CIRCOR International — Q3 2022 Earnings Presentation
21 slides from CIRCOR International's earnings presentation, Nov 14, 2022
Slide 1: Third-Quarter 2022 Earnings Call
INDUSTRIAL AEROSPACE & DEFENSE Third-Quarter 2022 Earnings Call November 14, 2022 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements that address expectations or projections about the future, including with respect to our ex
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Within this presentation, the Company uses the non-GAAP financial measures organic revenue, adjusted net income, adjusted EBITDA, adjusted operating income, adjusted operating margin, adjusted earnings per share, net debt and adjusted free cash flow. Non-GAAP finan
Slide 4: Agenda and Speakers
Agenda and Speakers • Executive Overview • 3Q’22 Financial Performance • FY’22 Guidance • Market Outlook • Q&A Tony Najjar President & Chief Executive Officer AJ Sharma Chief Financial Officer & SVP, Business Development 4
Slide 5: CEO Commentary
CEO Commentary 5 • People. Our teams demonstrated strong focus on execution and on our customers, and resilience delivering a great quarter, exceeding expectations. • Performance. We delivered 26% organic orders growth and 550 bps of margin expansion in the quarter, navigating ongoing supply chain a
Slide 6: Highlights
3Q’22 Highlights 6 • A&D organic orders +74% y/y • Industrial organic orders +8% y/y • Value pricing and cost-out delivering margin expansion • Backlog, orders and margin growth position us well for year end and into 2023 YOY 3Q ’22 Compare Organic orders +26% Backlog +14% Revenue +3% Organic revenu
Slide 7: Aerospace & Defense and Aftermarket Growth Initiatives
Aftermarket Pumps EMEA & APAC 7 Missile & Bomb Fuzing Switches and Brushless DC Motors Quick-response, severe environment, impact and acceleration switches for hypersonic missiles, bombs, and warhead arming Electric motors for missiles Control Actuation Systems Five new missile applications in vario
Slide 8: Financial Results Summary
3Q’22 Financial Results Summary CIRCOR 3Q’22 3Q’21 Change Backlog $497 $436 14% Orders 228 194 18% Organic % 26% Revenue 195 190 3% Organic % 10% GAAP operating income 42.6 3.5 1133% GAAP operating margin 21.8% 1.8% 2000 bps Adjusted operating income (AOI) 27.3 16.0 70% AOI% 14.0% 8.5% 550 bps GAAP
Slide 9: A&D Segment Highlights
3Q’22 A&D Segment Highlights 9 Aerospace & Defense 3Q’22 3Q’21 Change Backlog $214 $181 18% Orders 90 54 67% Organic % 74% Revenue 72 64 14% Organic % 18% AOI $16.9 $15.9 6% AOI% 23.4% 25.1% (170) bps Comments on 3Q’22 Results • Exceptional orders growth driven by defense aftermarket, missile progra
Slide 10: Industrial Segment Highlights
3Q’22 Industrial Segment Highlights Industrial 3Q’22 3Q’21 Change Backlog $283 $255 11% Orders 138 140 (1)% Organic % 8% Revenue 123 126 (2)% Organic % 6% AOI $15.7 $7.1 121% AOI% 12.8% 5.6% 720 bps 10 Comments on 3Q’22 Results • Organic orders growth across end markets and regions • Continued growt
Slide 11: Net Debt and Leverage
Net Debt and Leverage 11 Net Debt, Adjusted EBITDA and Compliance Adjusted EBITDA are non-GAAP measures. 1 – Net Debt defined as total debt (Term Loan B and revolvers) less cash or cash equivalents 2 – TTM defined as trailing twelve months 3 – Net Leverage is defined as calculated measure of net deb
Slide 12: FY'22 Guide
FY’22 Guide 12 CIRCOR FY’22 Prior Guidance Range FY’22 Current Guidance Range Change vs. FY’21 (Midpoint) Revenue $757 to $777 $772 to $780 Reported 2% Organic 9% AOI $70 to 78 $75 to 80 42% Adjusted EBITDA $89 to $98 $96 to $101 31% Interest Cost ~$(45) ~$(45) 39% Adjusted EPS $1.07 to $1.34 $1.37
Slide 13: FY'22 Market Outlook – Orders
FY’22 Market Outlook – Orders 13 Industrial Vs. PY Approximate Sales Mix (%) Growth Drivers General Industrial Power generation, midstream O&G, new business activities for lithium batteries manufacturing, aftermarket, and pricing Commercial Marine Strong aftermarket growth supported by pricing and i
Slide 14: 2023 Outlook
2023 Outlook • Ending 2022 with strong momentum - solid backlog • Industrial segment: • Leveraging strong aftermarket position and deploying value-based pricing • Focused on margin expansion and staying ahead of inflation in current macro-economic climate • A&D segment: • Benefitting from ongoing re
Slide 15: Appendix
INDUSTRIAL AEROSPACE & DEFENSE Appendix
Slide 16: Organic Orders and Revenue vs. PY
3Q’22 Organic Orders and Revenue vs. PY 16 Organic Revenue is a non-GAAP measure.
Slide 17: GAAP Operating (Loss) Income to Adjusted Operating Income
3Q’22 GAAP Operating (Loss) Income to Adjusted Operating Income 17
Slide 18: GAAP Net (Loss) Income to Adjusted EBITDA
3Q’22 GAAP Net (Loss) Income to Adjusted EBITDA 18
Slide 19: GAAP Net (Loss) Income to Adjusted Net Income
3Q’22 GAAP Net (Loss) Income to Adjusted Net Income 19
Slide 20: Net Cash from Operating Activities to Adjusted Free Cash Flow
3Q’22 Net Cash (Used In) Provided by Operating Activities to Adjusted Free Cash Flow 20
Slide 21: Reconciliation of Forward-Looking Non-GAAP Measures
Reconciliation of Forward-Looking Non-GAAP Measures 21 This presentation contains forward-looking estimates of organic revenue growth, AOI, adjusted EBITDA and adjusted EPS for full year 2022. We provide these non-GAAP measures to investors on a prospective basis for the same reasons (set forth on s