CIRCOR International — Q4 2019 Earnings Presentation
14 slides from CIRCOR International's earnings presentation, Mar 2, 2020
Slide 1: Fourth Quarter 2019 Investor Review
Energy C¢ | R C oO R Aerospace & Defense Industrial Fourth Quarter 2019 Investor Review Presented March 2, 2020
Slide 2: Safe Harbor
AON Safe Harbor CIRCOR This presentation contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking statements because they inv
Slide 3: Q4 Results
tN Q4 Results e/RCOR ($ millions, except EPS) Q4 2019 Q4 201 GAAP Adjusted* GAAP Adjusted* _Adj Ex Div* Orders 237 237 271 m7 244 Sales 203 243 267 267 240 Gross Margin 8 83 90 96 87 SG&A 58 51 B 65 60 Special & Restructuring Charges 3 : 7 : : Operating Income wv 32 10 31 27 Interest Expense 1 1 13
Slide 4: Q4 2019 Highlights
Q4 2019 Highlights ($ millions) Orders a —— 7 J 40% oe an as 2018 Divestitures a4 2018 Fx Organic Reported Continuing Ops * Revenue 5 2% 267 a4 2018 Divestitures a4zo1e Fx Organic Reported Continuing Ops’ Adjusted Operating Income " a — Zi” 42% 2 21% rT 2 11.6% KEES a4 2018 Divestitures 42018 Fx Org
Slide 5: CIRCOR Delivered on its Strategic Priorities
CIRCOR Delivered on its Strategic Priorities ZN CIRCOR Y 2019 Priorities A&D: Accelerating Growth With Further Margin Expansion Industrial: Driving Integration Synergies and Investing in Growth Energy: Further Repositioning Prudent Portfolio Management Disciplined Investment in Growth Enhancing Oper
Slide 6: CIRCOR Delivered on its 2019 Financial Commitments and is on Track for 2020 goals
CIRCOR Delivered on its 2019 Financial Commitments ciRcorR and is on Track for 2020 goals Met 2019 Commitments On Track for 2020 2019E 2019E Commitment 2019 2020E Commitment Adjusted for Reported Commitment?) Divestitures“ Adj. EBITDA 128.0 123.5 123.5 139 Margin 11.8% 12.0% 12.1% ~15% Net 4.6x Leve
Slide 7: Industrial Segment Highlights
Industrial Segment Highlights ey (8 millions) Orders Comments o1 Results ‘gani Q4 2019 Orders + Down primarily due to large project delays + OEM weakness globally + Partially offset by strong global growth in aftermarket or 042018 Divestitures. 42018 Fx Organic 42019 Reported Continuing Ops* Reporte
Slide 8: Aerospace & Defense Segment Highlights
ZN Aerospace & Defense Segment Highlights neon (8 millions) Orders Comments on Organic YOY Results o Q4 2019 Orders A% Sa 10% + Down due to timing of large orders in 2018 ue + Full year orders up 15% with book to bill ratio of over 1.15 (04 2018 Reported Fx Organic 04 2019 Reported Revenue Q4 2019 R
Slide 9: Energy Segment Highlights
Energy Segment Highlights AN CIRCOR UY ($ millions) Orders a | 042018 Divestitwes 42018 Organic Reported Continuing Ops" Revenue o 0% =z 14% 242018 Divestitues 4.2018 x Organic Reported Continuing Ops* Adjusted Operating Income Eel J 0% 3 35% 15.4% 942018 Reported Divestitures 042018 x Organic Conti
Slide 10: Q4 P&L Selected Items
aN Q4 P&L Selected Items Cee ($ millions, except EPS) 42019 42018 GAAP___Special__Adjusted* GAAP___Special_Adjusted* _ Adj Ex Div* Orders 27 = 27 mA = mm ry sales 243 - 243 267 - 267 240 Operating Income a7 15 32 10 a 31 a Interest Expense nu - nu B - B Other(income) expense u : 2 (0) = 0) Pre-tax 4
Slide 11: Cash Flow and Debt Position
a Cash Flow and Debt Position ai (S millions) Q4 2019 Q4 2018 Cash Flow from Operations 17 34 Capital Expenditures, net 2 (7) Free Cash Flow 18 24 | 31-Dec-19 | Total Debt 654 807 Cash and Cash Equivalents 85 69 Net Debt 569 739
Slide 12: End Market Overview
End Market Overview Segment Trends Muted growth in global capital projects Softness in N. America, APAC, Europe and China Strength in aftermarket globally Commercial Marine Shipbuilding demand for merchant marine remains flat Off-shore vessels build rate very low Expanded global fleet aging, increas
Slide 13: Q1 2020 Guidance as of March 2, 2020
EN, ss CIRCOR Q1 2020 Guidance as of March 2, 2020 co (millions, except per share amounts) Low High Net Revenue $ 190 $ 205 Expected Adjusted Earnings Per Share $ 0.50 $ 0.60 Expected Special / Restructuring Charges per share: - Special & Restructuring Charges $ (0.27) $(0.17) - Special Charges - M&
Slide 14: Use of Non-GAAP Financial Measures
AN Use of Non-GAAP Financial Measures Rear Within this presentation the Company uses non-GAAP financial measures, including Adjusted operating income, Adjusted operating margin, Adjusted net income, Adusted earings per share (diluted), EBITDA, Adjusted EBITDA, net debt, free cash flow and organic gr