CIRCOR International — Q3 2018 Earnings Presentation
15 slides from CIRCOR International's earnings presentation, Nov 5, 2018
Slide 1: Third Quarter 2018 Investor Review
Energy Gc ] R Cc O R Aerospace & Defense Industrial Third Quarter 2018 Investor Review Presented November 6, 2018
Slide 2: Safe Harbor
aan 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 in
Slide 3: Q3 2018 Results
Q3 2018 Results ($ millions, except EPS) Orders $307 Up 94% $158 Net Revenue EPS $298 Up 86% GAAP $0.52 $160 $0.43 $0.22 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2017 Q3 2018 [Organic 25% Organic 14% Acquisition 70% Acquisition 73% FX 0% FX 0% Total 94% Total 86% EPS: Diluted Earnings Per Share $(
Slide 4: Q3 2018 Orders - Year-over-Year Comparison
Q3 2018 Orders - Year-over-Year Comparison ZN CIRCOR Ww (S$ mil ions) 2017 Organic Acauisitions FX Total change 2018 2017 Organic Acquisitions FX Total change 2018 Reported $ % 158.1 394 25% 1104 70% (0.5) 0% 149.3 307.4 307.4 Industrial Aerospace & Defense (1) Pro Forma Combined reflects 2017 order
Slide 5: Q3 2018 Revenue - Year-over-Year Comparison
Q3 2018 Revenue - Year-over-Year Comparison ZN CIRCOR wY ($ millions) 2017 Organic Acquisitions FX Total change 2018 CIRCOR Pro Forma Reported e Combined $ % $ % 159.7 2743 218 14% 26.1 10% 1167 73% s - (07) 0% (29) -1% 1378 86% 23.2 8% 297.5 2975 Industrial Aerospace & Defense Beposiei Pro Forma Fo
Slide 6: Industrial Segment Highlights
“N CIRCOR Industrial Segment Highlights ww (8 millions) YOY Change | Pro Forma Pro Forma Net Revenues 118.7 30.0 115.6 88.7 Segment Operating Income 14.6 out 10.0 8.9 = Segment Operating Margin 12.3% 18.9% 8.7% -660 bp 360 bp Comments (YOY Pro Forma) + Q3 2018 revenues + Q3 2018 segment operating ma
Slide 7: Energy Segment Highlights
ZN i CIRCOR Energy Segment Highlights Tw, (8 millions) POY Change Pro Forma Pro Forma Net Revenues 1210 88.6 106.4 32.5 14.7 Segment Operating Income 9.2 6.9 8.7 OW) 05 Segment Operating Margin 76% 7.8% 8.2% -20 bp -60 bp Comments (YOY Pro Forma) + Q3 2018 segment operating margin * Q3 2018 revenues
Slide 8: Aerospace & Defense Segment Highlights
. . CIRCOR Aerospace & Defense Segment Highlights Tw, (8 millions) POY Change Pro Forma Pro Forma Net Revenues 57.8 411 52:3 16.6 Segment Operating Income 8.7 43 6:5 44 22 Segment Operating Margin 15.1% 10.5% 12.5% 460 bp 260 bp Comments (YOY Pro Forma) + Q3 2018 revenues + Q3 2018 segment operating
Slide 9: Q3 P&L Highlights
Q3 P&L Highlights 7N CIRCOR eA (8 millions, except EPS) Special & Special & | Reported Restructuring Reported Restructuring | GAAP Charges GAAP Charges! if Net Revenue 297.5 - 1597 «= it i t Operating (Loss) Income 82 162 69 50 | ! Net Interest (Expense) (14.1) - (24) = Other Income (Expense) 1.6 -
Slide 10: Cash Flow and Debt Position
ZN wa: IR R Cash Flow and Debt Position co = ($ millions) Cash Flow from Operations 24 (17) Capital Expenditures, net (5) (2) Free Cash Flow 19 (19) Total Debt 810 828 Cash and Cash Equivalents 71 69 Net Debt 739 759 Net Debt to Equity 129% 132% 10
Slide 11: Q4 Guidance as of November 6, 2018
VB Q4 Guidance as of November 6, 2018 ee ($ millions, except EPS) Q4 2018 Low High Net Revenue $ 295 $ 315 Expected Adjusted Earnings Per Share $ 0.53 $ 0.63 Expected Special / Restructuring Charges per share: - Restructuring Charges $(0.16) $(0.13) - Special Charges - M&A amortization related $(0.5
Slide 12: End Market Overview
End Market Overview Ww, Segment Trends Outlook = Continued strong demand for machinery and rotating equipment = Chemical processing strength in N. America and Asia = Global increase in wastewater construction and processing = Energy efficiency initiatives growth Industrial = = Shipbuilding demand fo
Slide 13: Use of Non-GAAP Financial Measures
ZN Use of Non-GAAP Financial Measures poe 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, organic grow
Slide 14: Appendix
APPENDIX
Slide 15: Group Structure
Group Structure ree CIRCOR by End Market ENERGY INDUSTRIAL A&D Other Distributed Valves Industrial EMEA (Pumps & Valves) Commercial Aerospace Refinery Valves Industrial Americas (Pumps & Valves) | Defense Instrumentation & Sampling Commercial Marine (Pumps) Engineered Valves Reliability Services n o