Breaking News Bar

Business News and Information

CIRCOR Reports Fourth-Quarter and 2010 Results

CIRCOR International, Inc. (NYSE: CIR), a provider of valves and other highly engineered products and subsystems that control the flow of fluids safely and efficiently in the aerospace, energy and industrial markets, today announced financial results for the fourth quarter and year ended December 31, 2010.

Management Comments on Fourth-Quarter Results

“CIRCOR concluded 2010 with solid top line growth for the fourth quarter,” said Chairman and Chief Executive Officer Bill Higgins. “Total revenues were up 23% from the fourth quarter of 2009 in line with our initial guidance, driven by strong short-cycle Energy segment growth. Adjusted earnings, excluding Leslie asbestos and bankruptcy charges, were also within our initial guidance range.”

“We are pleased with year-over-year order growth in the Energy segment of 50%, confirming that capital spending on large international projects is gradually coming off the cyclical bottom,” said Higgins.

“Finally, we are ecstatic with the affirmation by the U.S. Federal District Court of Leslie’s reorganization plan,” said Higgins. “We have now cleared the last major milestone for Leslie Controls to emerge from bankruptcy free of asbestos liabilities.”

Consolidated Results

Revenues for the fourth quarter of 2010 were $194.1 million, a 23% increase from $158.1 million generated in the fourth quarter of 2009. CIRCOR reported net income for the fourth quarter of 2010 of $7.7 million, or $0.44 per diluted share, compared with a net loss of $20.7 million, or $1.22 per share, for the fourth quarter of 2009.

Fourth-quarter 2010 net income included pretax Leslie asbestos and bankruptcy charges of $2.2 million, compared with charges during the fourth quarter of 2009 of $40.4 million of pretax Leslie asbestos charges and a $0.5 million intangible trade name impairment charge. Excluding special, impairment and Leslie asbestos and bankruptcy charges net of tax, adjusted earnings per diluted share increased 56% to $0.53 for the fourth quarter of 2010, compared with $0.34 in the fourth quarter of 2009.

Consolidated Orders and Free Cash Flow

The Company received orders totaling $212.4 million during the fourth quarter of 2010, an increase of 22% compared with the fourth quarter of 2009 and a 3% increase compared with the third quarter of 2010. Backlog as of December 31, 2010 was $404.3 million, up 28% from backlog of $316.7 million at December 31, 2009 and up 3% from $391.6 million at October 3, 2010.

During the fourth quarter of 2010, the Company generated $15.7 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) compared with generating $11.8 million in the fourth quarter of 2009, with the increase primarily due to higher net income. For full year 2010, the Company had free cash flow of $16.9 million compared with $33.0 million in 2009. The decline in free cash flow from 2009 largely resulted from working capital increases and higher capital expenditures.

Energy

CIRCOR’s Energy segment revenues of $90.2 million for the quarter ended December 31, 2010 represent a 37% increase from $66.1 million for the quarter ended December 31, 2009. The increase included 41% organic growth, which was partially offset by a negative foreign currency adjustment of 4%. The organic growth was primarily the result of strong shipment volume in the North American short-cycle business.

Incoming orders for the fourth quarter of 2010 were $120.8 million, an increase of 50% year over year and 23% sequentially. The year-over-year growth was primarily due to continued strength in the North American short-cycle business and a strong recovery in late-cycle large energy projects. Ending backlog totaled $179.9 million, a 35% increase year over year and an 18% increase sequentially.

For the fourth quarter of 2010, the Energy segment adjusted operating margin, which excludes the impact of special charges, of 6.7% compares with 3.0% for the fourth quarter of 2009 and 11.1% for the third quarter of 2010. The 2010 year-over-year increase in fourth-quarter adjusted operating margin was primarily driven by organic growth, associated operating leverage, and lack of severance and consolidation expenses which were incurred in the fourth quarter of 2009. This improvement was partially offset by severe pricing pressures and cost overruns in large international projects.

Aerospace

CIRCOR’s Aerospace segment revenues increased by 24% to $35.5 million for the fourth quarter of 2010 from $28.5 million in the fourth quarter of 2009. The increase in revenues was driven by 15% growth from acquisitions and 12% organic growth, which was partially offset by a 3% decline from foreign currency adjustments. The organic growth was from sales across most end markets.

Incoming orders for the fourth quarter of 2010 were $30.8 million, an increase of 24% year over year, but down 2% sequentially. The majority of the year-over-year increase in orders was due to the acquisition of Castle in August 2010. Ending backlog totaled $147.2 million, an increase of 28% year over year, but down 4% sequentially.

The Aerospace segment’s adjusted operating margin was 14.1% for the fourth quarter of 2010, compared with 14.7% for the fourth quarter of 2009, which excludes the impact of special charges, and 9.6% for the third quarter of 2010. Fourth-quarter 2010 adjusted operating margins decreased primarily due to higher operating expenses related to the support of new programs and acquisition integration costs.

Flow Technologies

CIRCOR’s Flow Technologies segment revenues increased 8% to $68.4 million for the fourth quarter of 2010 from $63.5 million in the fourth quarter of 2009. Fourth-quarter 2010 revenues reflected organic growth of 10%, primarily due to semiconductor, maritime, industrial and process strength, and growth from acquisitions of 1%, which was partially offset by foreign currency adjustments of 3%.

Incoming orders for this segment were $60.8 million for the fourth quarter of 2010, a decrease of 12% year over year and 21% sequentially. The year-over-year and sequential decrease was due to lower semiconductor and maritime orders offsetting moderate growth in most other markets. Ending backlog totaled $77.2 million, an increase of 14% year over year and a decrease of 10% sequentially.

This segment’s adjusted operating margin, which excludes the impact of Leslie asbestos and bankruptcy charges, for the fourth quarter of 2010 was 12.5%, compared with 11.7% in the fourth quarter of 2009 and 13.1% in the third quarter of 2010. The fourth-quarter year-over-year adjusted operating margin increase was due primarily to higher volumes and associated leverage in addition to a gain from a small asset disposition.

Business and Financial Outlook

“We executed well on our growth strategy in 2010,” said Higgins. “Our strategy is to strengthen our positions in targeted end-markets and build global capabilities in high-growth emerging markets through organic and acquisition growth while incrementally expanding margins. We believe this strategy will enable us to double the size of our company within the next three to five years.”

“We remain cautiously optimistic as we proceed in 2011. Most of the energy markets are rebounding although pricing of large projects continues to be competitive. Commercial aerospace looks stronger in general, but we expect weakness in military sales. Most of our industrial markets are continuing to show growth,” concluded Higgins.

CIRCOR currently expects revenues for the first quarter of 2011 in the range of $193 million to $203 million and adjusted earnings in the range of $0.41 to $0.51 per diluted share. CIRCOR’s guidance for adjusted earnings per share excludes $0.02 per diluted share in Leslie asbestos and bankruptcy charges and assumes a 30% tax rate and that exchange rates remain at present levels.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, February 24, 2011, at 10:00 a.m. ET. Those who wish to listen to the conference call and view the accompanying presentation slides should visit Webcasts & Presentations in the Investors portion of the CIRCOR website. The live call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. If you are unable to listen to the live call, the webcast will be archived for one year on the Company’s website.

Use of Non-GAAP Financial Measures

Adjusted net income, adjusted earnings per diluted share, adjusted operating margin, and free cash flow are non-GAAP financial measures and are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States. CIRCOR believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which are, in some cases, beyond the control of CIRCOR. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, those relating to CIRCOR’s future performance, including first-quarter revenue and earnings guidance; the Company’s strategy to strengthen its positions in targeted end-markets and build global capabilities in high-growth emerging markets through organic and acquisition growth while incrementally expanding margins; belief that strategy will enable CIRCOR to double its size within the next three to five years; expectations for weak military sales; and the Company's expectations related to the process for Leslie Controls' emergence from bankruptcy. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND SUBSEQUENT REPORTS ON FORMS 10-Q, WHICH CAN BE ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About CIRCOR International, Inc. CIRCOR International, Inc. designs, manufactures and markets valves and other highly engineered products and subsystems that control the flow of fluids safely and efficiently in the aerospace, energy and industrial markets. With more than 7,000 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands. CIRCOR’s culture, built on the CIRCOR Business System, is defined by the Company’s commitment to attracting, developing and retaining the best talent and pursuing continuous improvement in all aspects of its business and operations. The Company’s strategy includes growing organically by investing in new, differentiated products; adding value to component products; and increasing the development of mission-critical subsystems and solutions. CIRCOR also plans to leverage its strong balance sheet to acquire strategically complementary businesses. For more information, visit the Company’s investor relations web site at http://investors.circor.com.

CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
UNAUDITED

Three Months Ended

Twelve Months Ended

December 31, 2010

December 31, 2009December 31, 2010

December 31, 2009

Net revenues $ 194,059 $ 158,113 $ 685,910 $ 642,622
Cost of revenues 140,532 109,920 488,641 448,043
GROSS PROFIT 53,527 48,193 197,269 194,579
Selling, general and administrative expenses 40,483 39,855 149,508 137,982
Leslie asbestos and bankruptcy charges 2,173 40,397 32,775 54,079
Impairment charges - 485 - 485
Special recoveries - - - (1,678 )
OPERATING INCOME (LOSS) 10,871 (32,544 ) 14,986 3,711
Other expense (income):
Interest income (82 ) (76 ) (244 ) (467 )
Interest expense 723 678 2,760 1,535
Other expense (income), net 608 967 (39 ) (441 )
Total other expense 1,249 1,569 2,477 627
INCOME (LOSS) BEFORE INCOME TAXES 9,622 (34,113 ) 12,509 3,084
Provision (benefit) for income taxes 1,890 (13,386 ) (115 ) (2,786 )
NET INCOME (LOSS) $ 7,732 $ (20,727 ) $ 12,624 $ 5,870
Earnings (loss) per common share:
Basic $ 0.45 $ (1.22 ) $ 0.74 $ 0.35
Diluted $ 0.44 $ (1.22 ) $ 0.73 $ 0.34
Weighted average common shares outstanding:
Basic 17,165 17,033 17,137 17,008
Diluted 17,378 17,033 17,297 17,111
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
Twelve Months Ended
December 31, 2010December 31, 2009
OPERATING ACTIVITIES
Net income $ 12,624 $ 5,870

Adjustments to reconcile net income to net cash provided
  by operating activities:

Depreciation 13,075 13,307
Amortization 4,301 3,034
Goodwill and intangible impairment charges - 485
Provision for future asbestos claims - 39,800
Provision for Leslie bankruptcy settlement 24,974 -
Compensation expense of stock-based plans 3,430 2,717
Tax effect of share based compensation (189 ) 493
Deferred income taxes (benefit) (9,868 ) (18,237 )
Loss (gain) on disposal of property, plant and equipment 315 (91 )

Changes in operating assets and liabilities, net of
   effects from business acquisitions:

Trade accounts receivable (18,246 ) 35,936
Inventories (16,865 ) 49,157
Prepaid expenses and other assets 2,059 509
Accounts payable, accrued expenses and other liabilities 18,867 (86,428 )
Net cash provided by operating activities 34,477 46,552
INVESTING ACTIVITIES
Additions to property, plant and equipment (14,913 ) (11,032 )
Proceeds from the sale of property, plant and equipment 106 485
Purchase of investments - (300,431 )
Proceeds from sale of investments 21,427 315,917
Business acquisitions, net of cash acquired (34,401 ) (37,516 )
Net cash used in investing activities (27,781 ) (32,577 )
FINANCING ACTIVITIES
Proceeds from long-term debt 88,680 60,051
Payments of long-term debt (95,370 ) (73,336 )
Debt issuance costs (1,935 )
Dividends paid (2,643 ) (2,568 )
Proceeds from the exercise of stock options 529 240
Tax effect of share based compensation 189 (493 )
Net cash used in financing activities (8,615 ) (18,041 )
Effect of exchange rate changes on cash and cash equivalents 1,321 2,943
DECREASE IN CASH AND CASH EQUIVALENTS (598 ) (1,123 )
Cash and cash equivalents at beginning of year 46,350 47,473
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 45,752 $ 46,350
CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
UNAUDITED
December 31, 2010December 31, 2009
ASSETS
Current Assets:
Cash & cash equivalents $ 45,752 $ 46,350
Short-term investments 101 21,498

Trade accounts receivable, less allowance
  for doubtful accounts of $822 and $1,992, respectively

138,860 115,260
Inventories 167,797 145,031
Income taxes refundable 1,625 726
Prepaid expenses and other current assets 5,749 4,195
Deferred income tax asset 20,111 15,847
Insurance receivables 38 4,614
Assets held for sale 542 1,167
Total Current Assets 380,575 354,688
Property, Plant and Equipment, net 95,768 95,167
Other Assets:
Goodwill 63,175 47,893
Intangibles, net 62,322 55,238
Deferred income tax asset 11,829 5,676
Other assets 2,526 3,391
Total Assets $ 616,195 $ 562,053
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:

Accounts payable

$ 80,577 $ 57,239
Accrued expenses and other current liabilities 51,248 46,736
Accrued compensation and benefits 22,305 18,617
Leslie asbestos and bankruptcy related liabilities 79,831 12,476
Income taxes payable 38 -
Notes payable and current portion of long-term debt 851 5,914
Total Current Liabilities 234,850 140,982
Long-Term Debt, net of current portion 684 1,565
Long-Term Leslie asbestos liability - 47,785
Other Non-Current Liabilities 23,841 21,313
Shareholders' Equity:

Preferred stock, $.01 par value; 1,000,000 shares
  authorized; no shares issued and outstanding

- -

Common stock, $.01 par value; 29,000,000 shares
  authorized; and 17,112,688 and 16,991,365 issued and
  outstanding, respectively

171 170
Additional paid-in capital 254,154 249,960
Retained earnings 96,389 86,408
Accumulated other comprehensive income 6,106 13,870
Total Shareholders' Equity 356,820 350,408
Total Liabilities and Shareholders' Equity $ 616,195 $ 562,053
CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in millions)
UNAUDITED
Three Months EndedTwelve Months Ended
December 31, 2010December 31, 2009December 31, 2010December 31, 2009
ORDERS 1
Energy $ 120.8 $ 80.4 $ 364.8 $ 250.5
Aerospace

30.8

24.9

123.9

114.4
Flow Technologies

60.8

69.1

271.6

236.9
Total orders $ 212.4 $ 174.4 $ 760.3 $ 601.8
December 31, 2010December 31, 2009
BACKLOG 2
Energy $ 179.9 $ 133.3
Aerospace

147.2

115.3
Flow Technologies

77.2

68.1
Total backlog $ 404.3 $ 316.7

Note 1: Beginning in Q2 2010, orders have been adjusted to exclude the foreign exchange impact from backlog remeasurement.

The three and twelve months ended December 31, 2009 reflect an increase of $3.5 million and a decrease of $3.9 million, respectively.

Note 2: Backlog includes all unshipped customer orders.
CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share)
UNAUDITED
20092010
1ST QTR2ND QTR3RD QTR4TH QTRYTD1ST QTR2ND QTR3RD QTR4TH QTRYTD
NET REVENUES
Energy $ 89,307 $ 76,814 $ 61,185 $ 66,113 $ 293,419 $ 57,722 $ 77,305 $ 80,613 $ 90,229 $ 305,869
Aerospace 28,344 30,243 26,234 28,506 113,327 27,274 27,811 28,316 35,465 118,866
Flow Technologies 57,996 57,478 56,908 63,494 235,876 61,273 62,889 68,648 68,365 261,175
Total 175,647 164,535 144,327 158,113 642,622 146,269 168,005 177,577 194,059 685,910
Total
* ADJUSTED OPERATING MARGIN
Energy 18.1 % 12.3 % 10.9 % 3.0 % 11.7 % 3.5 % 8.3 % 11.1 % 6.7 % 7.7 %
Aerospace 15.4 % 16.2 % 13.2 % 14.7 % 14.9 % 13.2 % 14.6 % 9.6 % 14.1 % 13.0 %
Flow Technologies 11.6 % 9.5 % 10.9 % 11.7 % 11.0 % 10.2 % 10.1 % 13.1 % 12.5 % 11.5 %
Segment operating margin 15.5 % 12.1 % 11.3 % 8.6 % 12.0 % 8.1 % 10.0 % 11.7 % 10.1 % 10.1 %
Corporate expenses -3.1 % -3.4 % -3.0 % -3.3 % -3.2 % -3.1 % -3.1 % -2.7 % -3.3 % -3.1 %
* Adjusted operating margin 12.5 % 8.7 % 8.4 % 5.3 % 8.8 % 5.0 % 6.9 % 8.9 % 6.7 % 7.0 %
Leslie asbestos and bankruptcy charges (recoveries) 4.7 % 2.1 % 1.4 % 25.5 % 8.4 % -0.4 % 17.2 % 1.3 % 1.1 % 4.8 %
Impairment charges 0.0 % 0.0 % 0.0 % 0.3 % 0.1 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Special charges (recoveries) -0.6 % 0.0 % -0.4 % 0.0 % -0.3 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Total operating margin 8.4 % 6.6 % 7.4 % -20.6 % 0.6 % 5.4 % -10.3 % 7.6 % 5.6 % 2.2 %
* ADJUSTED OPERATING INCOME
Energy 16,169 9,461 6,696 1,966 34,292 2,025 6,424 8,968 6,024 23,441
Aerospace 4,372 4,905 3,461 4,195 16,933 3,607 4,067 2,726 5,002 15,402
Flow Technologies 6,744 5,484 6,197 7,444 25,869 6,276 6,367 8,997 8,512 30,152
Segment operating income 27,285

19,850

16,354 13,605 77,094 11,908 16,858 20,691 19,538 68,995
Corporate expenses (5,365 ) (5,589 ) (4,276 ) (5,267 ) (20,497 ) (4,607 ) (5,274 ) (4,859 ) (6,494 ) (21,234 )
* Adjusted operating income 21,920 14,261 12,078 8,338 56,597 7,301 11,584 15,832 13,044 47,761
Leslie asbestos and bankruptcy charges (recoveries) 8,263 3,442 1,977 40,397 54,079 (648 ) 28,908 2,343 2,173 32,776
Impairment charges - - - 485 485 - - - - -
Special charges (recoveries) (1,135 ) - (543 ) - (1,678 ) - - - - -
Total operating income 14,792 10,819 10,644 (32,544 ) 3,711 7,949 (17,325 ) 13,490 10,871 14,986
INTEREST EXPENSE, NET (32 ) (41 ) (394 ) (602 ) (1,069 ) (554 ) (586 ) (734 ) (641 ) (2,515 )
OTHER (EXPENSE) INCOME, NET 183 267 959 (967 ) 442 51 (258 ) 853 (608 ) 38
PRETAX INCOME (LOSS) 14,943 11,045 11,209 (34,113 ) 3,084 7,446 (18,169 ) 13,609 9,622 12,508
(PROVISION) BENEFIT FOR INCOME TAXES (4,483 ) (3,313 ) (2,804 ) 13,386 2,786 (1,713 ) 6,928 (3,210 ) (1,890 ) 115
EFFECTIVE TAX RATE 30.0 % 30.0 % 25.0 % 39.2 % -90.3 % 23.0 % 38.1 % 23.6 % 19.6 % -0.9 %
NET (LOSS) INCOME $ 10,460 $ 7,732 $ 8,405 $ (20,727 ) $ 5,870 $ 5,733 $ (11,241 ) $ 10,399 $ 7,732 $ 12,624
Weighted Average Common Shares Outstanding (Diluted) 17,014 17,066 17,116 17,033 17,111 17,193 17,109 17,258 17,378 17,297
EARNINGS PER COMMON SHARE (Diluted) $ 0.61 $ 0.45 $ 0.49 $ (1.22 ) $ 0.34 $ 0.33 $ (0.66 ) $ 0.60 $ 0.44 $ 0.73
EBIT $ 14,975 $ 11,086 $ 11,603 $ (33,511 ) $ 4,153 $ 8,000 $ (17,583 ) $ 14,343 $ 10,263 $ 15,024
Depreciation 2,839 3,245 3,536 3,687 13,307 3,228 3,115 3,166 3,566 13,075
Amortization of intangibles 622 627 707 1,078 3,034 979 964 1,122 1,236 4,301
EBITDA $ 18,436 $ 14,958 $ 15,846 $ (28,746 ) $ 20,494 $ 12,207 $ (13,504 ) $ 18,631 $ 15,065 $ 32,400
EBITDA AS A PERCENT OF SALES 10.5 % 9.1 % 11.0 % -18.2 % 3.2 % 8.3 % -8.0 % 10.5 % 7.8 % 4.7 %
CAPITAL EXPENDITURES $ 2,576 $ 1,925 $ 1,605 $ 4,926 $ 11,032 $ 3,606 $ 4,580 $ 3,213 $ 3,513 $ 14,913

* Adjusted Operating Income & Margin excludes Special, Impairment, and Leslie asbestos and bankruptcy charges.

CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED
GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands)
UNAUDITED
20092010
1ST QTR2ND QTR3RD QTR4TH QTRYTD1ST QTR2ND QTR3RD QTR4TH QTRYTD

FREE CASH FLOW [NET CASH FLOW FROM OPERATING
ACTIVITIES LESS CAPITAL EXPENDITURES LESS
DIVIDENDS PAID]

$(7,928)$17,882$11,241$11,757$32,952$(7,019)$11,947$(3,566)$15,560$16,921

ADD: Capital expenditures

2,576 1,925 1,605 4,926 11,032 3,606 4,580 3,213 3,513 14,913

Dividends paid

657 637 636 638 2,568 639 640 703 661 2,643
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (4,695 ) $ 20,444 $ 13,482 $ 17,321 $ 46,552 $ (2,774 ) $ 17,167 $ 350 $ 19,734 $ 34,477

NET DEBT (CASH) [TOTAL DEBT LESS CASH & CASH
EQUIVALENTS LESS INVESTMENTS]

$(49,519)$(69,331)$(77,081)$(60,369)$(60,369)$(52,713)$(55,976)$(26,225)$(44,318)$(44,318)
ADD:
Cash & cash equivalents 36,113 33,038 83,708 46,350 46,350 37,812 60,857 68,526 45,752 45,752
Investments 36,991 48,344 3,023 21,498 21,498 22,412 94 97 101 101
TOTAL DEBT $ 23,585 $ 12,051 $ 9,650 $ 7,479 $ 7,479 $ 7,511 $ 4,975 $ 42,398 $ 1,535 $ 1,535
DEBT AS % OF EQUITY7%3%3%2%2%2%2%12%0%0%
TOTAL DEBT 23,585 12,051 9,650 7,479 7,479 7,511 4,975 42,398 1,535 1,535
TOTAL SHAREHOLDERS' EQUITY 341,860 357,596 371,728 350,408 350,408 349,244 324,128 351,719 356,820 356,820

EBIT [NET INCOME LESS INCOME TAXES LESS
INTEREST EXPENSE, NET]

$14,975$11,086$11,603$(33,511)$4,153$8,000$(17,583)$14,343$10,263$15,023
LESS:

Interest expense, net

(32 ) (41 ) (394 ) (602 ) (1,069 ) (554 ) (586 ) (734 ) (641 ) (2,515 )
Provision for income taxes (4,483 ) (3,313 ) (2,804 ) 13,386 2,786 (1,713 ) 6,928 (3,210 ) (1,890 ) 115
NET INCOME $ 10,460 $ 7,732 $ 8,405 $ (20,727 ) $ 5,870 $ 5,733 $ (11,241 ) $ 10,399 $ 7,732 $ 12,624

EBITDA [NET INCOME LESS INTEREST EXPENSE, NET,
LESS DEPRECIATION LESS AMORTIZATION LESS INCOME
LESS DEPRECIATION LESS AMORTIZATION LESS INCOME
TAXES]

$18,436$14,958$15,846$(28,746)$20,494$12,207$(13,504)$18,631$15,065$32,399
LESS:
Interest expense, net (32 ) (41 ) (394 ) (602 ) (1,069 ) (554 ) (586 ) (734 ) (641 ) (2,515 )
Depreciation (2,839 ) (3,245 ) (3,536 ) (3,687 ) (13,307 ) (3,228 ) (3,115 ) (3,166 ) (3,566 ) (13,075 )
Amortization (622 ) (627 ) (707 ) (1,078 ) (3,034 ) (979 ) (964 ) (1,122 ) (1,236 ) (4,301 )
Provision for income taxes (4,483 ) (3,313 ) (2,804 ) 13,386 2,786 (1,713 ) 6,928 (3,210 ) (1,890 ) 115
NET INCOME $ 10,460 $ 7,732 $ 8,405 $ (20,727 ) $ 5,870 $ 5,733 $ (11,241 ) $ 10,399 $ 7,732 $ 12,624

ADJUSTED INCOME [NET INCOME EXCLUDING SPECIAL,
IMPAIRMENT, AND LESLIE ASBESTOS AND BANKRUPTCY
CHARGES, NET OF TAX]

$15,037$9,969$9,285$5,826$40,117$5,312$7,549$11,922$9,144$33,928
LESS:
Special charges (recoveries), net of tax (794 ) - (405 ) - (1,199 ) - - - - -
Impairment charges - - - 295 295 - - - - -
Leslie asbestos and bankruptcy charges
(recoveries), net of tax
5,371 2,237 1,285 26,258 35,151 (421 ) 18,790 1,523 1,412 21,304
NET INCOME $ 10,460 $ 7,732 $ 8,405 $ (20,727 ) $ 5,870 $ 5,733 $ (11,241 ) $ 10,399 $ 7,732 $ 12,624
ADJUSTED WEIGHTED AVERAGE SHARES
N/AN/AN/A17,140N/AN/A17,109N/AN/AN/A
Adjustment for anti-dilutive conversion of shares - - - 107 - - 153 - - -
Weighted average common shares outstanding (diluted) 17,014 17,066 17,116 17,033 17,111 17,193 17,262 17,258 17,378 17,297
ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING SPECIAL,
IMPAIRMENT, AND LESLIE ASBESTOS AND BANKRUPTCY
CHARGES, NET OF TAX]
$0.88$0.58$0.54$0.34$2.34$0.31$0.44$0.69$0.53$1.97

LESS: Special charges (recoveries), net of tax impact on EPS

(0.05 ) - (0.02 ) - (0.07 ) - - - - -
Impairment charges - - - 0.02 0.02 - - - - -

Leslie asbestos and bankruptcy charges (recoveries), net of tax impact on EPS

0.32 0.13 0.08 1.54 2.05 (0.02 ) 1.10 0.09 0.08 1.24
EARNINGS PER COMMON SHARE (Diluted) $ 0.61 $ 0.45 $ 0.49 $ (1.22 ) $ 0.34 $ 0.33 $ (0.66 ) $ 0.60 $ 0.44 $ 0.73
CIRCOR INTERNATIONAL, INC
Leslie Controls Asbestos Items
(in thousands, except case information)
20092010
1ST QTR2ND QTR3RD QTR4TH QTRYTD1ST QTR2ND QTR3RD QTR4TH QTRYTD

Quarterly Case Rollforward

Beginning open cases 968 1,103 1,158 1,143 968 1,104 1,150 1,214 1,340 1,104
Cases filed 222 203 131 131 687 150 169 132

-

451
Cases resolved and dismissed (87 ) (148 ) (146 ) (170 ) (551 ) (104 ) (105 ) (6 )

-

(215 )

Ending open cases

1,103 1,158 1,143 1,104 1,104 1,150 1,214 1,340 1,340 1,340

Ending open mesothelioma cases

578 584 612 597 597 623 672 713 713 713

Income Statement Amounts

Indemnity costs accrued (cases filed) $ 4,602 $ 2,109 $ 1,140 $ 39,810 $ 47,661 $ 699 $ 1,797 $ - $

-

$ 2,496
Adverse verdict costs (recoveries) 90 97 95 (1,308 ) (1,026 ) 65 (2,455 ) - - (2,390 )
Defense costs incurred 3,166 3,275 3,009 2,862 12,312 3,731 3,435 16 319 7,501
Insurance recoveries adjustment 2,069 - - - 2,069 (3,652 ) - - - (3,652 )
Insurance recoveries accrued (1,664 ) (2,039 ) (2,268 ) (966 ) (6,937 ) (1,491 ) (1,135 ) - - (2,626 )
Leslie Bankruptcy related charges, net - - - - - - 27,266 2,327 1,854 31,447

Net pre-tax Leslie asbestos and
bankruptcy expense (recovery)

$ 8,263 $ 3,442 $ 1,976 $ 40,398 $ 54,079 $ (648 ) $ 28,908 $ 2,343 $ 2,173 $ 32,776

Balance Sheet Amounts

Bankruptcy and indemnity liability $ 20,781 $ 19,849 $ 20,060 $ 57,716 $ 57,732 $ 78,976 $ 78,067 $ 77,689
Incurred defense cost liability 4,212 5,169 3,615 2,544 2,099 3,455 1,997 2,142
Insurance recoveries receivable (9,088 ) (7,426 ) (6,485 ) (4,614 ) (7,997 ) (1,180 ) (194 ) (38 )
Net Leslie asbestos liability $ 15,905 $ 17,592 $ 17,190 $ 55,646 $ 51,834 $ 81,251 $ 79,870 $ 79,793
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY
USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
UNAUDITED
1st QTR 2011
LowHigh
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING
SPECIAL, IMPAIRMENT, AND LESLIE ASBESTOS AND
BANKRUPTCY CHARGES, NET OF TAX]
$0.41$0.51
LESS:
Expected special charges (recoveries), net of tax
impact on EPS
$ - $ -
Expected impairment charges, net of tax impact
on EPS
$ - $ -
Expected Leslie asbestos and bankruptcy charges,
net of tax impact on EPS
$ 0.02 $ 0.02
EXPECTED EARNINGS PER COMMON SHARE (Diluted) $ 0.39 $ 0.49

Contacts:

CIRCOR International
Frederic M. Burditt, 781-270-1200
Chief Financial Officer

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
bottom clear