CIRCOR International — Q2 2020 Earnings Presentation
15 slides from CIRCOR International's earnings presentation, Aug 7, 2020
Slide 1: Second Quarter 2020 Investor Review
INDUSTRIAL AEROSPACE & DEFENSE Second Quarter 2020 Investor Review August 7, 2020
Slide 2: Safe Harbor
Safe Harbor This press release contains certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (the “Act”). The words “may,” “hope,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predic
Slide 3: Q2 2020 Summary
Q2 2020 Summary Strong Quarter Despite Unprecedented Macro Challenges A more resilient business portfolio of essential products • Organic revenue and orders performance better than expected, down 14% and 16% respectively • Book to Bill ratio >1.0x with solid aftermarket orders from large global inst
Slide 4: Q2 2020 Highlights
Q2 2020 Highlights ($ millions) Orders -24 -2 -39 -9% -1% -16% 258 234 193 Q2 2019 Divestitures Q2 2019 FX Organic Q2 2020 Reported Continuing Ops* Reported Revenue -26 -3 -31 -11% -1% -14% 246 220 186 Q2 2019 Divestitures Q2 2019 FX Organic Q2 2020 Reported Continuing Ops* Reported Adjusted Operati
Slide 5: Industrial Segment Highlights
Industrial Segment Highlights ($ millions) Orders Comments on Organic YOY Results -24 -2 -22 Q2 2020 Orders -15% -1% -16% • Industrial markets soft due to COVID-19 165 140 116 • Ship building activity remains low • Lower consumer demand for plastics, fiber, textiles Q2 2019 Divestitures Q2 2019 FX O
Slide 6: Aerospace & Defense Segment Highlights
Aerospace & Defense Segment Highlights ($ millions) Orders Comments on Organic YOY Results 0 -16 Q2 2020 Orders 0% -18% • Lower due to timing of JSF defense order ($17M in 93 77 2019) and impact of COVID-19 on commercial aerospace partially offset by Virginia Class Submarine order of $9M Q2 2019 FX
Slide 7: Q2 P&L Selected Items
Q2 P&L Selected Items ($ millions, except EPS) Q2 2020 Q2 2019 GAAP Special Adjusted Adj Ex Div* GAAP Special Adjusted Adj Ex Div* Sales 186 - 186 186 246 - 246 220 Operating (loss) income (1) 17 16 16 12 17 29 23 Interest expense 8 - 8 13 - 13 Other income 2 - 2 0 - 0 Pre-tax (12) 17 5 (1) 17 15 Ta
Slide 8: Cash Flow and Debt Position
Cash Flow and Debt Position ($ millions) Q2 2020 Q2 2019 Cash Flow from Operations (25) 12 Capital Expenditures, net (3) (3) Free Cash Flow (28) 9 30-Jun-20 30-Jun-19 Total Debt 592 748 Cash and Cash Equivalents 125 76 Net Debt 467 672 $205 million Net Debt Reduction 8
Slide 9: CIRCOR End Market Exposure
CIRCOR End Market Exposure CIRCOR 2019 Revenue by End Market Comments Aerospace & Defense (5%) • Completed exit from Upstream Oil & Gas with divestiture of Distributed Valves Aftermarket Industrial (22%) 27% • Large global installed base driving higher margin Aftermarket orders, mitigating broader C
Slide 10: Industrial Outlook
Industrial Outlook Share of Outlook Comments Primary End Market 2019 Industrial Q3 2020 Q3 vs Prior Q2/Q3 Outlook Revenue Downstream 14% (30%) – (40%) • Refinery project delays continue Machinery Manufacturing 9% (15%) – (25%) • Ongoing OEM CapEx reduction/ delays Commercial Marine 8% (20%) – (35%)
Slide 11: A&D Outlook - Defense
A&D Outlook - Defense Share of Outlook Primary End Market Comments 2019 Revenue Q3 2020 Q3 vs Prior Q2/Q3 Outlook TOP PROGRAM Joint Strike Fighter (JSF) Virgina Class Sub DDG 51 28% ~0% Consistent with prior outlook Columbia Class Sub CVN Carrier Dreadnought Class Sub OTHER OEM Drone Missile Helicop
Slide 12: A&D Outlook - Commercial
A&D Outlook - Commercial Share of Outlook Primary End Market Comments 2019 Revenue Q3 2020 Q3 vs Prior Q2/Q3 Outlook BOEING / AIRBUS B737 A350 A320 Reduction from prior outlook driven by both 14% (45%) – (50%) A220 single aisle and twin aisle build rates A330 B767 OTHER OEM Bus Jet Civil Helicopter
Slide 13: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Within this presentation the Company uses non-GAAP financial measures, including Adjusted operating income, Adjusted operating margin, Adjusted net income, Adjusted earnings per share (diluted), EBITDA, Adjusted EBITDA, net debt, free cash flow and organic growth (
Slide 14: Appendix
RCOR ep) Appendix 14
Slide 15: Q2 Results
Q2 Results ($ millions, except EPS) Q2 2020 Q2 2019 GAAP Special Adjusted Adj Ex Div* GAAP Special Adjusted Adj Ex Div* Orders 193 - 193 193 258 - 258 234 Sales 186 - 186 186 246 - 246 220 Gross margin 59 5 64 64 82 5 87 78 SG&A 55 (7) 48 48 66 (8) 58 55 Special & restructuring income, net 6 (6) - -