18,505     $15,600    $66,322     $14,528    $22,268    $36,796
INVENTORY
RESTRUCTURING,
IMPAIRMENT AND
SPECIAL
CHARGES]
LESS:
Inventory
restructuring    —          —          4,124       37         4,161       250        (242)      8
charges
Impairment       —          —          10,348      —          10,348      —                     —
charges
Special          —          —          1,377       3,905      5,282       1,378      2,254      3,632
charges
OPERATING        $13,700    $18,479    $2,656      $11,695    $46,531     $12,900    $20,256    $33,156
INCOME
ADJUSTED NET
INCOME [NET
INCOME
EXCLUDING
INVENTORY        $8,585     $11,136    $12,171     $11,770    $43,663     $9,043     $14,044    $23,088
RESTRUCTURING,
IMPAIRMENT AND
SPECIAL
CHARGES, NET
OF TAX]
LESS:
Inventory
restructuring    —          —          2,681       24         2,705       174        (165)      9
charges, net
of tax
Impairment
charges, net     —          —          6,726       —          6,726       —          —          —
of tax
Special
charges, net     —          —          895         2,538      3,433       961        1,541      2,502
of tax
NET INCOME       $8,585     $11,136    $1,869      $9,208     $30,799     $7,908     $12,668    $20,577
ADJUSTED
EARNINGS PER
SHARE [EPS
EXCLUDING
INVENTORY        $0.49      $0.64      $0.77       $0.69      $2.59       $0.52      $0.81      $1.33
RESTRUCTURING,
IMPAIRMENT AND
SPECIAL
CHARGES, NET
OF TAX]
LESS:
Inventory
restructuring    $—         $—         $0.17       $—         $0.17       $0.01      $(0.01)    $—
charges, net
of tax
Impairment
charges, net     $—         $—         $0.43       $—         $0.43       $—         $—         $—
of tax
Special
charges, net     $—         $—         $0.06       $0.16      $0.22       $0.06      $0.10      $0.16
of tax
EARNINGS PER
COMMON SHARE     $0.49      $0.64      $0.11       $0.53      $1.76       $0.45      $0.72      $1.17
(Diluted)
                 2012                                                     2013
                 1ST QTR    2ND QTR    3RD QTR     4TH QTR    TOTAL       1ST QTR    2ND QTR    TOTAL
EBITDA [NET
INCOME LESS
NET INTEREST
EXPENSE,         $18,534    $23,043    $2,092      $12,068    $65,345     $17,054    $24,407    $41,461
DEPRECIATION,
AMORTIZATION
AND INCOME
TAXES]
LESS:
Interest         (1,081)    (1,017)    (1,122)     (1,038)    (4,258)     (787)      (838)      (1,625)
expense, net
Depreciation     (4,008)    (3,825)    (3,932)     (3,967)    (15,732)    (4,009)    (4,026)    (8,035)
Amortization     (964)      (923)      (936)       (773)      (3,596)     (758)      (751)      (1,509)
(Provision)
benefit for      (3,896)    (6,142)    899         (1,822)    (10,960)    (3,592)    (6,124)    (9,715)
income taxes
NET INCOME       $8,585     $11,136    $1,869      $9,208     $30,799     $7,908     $12,668    $20,577
ADJUSTED
EBITDA [NET
INCOME
EXCLUDING
INVENTORY
RESTRUCTURING,
IMPAIRMENT AND
SPECIAL          $18,534    $23,043    $22,809     $20,750    $85,136     $18,682    $26,419    $45,101
CHARGES, NET
INTEREST
EXPENSE,
DEPRECIATION,
AMORTIZATION
AND INCOME
TAXES]
Inventory
restructuring    $—         $—         $(4,124)    $(37)      $(4,161)    $(250)     $242       $(8)
charges
Impairment       $—         $—         $(10,348)   $—         $(10,348)   $—         $—         $—
charges
Special          $—         $—         $(1,377)    $(3,905)   $(5,282)    $(1,378)   $(2,254)   $(3,632)
charges
Interest         $(1,081)   $(1,017)   $(1,122)    $(1,038)   $(4,258)    $(787)     $(838)     $(1,625)
expense, net
Depreciation     $(4,008)   $(3,825)   $(3,932)    $(3,967)   $(15,732)   $(4,009)   $(4,026)   $(8,035)
Amortization     $(964)     $(923)     $(936)      $(773)     $(3,596)    $(758)     $(751)     $(1,509)
(Provision)
benefit for      $(3,896)   $(6,142)   $899        $(1,822)   $(10,960)   $(3,592)   $(6,124)   $(9,715)
income taxes
NET INCOME       $8,585     $11,136    $1,869      $9,208     $30,799     $7,908     $12,668    $20,577
                                                                                                

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY

USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(UNAUDITED)
                                                      3rd Quarter 2013
                                                        Low        High
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS
EXCLUDING INVENTORY RESTRUCTURING, IMPAIRMENT AND       $ 0.76      $ 0.83
SPECIAL CHARGES, NET OF TAX]
LESS: RESTRUCTURING RELATED CHARGES [INVENTORY
RESTRUCTURING CHARGES, IMPAIRMENT CHARGES, SPECIAL       $ (0.06 )   $ (0.07 )
CHARGES, NET OF TAX]
PLUS: Acquisition Arbitration Settlement                 $ 0.18     $ 0.18  
EXPECTED EARNINGS PER COMMON SHARE (Diluted)             $ 0.88     $ 0.94  

Contact:

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