CIRCOR International — Q3 2019 Earnings Presentation
12 slides from CIRCOR International's earnings presentation, Nov 14, 2019
Slide 1: Third Quarter 2019 Investor Review
Energy Cc | R G oO R Aerospace & Defense Industrial Third Quarter 2019 Investor Review Presented November 6, 2019 (Updated November 13, 2019)
Slide 2: Safe Harbor
“N 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 invo
Slide 3: Q3 Results
“Nn Q3 Results Coreen ($ millions, except EPS) = Adjusted + Distributed GAAP _Adjusted*__AdjExDiv*_ __Valves* GAAP _Adjusted* _Adj Ex Div* Orders 2B 23 218 2 284 284 237 Sales 237 237 234 251 27 207 24 Gross Margin ” 79 9 7 20 86 78 SGBA @ 53 53 55 9 a 57 Special & Restructuring charges (recoveries)
Slide 4: Q3 2019 Highlights
Q3 2019 Highlights el (8 millions) Orders s 34 a) -2% -13% = 223, 287 218 03 2018 Reported 3 2019 Reported 03 2018 Fx Organic 93 2019 Continuing Ops Continuing Ops ex Divestitures ex Divestitures Revenue — — 7% 207 237 223 03 2018 Reported Q3 2019 Reported Fx Organic 03 2019 Continuing Ops ex Divest
Slide 5: Industrial Segment Highlights
ZN Industrial Segment Highlights Cee (8 millions) 115 32018 Reported 119 032018 Reported 15 12.3% 932018 Reported 106 32019 Reported 114 32019 Reported 14 12.3% 032019 Reported Orders Comments on YOY Results Q3 2019 Orders + Down primarily due to softness in large projects + OEM weakness in Europe o
Slide 6: Aerospace & Defense Segment Highlights
(8 millions) Q3 2019 Orders + Down due to timing of large orders in 2018 + YTD orders up 22% with book to bill ratio of over 1.25 82 3 2018 Reported K Organic 3.2019 Reported Revenue Q3 2019 Revenues —_ i” + Growth across all Commercial Aerospace and Defense 2% 19% businesses, most notably JSF 03 20
Slide 7: Energy Segment Highlights
“N Energy Segment Highlights Coes (8 millions) Orders Comments on YOY Results 9 13 2019 Orders 1% P se F : 87 ‘i 21% + Down mainly due to a difficult compare in Refinery 2 Valves vs. prior year 32018 032019 ame pu ‘Organic: 032019 + Order pipeline of Refinery Valves remains strong albeit Reported Re
Slide 8: Q3 P&L Selected Items
aN Q3 P&L Selected Items Coen (8 millions, except EPS) [er 2019 EE GAAP. Special _ Adjusted” GAAP, Special _ Adjusted” Orders 2B = 2 284 284 Sales 237 = 237 287 : 287 ‘Operating Income (9) 35 26 9 16 25 Interest Expense 2 E 2 “4 “4 Other income) expense ery : ery ey (2) Pre-tax (20) 35 6 Oy) 16 2 ‘T
Slide 9: Cash Flow and Debt Position
aN Cash Flow and Debt Position eae (S millions) Q3 2019 Q3 2018 Cash Flow from Operations 9 24 Capital Expenditures, net 1 (5) Free Cash Flow 10 19 Total Debt 659 807 Cash and Cash Equivalents 69 69 Net Debt 590 739 Note: Total debt is comprised of current and long-term debt, net of approximately $1
Slide 10: End Market Overview
End Market Overview Segment Trends Muted growth in global capital projects driving lower demand for machinery Strength in Asia, modest growth in N. America, weakness in Europe Energy efficiency initiatives driving equipment growth Strength in aftermarket globally Shipbuilding demand for merchant mar
Slide 11: Q4 2019 Guidance
5 CIRCOR Q4 2019 Guidance as of November 6, 2019 wv (millions, except per share amounts) Low High Net Revenue $9235 $ 248 Expected Adjusted Earnings Per Share $ 0.76 $ 0.88 Expected Special / Restructuring Charges per share: - Special & Restructuring Charges $(0.24) $(0.20) - Special Charges - M&A a
Slide 12: Use of Non-GAAP Financial Measures
“NX Use of Non-GAAP Financial Measures eaoei 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