CIRCOR Reports Third-Quarter 2013 Financial Results

  CIRCOR Reports Third-Quarter 2013 Financial Results

Business Wire

BURLINGTON, Mass. -- October 31, 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 quarter ended
September 29, 2013.

Third Quarter 2013 Highlights

  *Adjusted operating margin increased 230 basis points to 11.1%
  *Adjusted EPS grew 22% to $0.93
  *Revenue growth was 2%
  *Free Cash Flow was $30 million; YTD free cash flow at 105% of net income
  *Flow Technologies segment reported record bookings, up 22% year-over-year
  *Restructuring initiatives to simplify CIRCOR on schedule
  *Announcing next step of the CIRCOR simplification process

Management Comments

“Q3 was a strong quarter resulting from our ongoing focus on growth, margin
expansion, and cash generation,” said Scott Buckhout, CIRCOR’s President and
Chief Executive Officer. “We delivered another quarter of double-digit
adjusted operating margin, up 230 basis points from last year. On the growth
side, Flow Technologies had a record quarter on orders as we benefited from
robust downstream oil & gas activity and penetration into new markets and
applications.

“Free cash flow was strong in the quarter as a result of improved margins and
working capital performance. Year-to-date free cash flow exceeded net income.

“The restructuring actions we announced last quarter are on schedule and
expected to deliver the projected annual savings of approximately $4 million
beginning in 2014.

“In addition, we recently updated our 5-year strategic plan. Based on that
work we are changing our organizational structure to simplify the way we
manage CIRCOR and, over time, better align our businesses with end markets. As
part of the organizational change, we will consolidate our group structure
from three groups to two. Initially, these changes are focused on reducing
management layers and combining back-office operations. Our commercial
organization will remain unchanged. We expect to complete this reorganization
in the fourth quarter of 2013 and anticipate a reduction in our annual
expenses of approximately $5.0 million.

“Finally, we intend to move to two reporting segments during the fourth
quarter consistent with the new management structure at CIRCOR. The first
segment will be ‘Energy,’ which will include all of the businesses from the
existing Energy segment and a majority of the current ‘Flow Technologies’
businesses. The primary markets served in the new Energy segment are oil &
gas: upstream, midstream and downstream; as well as the global power market.
The second segment will be ‘Aerospace and Defense,’ which will include all of
the current Aerospace segment businesses plus a few primarily defense-oriented
businesses currently in the Flow Technologies segment.

“In conjunction with these changes, Wayne Robbins will transition from his
role as Executive Vice President & COO to Executive Vice President and Group
President of the new CIRCOR Energy group. Michael Dill, the current Group Vice
President of CIRCOR Aerospace, shall continue as Group Vice President of
CIRCOR Aerospace and Defense,” concluded Buckhout.

Consolidated Results

Revenues for the third quarter of 2013 increased 2% to $214.7 million, from
$209.8 million in the third quarter of 2012. Adjusted earnings per diluted
share in the third quarter of 2013, excluding the impact of the special
charges, was $0.93, a 22% increase compared with $0.76 in the prior year’s
third-quarter. Net income for the third quarter of 2013, including the impact
of special charges/(recoveries) of ($0.2) million, was $17.7 million, or $1.00
per diluted share, compared with net income of $1.9 million, or $0.11 per
diluted share, for the third quarter of 2012, which included special and
impairment charges of $11.7 million.

The Company received orders totaling $223.3 million during the third quarter
of 2013, a decrease of 1% compared with the third quarter of 2012, due
primarily to lower Energy orders in the international project business, which
were mostly offset by strong Flow Technologies and Aerospace orders. Backlog
as of September 29, 2013 increased 1% to $446.9 million from September 30,
2012.

During the third quarter of 2013, the Company generated $29.6 million of free
cash flow, up $10.8 million from the same period in 2012. Free cash flow for
the first nine months of 2013 was $40.2 million, up $23.4 million from the
same period in 2012.

Fourth-Quarter Guidance

For the fourth quarter of 2013, the Company expects revenues to be in the
range of $222 to $228 million. In addition, CIRCOR expects restructuring
related-charges of approximately $5.3 to $6.0 million. Excluding these
charges, adjusted earnings are expected to be in the range of $0.88 to $0.95
per diluted share in the fourth quarter of 2013.

Segment Results

Energy

Energy segment revenues decreased 1% to $108.5 million for the third quarter
versus the same period in 2012.

The Energy segment’s adjusted operating margin increased 310 basis points to
17.1% year over year.

Incoming orders for the third quarter of 2013 were $101.0 million, a decrease
of 14% year over year, mostly as a result of lower large international project
bookings. CIRCOR continues to see high levels of quoting activity on new
projects; however some projects are delayed. Ending backlog totaled $208.5
million, a decrease of 1% year over year.

Flow Technologies

Flow Technologies segment revenues increased 3% to $69.8 million for the third
quarter of 2013.

Flow Technologies adjusted operating margin for the third quarter of 2013
increased 50 basis points to 13.6%.

Incoming orders for the Flow Technologies segment were $78.5 million for the
third quarter of 2013, an increase of 22% year over year. Ending backlog
totaled $77.4 million, an increase of 9% compared with the same period last
year.

Aerospace

Aerospace segment revenues increased 15% to $36.5 million for the third
quarter of 2013.

Aerospace segment adjusted operating margin for the third quarter of 2013
increased 710 basis points to 11.3% from 4.2% in the third quarter of 2012.

Incoming orders for the third quarter of 2013 were $43.8 million, an increase
of 2% year over year. Ending backlog totaled $161.0 million, a decrease of 1%
year over year.

Conference Call Information

CIRCOR International will hold a conference call to review its financial
results today, October 31, 2013, at 10:00 a.m. ET. To listen to the conference
call and view the accompanying presentation slides, visit “Webcasts &
Presentations” in the “Investors” portion of the CIRCOR website. The call also
can be accessed by dialing (877) 407-5790 or (201) 689-8328. The webcast will
be archived for one year on the Company’s website.

Use of Non-GAAP Financial Measures

Adjusted 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 fourth-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             Nine Months Ended
                   September 29,   September 30,   September 29,   September
                   2013           2012            2013           30,
                                                                   2012
Net revenues       $  214,731      $  209,804      $  643,773      $ 643,946
Cost of revenues   144,593        151,109        443,679        462,823   
GROSS PROFIT       70,138          58,695          200,094         181,123
Selling, general
and                46,392          44,314          139,561         134,562
administrative
expenses
Impairment         —               10,348          —               10,348
charges
Special charges    (190        )   1,377          3,441          1,377     
/ (recoveries)
OPERATING INCOME   23,936         2,656          57,092         34,836    
Other (income)
expense:
Interest income    (67         )   (101        )   (189        )   (262      )
Interest expense   812             1,223           2,559           3,482
Other expense,     568            564            1,807          887       
net
TOTAL OTHER        1,313          1,686          4,177          4,107     
EXPENSE
INCOME BEFORE      22,623          970             52,915          30,729
INCOME TAXES
Provision
(benefit) for      4,903          (899        )   14,619         9,138     
income taxes
NET INCOME         $  17,720      $  1,869       $  38,296      $ 21,591  
Earnings per
common share:
Basic              $  1.01         $  0.11         $  2.18         $ 1.24
Diluted            $  1.00         $  0.11         $  2.18         $ 1.24
Weighted average
number of common
shares
outstanding:
Basic              17,582          17,433          17,553          17,391
Diluted            17,667          17,467          17,602          17,436
                                                                             


CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(UNAUDITED)

                                                Nine Months Ended
                                                 September 29,  September 30,
                                                 2013            2012
OPERATING ACTIVITIES                                           
Net income                                       $  38,296       $  21,591
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation                                     11,943          11,765
Amortization                                     2,273           2,823
Payment for Leslie bankruptcy settlement         —               (1,000     )
Impairment charges                               —               10,348
Compensation expense of share-based plans        3,343           3,409
Tax effect of share-based compensation           (536       )    573
(Gain) loss on property, plant and equipment     (70        )    1,148
Gain on return of acquisition purchase price     (3,400     )    —
Changes in operating assets and liabilities,
net of effects from business acquisitions:
Trade accounts receivable                        493             (123       )
Inventories                                      (33        )    8,586
Prepaid expenses and other assets                193             (2,110     )
Accounts payable, accrued expenses and other     1,259          (26,178    )
liabilities
Net cash provided by operating activities        53,761         30,832     
INVESTING ACTIVITIES
Additions to property, plant and equipment       (13,579    )    (14,097    )
Proceeds from the sale of property, plant and    348             200
equipment
Business acquisitions, return of purchase        3,400          —          
price
Net cash used in investing activities            (9,831     )    (13,897    )
FINANCING ACTIVITIES
Proceeds from long-term debt                     104,626         170,795
Payments of long-term debt                       (124,351   )    (192,040   )
Dividends paid                                   (2,011     )    (1,997     )
Proceeds from the exercise of stock options      1,843           348
Tax effect of share-based compensation           536            (573       )
Net cash used in financing activities            (19,357    )    (23,467    )
Effect of exchange rate changes on cash and      (27        )    653        
cash equivalents
INCREASE (DECREASE) IN CASH AND CASH             24,547          (5,879     )
EQUIVALENTS
Cash and cash equivalents at beginning of        61,738         54,855     
period
CASH AND CASH EQUIVALENTS AT END OF PERIOD       $  86,285      $  48,976  
                                                                            


CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(UNAUDITED)

                                                 September 29,  December 31,
                                                  2013            2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                         $  86,285       $  61,738
Short-term investments                            98              101
Trade accounts receivable, less allowance for     151,528         150,825
doubtful accounts
Inventories                                       198,454         198,005
Prepaid expenses and other current assets         18,185          16,510
Deferred income tax asset                         15,601          15,505
Assets held for sale                              480            542        
Total Current Assets                              470,631        443,226    
PROPERTY, PLANT AND EQUIPMENT, NET                107,415         105,903
OTHER ASSETS:
Goodwill                                          76,066          77,428
Intangibles, net                                  42,728          45,157
Deferred income tax asset                         22,600          30,064
Other assets                                      5,923          8,203      
TOTAL ASSETS                                      $  725,363     $  709,981 
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable                                  $  78,112       $  80,361
Accrued expenses and other current liabilities    59,674          67,235
Accrued compensation and benefits                 30,575          26,540
Income taxes payable                              2,610           393
Notes payable and current portion of long-term    6,667          7,755      
debt
Total Current Liabilities                         177,638        182,284    
LONG-TERM DEBT, NET OF CURRENT PORTION            43,250          62,729
DEFERRED INCOME TAXES                             10,037          10,744
OTHER NON-CURRENT LIABILITIES                     35,380          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; 17,590,312 and 17,445,687      176             174
shares issued and outstanding at September 29,
2013 and December 31, 2012, respectively
Additional paid-in capital                        267,562         262,744
Retained earnings                                 194,797         158,509
Accumulated other comprehensive loss, net of      (3,477      )   (3,180     )
taxes
Total Shareholders’ Equity                        459,058        418,247    
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY        $  725,363     $  709,981 
                                                                             


CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in millions)
UNAUDITED

                    Three Months Ended             Nine Months Ended
                     September       September       September       September
                     29,            30,             29,            30,
                     2013            2012            2013            2012
ORDERS (1)
Energy               $  101.0        $  118.1        $  318.4        $  382.0
Aerospace            43.8            42.9            112.9           111.6
Flow Technologies    78.5           64.5           218.9          207.8
Total orders         $  223.3       $  225.5       $  650.2       $  701.4
                                                                     
                     September       September
BACKLOG (2)          29,             30,
                     2013            2012
Energy               $  208.5        $  210.4
Aerospace            161.0           162.7
Flow Technologies    77.4           71.2      
Total backlog        $  446.9       $  444.3  
                                                                     
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       3RD QTR       TOTAL
NET REVENUES
Energy          $ 109,264      $ 113,527      $ 109,968      $ 96,582      $ 429,341      $ 96,722      $ 110,832      $ 108,473      $ 316,027
Aerospace       38,085         35,896         31,795         35,316        141,092        37,326        38,177         36,483         111,986
Flow            66,931        70,439        68,041        69,707       275,119       71,350       74,635        69,775        215,760   
Technologies
Total           214,280       219,862       209,804       201,605      845,552       205,398      223,644       214,731       643,773   
* ADJUSTED
OPERATING
MARGIN
Energy          8.2       %    11.1      %    14.0      %    12.5     %    11.4      %    11.1     %    13.8      %    17.1      %    14.1      %
Aerospace       10.8      %    8.8       %    4.2       %    3.5      %    7.0       %    3.5      %    8.6       %    11.3      %    7.8       %
Flow            11.3      %    12.8      %    13.1      %    13.1     %    12.6      %    12.7     %    14.8      %    13.6      %    13.7      %
Technologies
Segment
operating       9.6       %    11.3      %    12.2      %    11.1     %    11.1      %    10.3     %    13.2      %    15.0      %    12.9      %
margin
Corporate       (3.2      )%   (2.9      )%   (3.4      )%   (3.4     )%   (3.2      )%   (3.2     )%   (3.3      )%   (3.9      )%   (3.5      )%
expenses
* Adjusted
operating       6.4       %    8.4       %    8.8       %    7.8      %    7.8       %    7.1      %    10.0      %    11.1      %    9.4       %
margin
Restructuring
inventory       0.0       %    0.0       %    2.0       %    0.0      %    0.5       %    0.1      %    (0.1      )%   0.0       %    0.0       %
charges
Impairment      0.0       %    0.0       %    4.9       %    0.0      %    1.2       %    0.0      %    0.0       %    0.0       %    0.0       %
charges
Special         0.0       %    0.0       %    0.0       %    0.0      %    0.0       %    0.0      %    0.0       %    (1.5      )%   (0.5      )%
(Recoveries)
Special         0.0       %    0.0       %    0.7       %    1.9      %    0.6       %    0.7      %    1.0       %    1.4       %    1.0       %
charges
Total
operating       6.4       %    8.4       %    1.3       %    5.8      %    5.5       %    6.3      %    9.1       %    11.1      %    8.9       %
margin
                2012                                                                      2013
                1ST QTR        2ND QTR        3RD QTR        4TH QTR       TOTAL          1ST QTR       2ND QTR        3RD QTR        TOTAL
* ADJUSTED
OPERATING
INCOME
Energy          8,928          12,580         15,432         12,100        49,040         10,751        15,271         18,558         44,580
Aerospace       4,124          3,153          1,324          1,234         9,835          1,320         3,271          4,138          8,729
Flow            7,587         9,043         8,919         9,105        34,654        9,044        11,065        9,470         29,579    
Technologies
Segment
operating       20,639         24,776         25,675         22,439        93,529         21,115        29,607         32,166         82,888
income
Corporate       (6,939    )    (6,297    )    (7,170    )    (6,802   )    (27,207   )    (6,588   )    (7,339    )    (8,420    )    (22,346   )
expenses
* Adjusted
operating       13,700         18,479         18,505         15,637        66,322         14,528        22,268         23,746         60,542
income
Restructuring
inventory       —              —              4,124          37            4,161          250           (242      )    —              8
charges
Impairment      —              —              10,348         —             10,348         —             —              —              —
charges
Special         —              —              —              —             —              —             —              (3,151    )    (3,151    )
(Recoveries)
Special
charges /       —             —             1,377         3,905        5,282         1,378        2,254         2,961         6,592     
(recoveries)
Total
operating       13,700        18,479        2,656         11,695       46,531        12,900       20,256        23,936        57,093    
income
INTEREST        (1,081    )    (1,017    )    (1,122    )    (1,038   )    (4,258    )    (787     )    (838      )    (745      )    (2,370    )
EXPENSE, NET
OTHER           (138      )    (184      )    (564      )    373          (514      )    (612     )    (626      )    (568      )    (1,807    )
EXPENSE, NET
PRETAX INCOME   12,481         17,278         970            11,030        41,759         11,501        18,792         22,623         52,915
(PROVISION)
BENEFIT FOR     (3,896    )    (6,142    )    899           (1,822   )    (10,960   )    (3,592   )    (6,124    )    (4,903    )    (14,618   )
INCOME TAXES
EFFECTIVE TAX   31.2      %    35.5      %    (92.8     )%   16.5     %    26.2      %    31.2     %    32.6      %    21.7      %    27.6      %
RATE
NET INCOME      $ 8,585       $ 11,136      $ 1,869       $ 9,208      $ 30,799      $ 7,908      $ 12,668      $ 17,720      $ 38,296  
Weighted
Average
Common Shares   17,390         17,451         17,467         17,499        17,452         17,529        17,607         17,667         17,602
Outstanding
(Diluted)
EARNINGS PER
COMMON SHARE    $ 0.49        $ 0.64        $ 0.11        $ 0.53       $ 1.76        $ 0.45       $ 0.72        $ 1.00        $ 2.17    
(Diluted)
ADJUSTED        $ 18,534      $ 23,043      $ 22,809      $ 16,808     $ 81,194      $ 18,682     $ 26,419      $ 27,850      $ 72,949  
EBITDA
ADJUSTED
EBITDA AS A %   8.6       %    10.5      %    10.9      %    8.3      %    9.6       %    9.1      %    11.8      %    13.0      %    11.3      %
OF SALES
CAPITAL         $ 4,122       $ 6,661       $ 3,314       $ 4,073      $ 18,170      $ 4,707      $ 4,100       $ 4,772       $ 13,579  
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      3RD QTR      TOTAL
FREE CASH FLOW
[NET CASH FLOW
FROM OPERATING   $ (7,089  )   $ 5,077       $ 18,746      $ 25,619      $ 42,353      $ 1,100       $ 9,525       $ 29,557      $ 40,182
ACTIVITIES
LESS CAPITAL
EXPENDITURES]
ADD:
Capital           4,122       6,661       3,314       4,073       18,170      4,707       4,100       4,772       13,579  
Expenditures
NET CASH (USED
IN) PROVIDED     $ (2,967  )   $ 11,738     $ 22,060     $ 29,692     $ 60,523     $ 5,807      $ 13,625     $ 34,329     $ 53,761  
BY OPERATING
ACTIVITIES
NET DEBT /
(CASH) [TOTAL
DEBT LESS CASH
& CASH           $ 57,263      $ 54,376      $ 34,706      $ 8,645       $ 8,645       $ 8,814       $ (1,376  )   $ (36,466 )   $ (36,466 )
EQUIVALENTS
LESS
INVESTMENTS]
ADD:
Cash & Cash        41,291        41,414        48,976        61,738        61,738        57,633        60,831        86,285        86,285
Equivalents
Investments       101         98          102         101         101         99          96          98          98      
TOTAL DEBT       $ 98,655     $ 95,888     $ 83,784     $ 70,484     $ 70,484     $ 66,546     $ 59,551     $ 49,917     $ 49,917  
DEBT AS % OF       25      %     24      %     20      %     17      %     17      %     16      %     14      %     11      %     11      %
EQUITY
TOTAL DEBT        98,655      95,888      83,784      70,484      70,484      66,546      59,551      49,917      49,917  
TOTAL
SHAREHOLDERS'     399,018     397,957     409,016     418,247     418,247     418,819     432,151     459,058     459,058 
EQUITY
EBIT [NET
INCOME LESS
INCOME TAXES     $ 13,562      $ 18,295      $ 2,092       $ 12,068      $ 46,017      $ 12,287      $ 19,630      $ 23,368      $ 55,284
LESS INTEREST
EXPENSE, NET]
LESS:
Interest           (1,081  )     (1,017  )     (1,122  )     (1,038  )     (4,258  )     (787    )     (838    )     (745    )     (2,370  )
expense, net
(Provision)
benefit for       (3,896  )    (6,142  )    899         (1,822  )    (10,960 )    (3,592  )    (6,124  )    (4,903  )    (14,618 )
income taxes
NET INCOME       $ 8,585      $ 11,136     $ 1,869      $ 9,208      $ 30,799     $ 7,908      $ 12,668     $ 17,720     $ 38,296  
                 2012                                                                 2013                                                
                 1ST QTR       2ND QTR       3RD QTR       4TH QTR       TOTAL         1ST QTR       2ND QTR       3RD QTR       TOTAL
ADJUSTED
OPERATING
INCOME
[OPERATING
INCOME
EXCLUDING        $ 13,700      $ 18,479      $ 18,505      $ 15,600      $ 66,322      $ 14,528      $ 22,268      $ 23,746      $ 60,542
INVENTORY
RESTRUCTURING,
IMPAIRMENT AND
SPECIAL
CHARGES /
(RECOVERIES)]
LESS:
Inventory
restructuring      —             —             4,124         37            4,161         250           (242    )     —             8
charges
Impairment         —             —             10,348        —             10,348        —             —             —             —
charges
Special            —             —             —             —             —             —             —             (3,151  )     (3,151  )
(Recoveries)
Special           —           —           1,377       3,905       5,282       1,378       2,254       2,961       6,592   
charges
OPERATING        $ 13,700     $ 18,479     $ 2,656      $ 11,695     $ 46,531     $ 12,900     $ 20,256     $ 23,936     $ 57,093  
INCOME
ADJUSTED NET
INCOME [NET
INCOME
EXCLUDING
INVENTORY
RESTRUCTURING,   $ 8,585       $ 11,136      $ 12,171      $ 11,770      $ 43,663      $ 9,043       $ 14,044      $ 16,439      $ 39,526
IMPAIRMENT AND
SPECIAL
CHARGES /
(RECOVERIES),
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
(Recoveries),      —             —             —             —             —             —             —             (3,151  )     (3,151  )
net of tax
Special
charges, net      —           —           895         2,538       3,433       961         1,541       1,870       4,372   
of tax
NET INCOME       $ 8,585      $ 11,136     $ 1,869      $ 9,208      $ 30,799     $ 7,908      $ 12,668     $ 17,720     $ 38,296  
ADJUSTED
EARNINGS PER
SHARE [EPS
EXCLUDING
INVENTORY
RESTRUCTURING,   $ 0.49        $ 0.64        $ 0.76        $ 0.69        $ 2.59        $ 0.52        $ 0.81        $ 0.93        $ 2.26
IMPAIRMENT AND
SPECIAL
CHARGES /
(RECOVERIES),
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
(Recoveries),    $ —           $ —           $ —           $ —           $ —           $ —           $ —           $ (0.18   )   $ (0.18   )
net of tax
Special
charges, net     $ —          $ —          $ 0.06       $ 0.16       $ 0.22       $ 0.06       $ 0.10       $ 0.11       $ 0.27    
of tax
EARNINGS PER
COMMON SHARE     $ 0.49       $ 0.64       $ 0.11       $ 0.53       $ 1.76       $ 0.45       $ 0.72       $ 1.00       $ 2.17    
(Diluted)
                 2012                                                                 2013                                                
                 1ST QTR       2ND QTR       3RD QTR       4TH QTR       TOTAL         1ST QTR       2ND QTR       3RD QTR       TOTAL
EBITDA [NET
INCOME LESS
NET INTEREST
EXPENSE,         $ 18,534      $ 23,043      $ 2,092       $ 12,068      $ 65,345      $ 17,054      $ 24,407      $ 23,368      $ 69,500
DEPRECIATION,
AMORTIZATION
AND INCOME
TAXES]
LESS:
Interest           (1,081  )     (1,017  )     (1,122  )     (1,038  )     (4,258  )     (787    )     (838    )     (745    )     (2,370  )
expense, net
Depreciation       (4,008  )     (3,825  )     (3,932  )     (3,967  )     (15,732 )     (4,009  )     (4,026  )     (3,908  )     (11,943 )
Amortization       (964    )     (923    )     (936    )     (773    )     (3,596  )     (758    )     (751    )     (764    )     (2,273  )
(Provision)
benefit for       (3,896  )    (6,142  )    899         (1,822  )    (10,960 )    (3,592  )    (6,124  )    (4,903  )    (14,618 )
income taxes
NET INCOME       $ 8,585      $ 11,136     $ 1,869      $ 9,208      $ 30,799     $ 7,908      $ 12,668     $ 17,720     $ 38,296  
ADJUSTED
EBITDA [NET
INCOME
EXCLUDING
INVENTORY
RESTRUCTURING,
IMPAIRMENT AND
SPECIAL          $ 18,534      $ 23,043      $ 22,809      $ 20,750      $ 85,136      $ 18,682      $ 26,419      $ 27,850      $ 72,949
CHARGES /
(RECOVERIES),
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          $ —           $ —           $ —           $ —           $ —           $ —           $ —           $ 3,151       $ 3,151
Recoveries
Special          $ —           $ —           $ (1,377  )   $ (3,905  )   $ (5,282  )   $ (1,378  )   $ (2,254  )   $ (2,961  )   $ (6,592  )
charges
Interest         $ (1,081  )   $ (1,017  )   $ (1,122  )   $ (1,038  )   $ (4,258  )   $ (787    )   $ (838    )   $ (745    )   $ (2,370  )
expense, net
Depreciation     $ (4,008  )   $ (3,825  )   $ (3,932  )   $ (3,967  )   $ (15,732 )   $ (4,009  )   $ (4,026  )   $ (3,908  )   $ (11,943 )
Amortization     $ (964    )   $ (923    )   $ (936    )   $ (773    )   $ (3,596  )   $ (758    )   $ (751    )   $ (764    )   $ (2,273  )
(Provision) /
benefit for      $ (3,896  )   $ (6,142  )   $ 899        $ (1,822  )   $ (10,960 )   $ (3,592  )   $ (6,124  )   $ (4,903  )   $ (14,618 )
income taxes
NET INCOME       $ 8,585      $ 11,136     $ 1,869      $ 9,208      $ 30,799     $ 7,908      $ 12,668     $ 17,720     $ 38,296  
                                                                                                                                 


CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY
USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
UNAUDITED

                                                        4th Quarter 2013
                                                         Low        High
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING
INVENTORY RESTRUCTURING, IMPAIRMENT AND SPECIAL          $ 0.88      $ 0.95
CHARGES, NET OF TAX]
LESS: RESTRUCTURING RELATED CHARGES [INVENTORY
RESTRUCTURING CHARGES, IMPAIRMENT CHARGES, SPECIAL       $ (0.22 )   $ (0.19 )
CHARGES, NET OF TAX]
EXPECTED EARNINGS PER COMMON SHARE (Diluted)             $ 0.66     $ 0.76  

Contact:

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