CIRCOR International — Q1 2019 Earnings Presentation
15 slides from CIRCOR International's earnings presentation, Apr 26, 2019
Slide 1: First Quarter 2019 Investor Review
Energy G I R G oO R Aerospace & Defense Industrial First Quarter 2019 Investor Review Presented April 26, 2019
Slide 2: Safe Harbor
ZN 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: Q1 Results
AN Q1 Results cen ($ millions, except EPS) Pata a1 2018 GAAP_ Adjusted* GAAP Adjusted* Adj Ex Div* Orders 280 276 326 326 304 Sales 270 267 276 276 257 Gross Margin 74 83 76 89 84 SG&A and special charges 66 62 90 69 64 Operating Income 8 20 (13) 20 20 Interest Expense 13 13 12 12 Other (income) exp
Slide 4: Q1 2019 Orders: Year-over-Year Comparison
“N Q1 2019 Orders: Year-over-Year Comparison oe ($ millions) Aerospace & $ % s % $ % 5 % Q1 2018 137 130 60 326 Divestitures (5) (17) - (22) Q1 2018 Ex Divestitures 132 113 60 304 Organic (1) -1% (48) -42% 30 499% (20) -7% FX (7) -5% (1) -1% (1) -2% (9) -3% Total change.ex (3) -6% (49) -43% 28 47% (
Slide 5: Q1 2019 Revenue: Year-over-Year Comparison
Q1 2019 Revenue: Year-over-Year Comparison AN CIRCOR eA ($ millions) Aerospace & $ % $ % $ % $ % Qi 2018 ity 100 58 276 Divestitures (4) (15) - (19) Q1 2018 Ex Divestitures 113 85 58 257 Organic 4 3% 12 14% 4 7% 20 8% FX (6) -6% (2) -2% (1) -2% (10) -4% peerage (2) -2% 10 12% 3 5% 10 4% Divestitures
Slide 6: Industrial Segment Highlights
Industrial Segment Highlights ey ($ millions) 2018 uy ange Q1 2019 Orders + FX Headwind: -$7 (5%) Orders 124 137 -9% * Organic Growth: -$1 (1%) Continuing 124 132 6% + Year-over-year orders were largely flat to a strong Q1 F 2018, when we saw orders grow 19% on a pro forma Divested : 5 ‘ : organic b
Slide 7: Energy Segment Highlights
Energy Segment Highlights (8 millions) ay: Orders 68 130 48% Continuing 64 113 -44% Divested 4 17 Net Revenues 98 100 -2% Continuing 95 85 12% Divested 3 15 Segment Operating 7 6 19% Income Continuing rs 6 19% Divested Segment Operating Margin Continuing 7.1% 6.7% 40 bps Numbers may not add due to r
Slide 8: Aerospace & Defense Segment Highlights
CIRCOR Aerospace & Defense Segment Highlights we, (8 millions) Orders Net Revenues Segment Operating Income Segment Operating Margin Numbers may not add due to rounding, 88 61 15.3% 60 58 15.3% 47% 5% 5% Obps Q1 2019 Orders + FX Headwind: -$1 (2%) * Organic Growth: $30 +49% + Driven by large Defense
Slide 9: Q1 P&L Selected Items
aN Q1 P&L Selected Items oo (8 millions, except EPS) [ Q1 2019 Q1 2018 | GAAP _Divested _ Special Adjusted GAAP Special Adjusted Adj Ex Div Orders 280 4 - 276 326 - 326 304 Sales 270 3 - 267 276 - 276 257 Operating Income 8 - 12 20 (13) 33 20 20 Operating Income % 2.9% 7.6% 4.9% 7.2% 7.7% Interest E
Slide 10: Cash Flow and Debt Position
ZN Cash Flow and Debt Position coe (8 millions) ai 2019 ar 2018 Cash Flow from Operations (22) - Capital Expenditures, net (4) (8) Free Cash Flow (26) (8) } 31-Mar-19 31-Dec-18 734 786 Total Debt Cash and Cash Equivalents 74 68 Net Debt 660 718 Net Debt to Equity 136% Note: Total debt is comprised o
Slide 11: End Market Overview
End Market Overview AN CIRCOR Segment Trends Industrial Continued growth in global capital spending driving demand for machinery Chemical processing strength in N. America and Asia Energy efficiency initiatives driving equipment growth On going strength in N. America and Asia, pockets of weakness in
Slide 12: Q2 2019 Guidance as of April 26, 2019
ZN Q2 2019 Guidance as of April 26, 2019 oe (millions, except per share amounts) Low High Net Revenue $ 270 $ 280 Expected Adjusted Earnings Per Share $ 0.40 $ 0.48 Expected Special / Restructuring Charges per share: - Special & Restructuring Gains (Charges) $ (0.04) $ (0.02) - Special Charges - M&A
Slide 13: Use of Non-GAAP Financial Measures
ZN Use of Non-GAAP Financial Measures aha 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 and organic g
Slide 14: Appendix
RCOR oD) APPENDIX
Slide 15: Group Structure
Group Structure Product Lines ENERGY Up/Midstream Downstream Distributed Valves Refinery Valves Instrumentation & Sampling Engineered Valves CIRCOR by End Market INDUSTRIAL Industrial Industrial EMEA (Pumps & Valves) Industrial Americas (Pumps & Valves) Commercial Marine (Pumps) A&D ; Defense Commer