CIRCOR International — Q2 2018 Earnings Presentation
15 slides from CIRCOR International's earnings presentation, Jul 26, 2018
Slide 1: Second Quarter 2018 Investor Review
Energy co l R Cc O R Aerospace & Defense Industrial Second Quarter 2018 Investor Review Presented July 27, 2018
Slide 2: Safe Harbor
LN Safe Harbor ome 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 involv
Slide 3: Q2 2018 Results
Q2 2018 Results we (S$ millions, except EPS) Orders Net Revenue EPS 309 504 GAAP Adjusted* Up Up 116% $0.54 $0.57 143 fat $0.39 ; i Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 (Organic 18% Organic 11% Acquisition 96% Acquisition 86% FX 3% FX 2% Total 116% Total 99% EPS: Diluted E
Slide 4: Q2 2018 Orders
Q2 2018 Orders (8 millions) Year-over-Year Comparison Industrial | Energy si Aerospace & Defense Pro Fi Pro Fi Pro Fi Reported coe Reported wae Reported ane Combined Combined Combined $ % $ % $ % $ % $ % $ % 2017 299 1214 73.4 90.0 39.9 497 Organic 33° 11% 98 8% 195 27% 214 24% 28 7% 87 17% Acquisit
Slide 5: Q2 2018 Revenue
a Q2 2018 Revenue — (8 millions) Year-over-Year Comparison Pe industrial Aerospace & Defense Reported Pro rome Reported Fe roe Reported Pre roe Combined Combined. Combined $ % $ % $ % $ WA $ % $ % 2017 29.7 113.0 78.3 96.0 43.3 60.3 Organic (0.2) 1% 13.0 12% 15.8 20% 15.8 16% 1.3 3% (3.9) T% Acquisi
Slide 6: Industrial Segment Highlights
: : : CIRCOR Industrial Segment Highlights ww, ($ millions) Pro Forma Pro Forma 2018 Reported A Reported Net Revenues 131.1 29.7 113.0 101.4 18.1 Segment Operating Income 15:0 49 12.6 10.1 24 Segment Operating Margin 11.5% 16.5% 11.2% -500 bps 30 bps Comments (YOY Pro Forma) + Q2 2018 revenues + Q2
Slide 7: Energy Segment Highlights
a Energy Segment Highlights URCOR ($ millions) Pro Forma Pro Forma Net Revenues 112.8 78.3 96.0 34.5 16.8 Segment Operating Income 9:2. 8.2 9.2 11 - Segment Operating Margin 8.2% 10.4% 9.6% -220 bps -140 bps Comments (YOY Pro Forma) + Q2 2018 revenues + Q2 2018 segment operating margin — Distributed
Slide 8: Aerospace & Defense Segment Highlights
Aerospace & Defense Segment Highlights we ($ millions) Pro Forma 12 2018 Reported a Net Revenues Ye) 43.3 60.3 14.2 (2.8) Segment Operating Income 7.0 44 8.0 2.6 (1.0) Segment Operating Margin 12.2% 10.1% 13.3% 210 bps -110 bps Comments (YOY Pro Forma) + Q2 2018 revenues + Q2 2018 segment operating
Slide 9: Q2 P&L Highlights
Q2 P&L Highlights on (S millions, except EPS) Special & Special & Reported Restructuring Reported Restructuring GAAP Charges GAAP Charges Net Revenue 301.4 - Operating income 83 166 Net Interest (Expense) (13.8) - Other Income (Expense) 38 = Pre-Tax (Loss) Income (7) 166 Benefit from (provision for)
Slide 10: Cash Flow and Debt Position
Cash Flow and Debt Position Ww (8 millions) Q2 2018 Q2 2017 Cash Flow from Operations (2) 3 Capital Expenditures, net (4) (2) Free Cash Flow (6) 0 Total Debt 828 824 Cash and Cash Equivalents 69 68 Net Debt 759 756 Net Debt to Equity 132% 128% Note: Cash and cash equivalents at April 1, 2018 exclude
Slide 11: Q3 Guidance as of July 27, 2018
ZN . CIRCOR Q3 Guidance as of July 27, 2018 ww ($ millions, except EPS) Q3 2018 Low High Net Revenue $ 290 $ 300 Expected Adjusted Earnings Per Share $ 0.45 $ 0.55 Expected Special / Restructuring Charges per share: - Special Charges - M&A amortization related $(0.54) $(0.52) - Restructuring Charges
Slide 12: End Market Overview
End Market Overview Segment Trends Industrial 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 Commercial Marine Shipbuilding demand showing
Slide 13: Use of Non-GAAP Financial Measures
ZN Use of Non-GAAP Financial Measures CUReGR 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 g
Slide 14: Appendix
RCOR sp) APPENDIX
Slide 15: Group Structure
Group Structure Uc CIRCOR by End Market ENERGY INDUSTRIAL A&D Other Other Distributed Valves Industrial EMEA (Pumps & Valves) Commercial Aerospace Refinery Valves Industrial Americas (Pumps & Valves) | Defense Instrumentation & Sampling Commercial Marine (Pumps) Engineered Valves Reliability Service