CIRCOR International — Q2 2019 Earnings Presentation
15 slides from CIRCOR International's earnings presentation, Aug 1, 2019
Slide 1: Second Quarter 2019 Investor Review
Energy C | R C oO R Aerospace & Defense Industrial Second Quarter 2019 Investor Review Presented August 1, 2019
Slide 2: Safe Harbor
ZN Safe Harbor ey RCOR This presentation contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933, as amended, and Section 24 E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking statements because they inv
Slide 3: Q2 Results
A Q2 Results Eneen ($ millions, except EPS) GAAP_ Adjusted* GAAP Adjusted* Adj Ex Div* Orders 276 276 309 309 286 Sales 270 270 301 301 282 Gross Margin 79 85 88 95) 88 SG&A and special charges 74 62 80 70 65 Operating Income 4 24 8 25 23 Interest Expense ds As 14 14 Other (income) expense (o) (o) (
Slide 4: Q2 2019 Orders: Year-over-Year Comparison
Q2 2019 Orders: Year-over-Year Comparison ($ millions) Aerospace & Defense CIRCOR : % $ % Q2 2018 136.7 309.4 Divestitures * (4.5) (22.9) 2018 Ex Divesitures * 132.3 286.5 Organic (6.9) 5% (31.4) -33% 35.0 59% (3.3) 1% FX (4.7) 4% (1.2) 1% (1.0) -2% (6.9) 2% Total change ex Divestitures* (11.6) -9%
Slide 5: Q2 2019 Revenue: Year-over-Year Comparison
ZA Q2 2019 Revenue: Year-over-Year Comparison Cees (8 millions) Aerospace & Defense CIRCOR $ % $ % $ %o $ %o Q2 2018 131.1 112.8 575 301.4 Divestitures * (15) (17.4) - (18.9) 2018 Ex Divesitures * 129.6 95.4 57.5 282.5 Organic (8.4) ~4% 7) -9% 82 14% (6.0) 2% FX (48) ~4% (1.1) 1% (1.0) -2% (6.9) 2%
Slide 6: Industrial Segment Highlights
ZN Industrial Segment Highlights cere ($ millions) Change + FX Headwind: -$5 (-4%) + Organic Growth: -$7 (-4%) Orders 121 137 -12% - - down duet i a ‘ + Year-over-year orders were down due to a softening aldol vt 2 am market in Europe partially offset by solid demand in esi ~ ? North America and aft
Slide 7: Energy Segment Highlights
Energy Segment Highlights ($ millions) Pe Rests (comments of YOY Results 22 2019] Sym 2 2019 Orders Change + FX Headwind: -$1 (-1%) + Organic Growth: -$31 (-33%) Orders ez a ae + Down year-over-year, primarily due to Upstream Oil & Continuing 62 95 34% Gas and project timing in Refinery Valves Dives
Slide 8: Aerospace & Defense Segment Highlights
ZA Aerospace & Defense Segment Highlights on ($ millions) YOY Q2 2019 Orders + Organic Growth: $35 +59% Orders 93 59 57% + Driven by large Defense orders and continued strength across Commercial platforms Net Revenues 65 58 13% Q2 2019 Revenues Segment Operating Income 10 7 49% + FX Headwind: -$1 (2
Slide 9: Q2 P&L Selected Items
Q2 P&L Selected Items Z-Y CIRCOR UL ($ millions, except EPS) Q2 2019 Q2 2018 GAAP Special Adjusted * GAAP Special Adjusted * Adj Ex Div * Orders 276 - 276 309 - 309 286 Sales 270 - 270 301 - 301 282 Operating Income 4 19 24 8 7 2 2B Operating Income % 15% 8.7% 2.7% 8.2% 8.2% Interest Expense 2B - B
Slide 10: Cash Flow and Debt Position
Cash Flow and Debt Position ZN CIRCOR eA ($ millions) Cash Flow from Operations Capital Expenditures, net Free Cash Flow Total Debt Cash and Cash Equivalents Net Debt Net Debt to Equity | 02 2019 02.2018 12 (0) (3) (4) 9 (4) 729 786 76 69 653 748 133% 136%
Slide 11: End Market Overview
ZN End Market Overview aii Segment Trends Outlook Continued growth in global capital spending driving demand for machinery Chemical processing strength in N. America and Asia Energy efficiency initiatives driving equipment growth Growth in N. America and Asia, weakness in Europe Industrial Shipbuild
Slide 12: Q3 2019 Guidance as of August 1, 2019
Q3 2019 Guidance as of August 1, 2019 Tw (millions, except per share amounts) Q3 2019 Low High Net Revenue $ 250 $ 260 Expected Adjusted Earnings Per Share $ 0.52 $ 0.60 Expected Special / Restructuring Charges per share: - Special & Restructuring Charges $(2.18) $(1.96) - Special Charges - M&A amor
Slide 13: Use of Non-GAAP Financial Measures
ZN Use of Non-GAAP Financial Measures creer 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 low and organic
Slide 14: Appendix
RCOR O a) APPENDIX
Slide 15: Group Structure
IRCOR Group Structure cl ss CIRCOR by End Market ENERGY INDUSTRIAL A&D Marine Sales Mix Product Lines Up/Midstream| Downstream Distributed Valves Refinery Valves Instrumentation & Sampling Industrial EMEA (Pumps & Valves) Industrial Americas (Pumps & Valves) Commercial Marine (Pumps) Commercial Aero