($ millions except EPS) | April 3, 2022 | As Restated April 4, 2021 | Change | |||
Orders | 221.6 | 226.7 | -2 | % | ||
Orders excluding Pipeline Engineering1
| 219.4 | 221.2 | -1 | % | ||
Revenue | $ | 185.7 | $ | 176.5 | 5 | % |
Revenue excluding Pipeline Engineering1
| 182.6 | 173.5 | 5 | % | ||
GAAP operating (loss) income | (11.8) | (5.3) | -124 | % | ||
Adjusted operating income2
| 10.4 | 6.8 | 53 | % | ||
Adjusted operating income excluding Pipeline Engineering1,2
| 13.6 | 9.3 | 47 | % | ||
GAAP operating margin | -6.3 | % | -3.0 | % | -330 bps | |
Adjusted operating margin2
| 5.6 | % | 3.8 | % | 180 bps | |
Adjusted operating margin excluding Pipeline Engineering1,2
| 7.4 | % | 5.3 | % | 210 bps | |
GAAP (loss) per share | $ | (1.06) | $ | (0.59) | -81 | % |
Adjusted earnings per share (diluted)2
| $ | 0.05 | $ | 0.02 | 150 | % |
Operating cash flow | (15.9) | (19.2) | 17 | % | ||
Free cash flow3
| (19.5) | (22.6) | 14 | % | ||
($ in millions) | April 3, 2022 | As Restated April 4, 2021 | Change | |||
Aerospace & Defense | ||||||
Orders | $ | 77.9 | $ | 73.0 | 7 | % |
Revenue | 63.4 | 58.5 | 8 | % | ||
Segment operating income | 11.3 | 10.0 | 13 | % | ||
Segment operating margin | 17.9 | % | 17.1 | % | 80 bps | |
Industrial | ||||||
Orders | $ | 143.7 | $ | 153.7 | -7 | % |
Orders - excluding Pipeline Engineering1
| 141.5 | 148.2 | -5 | % | ||
Revenue | 122.3 | 118.0 | 4 | % | ||
Revenue - excluding Pipeline Engineering1
| $ | 119.3 | $ | 115.0 | 4 | % |
Segment operating income | 6.9 | 5.8 | 18 | % | ||
Segment operating income excluding Pipeline Engineering | 10.0 | 8.3 | 20 | % | ||
Segment operating margin | 5.6 | % | 4.9 | % | 70 bps | |
Segment operating margin (adjusted) | 8.4 | % | 7.2 | % | 120 bps |
Three Months Ended | ||||
April 3, 2022 | As Restated April 4, 2021 | |||
Net revenues | $ | 185,655 | $ | 176,451 |
Cost of revenues | 130,372 | 124,889 | ||
Gross profit | 55,283 | 51,562 | ||
Selling, general and administrative expenses | 58,069 | 57,637 | ||
Special and restructuring charges (recoveries), net | 9,003 | (809) | ||
Operating (loss) | (11,789) | (5,266) | ||
Other expense (income): | ||||
Interest expense, net | 9,456 | 8,369 | ||
Other (income) expense | (1,287) | (1,781) | ||
Total other expense, net | 8,169 | 6,588 | ||
(Loss) from continuing operations before income taxes | (19,958) | (11,854) | ||
Provision for (benefit from) income taxes | 1,523 | (297) | ||
(Loss) from continuing operations, net of tax | $ | (21,481) | $ | (11,557) |
(Loss) from discontinued operations, net of tax | $ | - | $ | (239) |
Net (loss) | $ | (21,481) | $ | (11,796) |
Basic (loss) per common share: | ||||
Basic from continuing operations | $ | (1.06) | $ | (0.58) |
Basic from discontinued operations | $ | - | $ | (0.01) |
Net (loss) | $ | (1.06) | $ | (0.59) |
Diluted (loss) per common share: | ||||
Diluted from continuing operations | $ | (1.06) | $ | (0.58) |
Diluted from discontinued operations | $ | - | $ | (0.01) |
Net (loss) | $ | (1.06) | $ | (0.59) |
Weighted average common shares outstanding: | ||||
Basic | 20,310 | 20,054 | ||
Diluted | 20,310 | 20,054 |
Three Months Ended | ||||
April 3, 2022 | As Restated April 4, 2021 | |||
OPERATING ACTIVITIES | ||||
Net (loss) | $ | (21,481) | $ | (11,796) |
Income (loss) from discontinued operations, net of income taxes | - | (239) | ||
(Loss) from continuing operations, net of tax | (21,481) | (11,557) | ||
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation | 5,000 | 6,509 | ||
Amortization | 9,397 | 10,696 | ||
Change in provision for bad debt expense | (89) | (465) | ||
Write down of inventory | 439 | 188 | ||
Compensation expense of share-based plans | (84) | 1,402 | ||
Amortization of debt issuance costs | 514 | 995 | ||
Deferred tax provision | - | (1,011) | ||
(Gain) on sale of businesses | - | (1,947) | ||
Other impairment charges | 8,011 | - | ||
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||||
Trade accounts receivable | 4,242 | (3,707) | ||
Inventories | (15,465) | (8,255) | ||
Prepaid expenses and other assets | (5,671) | (8,875) | ||
Accounts payable, accrued expenses and other liabilities | (737) | (2,547) | ||
Net cash used in continuing operations activities | (15,924) | (18,574) | ||
Net cash used in discontinued operations activities | - | (636) | ||
Net cash (used in) operating activities | (15,924) | (19,210) | ||
INVESTING ACTIVITIES | ||||
Additions of property, plant and equipment | (3,607) | (3,394) | ||
Proceeds from the sale of property, plant and equipment | 15 | 2 | ||
Proceeds from beneficial interest of factored receivables | 927 | 812 | ||
Proceeds from sale of business | - | 7,193 | ||
Net cash (used in) provided by investing activities | (2,665) | 4,613 | ||
FINANCING ACTIVITIES | ||||
Proceeds from long-term debt | 51,325 | 63,500 | ||
Payments of long-term debt | (30,875) | (46,500) | ||
Net Change in short-term borrowings | 925 | (22) | ||
Proceeds from the exercise of stock options | - | 151 | ||
Withholding tax payments on net share settlements on equity rewards | (821) | (3,274) | ||
Net cash used in financing activities | 20,554 | 13,855 | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (712) | (1,615) | ||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,253 | (2,357) | ||
Cash, cash equivalents and restricted cash at beginning of period | 61,374 | 68,607 | ||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ | 62,627 | $ | 66,250 |
April 3, 2022 | December 31, 2021 | |||
ASSETS | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ | 61,122 | $ | 59,924 |
Trade accounts receivable, net | 95,638 | 100,149 | ||
Inventories | 134,540 | 123,343 | ||
Prepaid expenses and other current assets | 113,162 | 110,749 | ||
Total Current Assets | 404,462 | 394,165 | ||
PROPERTY, PLANT AND EQUIPMENT, NET | 150,546 | 154,461 | ||
OTHER ASSETS: | ||||
Goodwill | 122,256 | 122,906 | ||
Intangibles, net | 290,335 | 303,476 | ||
Deferred income taxes | 764 | 756 | ||
Other assets | 43,275 | 43,534 | ||
TOTAL ASSETS | $ | 1,011,638 | $ | 1,019,298 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Accounts payable | $ | 83,134 | $ | 83,382 |
Accrued expenses and other current liabilities | 75,711 | 81,998 | ||
Accrued compensation and benefits | 30,560 | 26,551 | ||
Short-term borrowings and current portion of long-term debt | 2,531 | 1,611 | ||
Total Current Liabilities | 191,936 | 193,542 | ||
LONG-TERM DEBT | 532,580 | 511,694 | ||
DEFERRED INCOME TAXES | 21,283 | 21,721 | ||
PENSION LIABILITY, NET | 119,170 | 120,881 | ||
OTHER NON-CURRENT LIABILITIES | 36,348 | 37,744 | ||
SHAREHOLDERS' EQUITY: | ||||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding | - | - | ||
Common stock, $0.01 par value; 29,000,000 shares authorized; 21,683,147 and 21,633,131 shares issued at April 3, 2022 and December 31, 2021 respectively
| 217 | 217 | ||
Additional paid-in capital | 454,269 | 454,852 | ||
Accumulated deficit | (219,562) | (198,081) | ||
Common treasury stock, at cost (1,372,488 shares at April 3, 2022 and December 31, 2021) | (74,472) | (74,472) | ||
Accumulated other comprehensive loss, net of tax | (50,131) | (48,800) | ||
Total Shareholders' Equity | 110,321 | 133,716 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,011,638 | $ | 1,019,298 |
Three Months Ended | ||||
April 3, 2022 | As Restated April 4, 2021 | |||
ORDERS (1) | ||||
Aerospace & Defense | $ | 77.9 | $ | 73.0 |
Industrial | 143.7 | 153.7 | ||
Total Orders | $ | 221.6 | $ | 226.7 |
April 3, 2022 | As Restated April 4, 2021 | |||
BACKLOG (2) | ||||
Aerospace & Defense | $ | 199.7 | $ | 198.2 |
Industrial | 276.8 | 226.4 | ||
Total Backlog | $ | 476.5 | $ | 424.6 |
Note 1: Orders do not include the foreign exchange impact due to the re-measurement of customer backlog amounts denominated in foreign currencies. Industrial includes $2.3 million and $5.5 million orders in Pipeline Engineering for 2022 and 2021 respectively. | ||||
Note 2: Backlog is calculated as current period orders plus unshipped customer orders from prior periods for which revenue has not been recognized. Industrial includes $1.2 million in Pipeline Engineering for 2021. |
2021 As Restated | 2022 | |||||||||||
As reported | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | ||||||
ORDERS | ||||||||||||
Aerospace & Defense | $ | 72,999 | $ | 54,243 | $ | 54,028 | $ | 73,898 | $ | 255,168 | $ | 77,890 |
Industrial | 153,695 | 155,959 | 139,691 | 146,065 | 595,410 | 143,727 | ||||||
Total | $ | 226,693 | $ | 210,203 | $ | 193,719 | $ | 219,964 | $ | 850,578 | $ | 221,617 |
NET REVENUES | ||||||||||||
Aerospace & Defense | $ | 58,488 | $ | 60,613 | $ | 63,461 | $ | 69,979 | $ | 252,541 | $ | 63,370 |
Industrial | 117,963 | 126,977 | 126,248 | 134,938 | 506,126 | 122,285 | ||||||
Total | $ | 176,451 | $ | 187,590 | $ | 189,709 | $ | 204,917 | $ | 758,667 | $ | 185,655 |
SEGMENT OPERATING INCOME | ||||||||||||
Aerospace & Defense | $ | 9,988 | $ | 11,741 | $ | 15,927 | $ | 18,416 | $ | 56,073 | $ | 11,320 |
Industrial | 5,834 | 7,237 | 7,124 | 8,700 | 28,896 | 6,857 | ||||||
Corporate expenses | (9,035) | (7,950) | (7,015) | (6,636) | (30,638) | (7,770) | ||||||
Total | $ | 6,787 | $ | 11,028 | $ | 16,036 | $ | 20,480 | $ | 54,331 | $ | 10,407 |
SEGMENT OPERATING MARGIN % | ||||||||||||
Aerospace & Defense | 17.1 | % | 19.4 | % | 25.1 | % | 26.3 | % | 22.2 | % | 17.9 | % |
Industrial | 4.9 | % | 5.7 | % | 5.6 | % | 6.4 | % | 5.7 | % | 5.6 | % |
Total | 3.8 | % | 5.9 | % | 8.5 | % | 10.0 | % | 7.2 | % | 5.6 | % |
2021 As Restated | 2022 | |||||||||||
Pipeline Engineering (1) | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | ||||||
ORDERS - Industrial | $ | 5,531 | $ | 5,192 | $ | 6,575 | $ | 7,121 | $ | 24,419 | $ | 2,260 |
NET REVENUES - Industrial | $ | 2,994 | $ | 3,124 | $ | 3,236 | $ | 5,248 | $ | 14,602 | $ | 3,012 |
SEGMENT OP. INC. -Industrial | $ | (2,479) | $ | (1,754) | $ | (2,470) | $ | (3,191) | $ | (9,893) | $ | (3,190) |
1) Excluding Pipeline Engineering business as related to the Industrial Segment with respect to accounting irregularities noted on March 14, 2022 8-K filing. |
2021 As Restated | 2022 | |||||||||||
Results excluding Pipeline Engineering | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | ||||||
ORDERS | ||||||||||||
Aerospace & Defense | $ | 72,999 | $ | 54,243 | $ | 54,028 | $ | 73,898 | $ | 255,168 | $ | 77,890 |
Industrial | 148,164 | 150,767 | 133,116 | 138,944 | 570,991 | 141,467 | ||||||
Total | $ | 221,163 | $ | 205,010 | $ | 187,144 | $ | 212,842 | $ | 826,159 | $ | 219,357 |
NET REVENUES | ||||||||||||
Aerospace & Defense | $ | 58,488 | $ | 60,613 | $ | 63,461 | $ | 69,979 | $ | 252,541 | $ | 63,370 |
Industrial | 114,969 | 123,853 | 123,012 | 129,690 | 491,524 | 119,273 | ||||||
Total | $ | 173,457 | $ | 184,466 | $ | 186,473 | $ | 199,669 | $ | 744,065 | $ | 182,643 |
SEGMENT OPERATING INCOME | ||||||||||||
Aerospace & Defense | $ | 9,988 | $ | 11,741 | $ | 15,927 | $ | 18,416 | $ | 56,073 | $ | 11,320 |
Industrial | 8,313 | 8,991 | 9,594 | 11,891 | 38,789 | 10,047 | ||||||
Corporate expenses | (9,035) | (7,950) | (7,015) | (6,636) | (30,638) | (7,770) | ||||||
Total | $ | 9,266 | $ | 12,782 | $ | 18,506 | $ | 23,671 | $ | 64,224 | $ | 13,597 |
SEGMENT OPERATING MARGIN % | ||||||||||||
Aerospace & Defense | 17.1 | % | 19.4 | % | 25.1 | % | 26.3 | % | 22.2 | % | 17.9 | % |
Industrial | 7.2 | % | 7.3 | % | 7.8 | % | 9.2 | % | 7.9 | % | 8.4 | % |
Total | 5.3 | % | 6.9 | % | 9.9 | % | 11.9 | % | 8.6 | % | 7.4 | % |
2021 As Restated | 2022 | |||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||
Net Cash (Used In) Provided By Operating Activities | $ | (19,210) | $ | 8,866 | $ | 10,197 | $ | 10,595 | $ | 10,448 | $ | (15,924) |
LESS | ||||||||||||
Capital expenditures, net of sale proceeds (a)
| 3,392 | 2,644 | 4,541 | 4,168 | 14,745 | 3,592 | ||||||
FREE CASH FLOW | $ | (22,602) | $ | 6,222 | $ | 5,656 | $ | 6,427 | $ | (4,297) | $ | (19,516) |
Gross Debt | $ | 538,541 | $ | 524,391 | $ | 518,464 | $ | 526,311 | $ | 526,311 | $ | 546,775 |
Less: Cash & Cash equivalents | 64,837 | 58,862 | 58,013 | 59,924 | 59,924 | 61,122 | ||||||
GROSS DEBT, NET OF CASH | $ | 473,704 | $ | 465,529 | $ | 460,451 | $ | 466,387 | $ | 466,387 | $ | 485,653 |
TOTAL SHAREHOLDERS' EQUITY | $ | 138,663 | $ | 122,185 | $ | 121,256 | $ | 133,716 | $ | 133,716 | $ | 110,321 |
GROSS DEBT AS % OF EQUITY | 388 | % | 429 | % | 428 | % | 394 | % | 394 | % | 496 | % |
GROSS DEBT, NET OF CASH AS % OF EQUITY | 342 | % | 381 | % | 380 | % | 349 | % | 349 | % | 440 | % |
(a) Includes capital expenditures, net of proceeds of asset sales from GAAP operating cash flow.
|
2021 As Restated | 2022 | |||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||
NET (LOSS) INCOME | $ | (11,796) | $ | (18,784) | $ | (2,630) | $ | (28,427) | $ | (61,638) | $ | (21,481) |
LESS: | ||||||||||||
Restructuring related inventory charges (recoveries), net | - | 958 | (60) | (299) | 599 | 2,757 | ||||||
Restructuring charges, net | 2,060 | 2,281 | (312) | 205 | 4,234 | 6,447 | ||||||
Acquisition amortization | 10,487 | 10,498 | 10,417 | 10,369 | 41,772 | 9,391 | ||||||
Acquisition depreciation | 2,375 | 1,327 | 1,412 | 1,397 | 6,511 | 1,045 | ||||||
Special (recoveries) charges, net | (2,870) | 4,523 | 1,126 | 17,259 | 20,038 | 2,556 | ||||||
Goodwill Impairment charge | - | - | - | 10,500 | 10,500 | - | ||||||
Income tax impact | (44) | 2,425 | (596) | (1,622) | 163 | 384 | ||||||
Net loss (income) from discontinued operations | 239 | 878 | (2,510) | (13) | (1,406) | - | ||||||
ADJUSTED NET INCOME | $ | 451 | $ | 4,106 | $ | 6,847 | $ | 9,369 | $ | 20,773 | $ | 1,099 |
(LOSS) EARNINGS PER COMMON SHARE (Diluted) | $ | (0.58) | $ | (0.91) | $ | (0.13) | $ | (1.38) | $ | (3.00) | (1.06) | |
LESS: | ||||||||||||
Restructuring related inventory charges | - | 0.05 | - | (0.01) | 0.03 | 0.14 | ||||||
Restructuring charges, net | 0.10 | 0.11 | (0.02) | 0.01 | 0.21 | 0.32 | ||||||
Acquisition amortization | 0.51 | 0.51 | 0.51 | 0.51 | 2.04 | 0.46 | ||||||
Acquisition depreciation | 0.12 | 0.06 | 0.07 | 0.07 | 0.32 | 0.05 | ||||||
Special (recoveries) charges, net | (0.14) | 0.22 | 0.05 | 0.84 | 0.98 | 0.13 | ||||||
Impairment charge | - | - | - | 0.51 | 0.51 | - | ||||||
Income tax impact | - | 0.12 | (0.03) | (0.08) | 0.01 | 0.02 | ||||||
(Loss) earnings) per share from discontinued operations | 0.01 | 0.04 | (0.12) | - | (0.07) | - | ||||||
ADJUSTED EARNINGS PER SHARE (Diluted) | $ | 0.02 | $ | 0.20 | $ | 0.33 | $ | 0.46 | $ | 1.01 | $ | 0.05 |
2021 As Restated | 2022 | |||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||
NET (LOSS) INCOME | $ | (11,796) | $ | (18,784) | $ | (2,629) | $ | (28,426) | $ | (61,635) | $ | (21,481) |
LESS: | ||||||||||||
Interest expense, net | 8,369 | 7,958 | 7,997 | 8,040 | 32,365 | 9,456 | ||||||
Depreciation | 6,509 | 5,460 | 5,536 | 5,348 | 22,854 | 5,000 | ||||||
Amortization | 10,696 | 10,657 | 10,576 | 10,375 | 42,304 | 9,397 | ||||||
Provision for income taxes | (297) | 2,659 | 850 | 1,970 | 5,182 | 1,523 | ||||||
Loss (income) from discontinued operations | 239 | 878 | (2,510) | (13) | (1,406) | - | ||||||
EBITDA | $ | 13,720 | $ | 8,828 | $ | 19,820 | $ | (2,706) | $ | 39,664 | $ | 3,895 |
LESS: | ||||||||||||
Restructuring related inventory charges (recoveries) | - | 958 | (60) | (299) | 599 | 2,757 | ||||||
Restructuring charges, net | 2,060 | 2,281 | (312) | 205 | 4,234 | 6,447 | ||||||
Special (recoveries) charges, net | (2,870) | 4,523 | 1,126 | 17,259 | 20,038 | 2,556 | ||||||
Goodwill impairment charge | - | - | - | 10,500 | 10,500 | - | ||||||
ADJUSTED EBITDA | $ | 12,910 | $ | 16,590 | $ | 20,574 | $ | 24,959 | $ | 75,035 | $ | 15,655 |
2021 As Restated | 2022 | |||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||
GAAP OPERATING INCOME (LOSS) | $ | (5,266) | $ | (8,557) | $ | 3,451 | $ | (18,952) | $ | (29,323) | $ | (11,789) |
LESS: | ||||||||||||
Restructuring related inventory charges (recoveries) | - | 958 | (60) | (299) | 599 | 2,757 | ||||||
Restructuring charges, net | 2,060 | 2,281 | (312) | 205 | 4,234 | 6,447 | ||||||
Acquisition amortization | 10,487 | 10,498 | 10,417 | 10,369 | 41,772 | 9,391 | ||||||
Acquisition depreciation | 2,375 | 1,327 | 1,412 | 1,397 | 6,511 | 1,045 | ||||||
Special (recoveries) charges, net | (2,870) | 4,523 | 1,126 | 17,259 | 20,038 | 2,556 | ||||||
Goodwill impairment charge | - | - | - | 10,500 | 10,500 | - | ||||||
ADJUSTED OPERATING INCOME | $ | 6,787 | $ | 11,029 | $ | 16,035 | $ | 20,479 | $ | 54,331 | $ | 10,407 |
GAAP OPERATING MARGIN | (3.0) | % | (4.6) | % | 1.8 | % | (9.2) | % | (3.9) | % | (6.3) | % |
LESS: | ||||||||||||
Restructuring related inventory charges (recoveries) | - | % | 0.5 | % | - | % | (0.1) | % | 0.1 | % | 1.5 | % |
Restructuring charges, net | 1.2 | % | 1.2 | % | (0.2) | % | 0.1 | % | 0.6 | % | 3.5 | % |
Acquisition amortization | 5.9 | % | 5.6 | % | 5.5 | % | 5.1 | % | 5.5 | % | 5.1 | % |
Acquisition depreciation | 1.3 | % | 0.7 | % | 0.7 | % | 0.7 | % | 0.9 | % | 0.6 | % |
Special (recoveries) charges, net | (1.6) | % | 2.4 | % | 0.6 | % | 8.4 | % | 2.6 | % | 1.4 | % |
Goodwill impairment charge | - | % | - | % | - | % | 5.1 | % | 1.4 | % | - | % |
ADJUSTED OPERATING MARGIN | 3.8 | % | 5.9 | % | 8.5 | % | 10.0 | % | 7.2 | % | 5.6 | % |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Circor International Inc. published this content on 11 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2022 13:26:04 UTC.