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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CIRCOR International Inc | NYSE:CIR | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 56.00 | 0 | 01:00:00 |
|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
|
|
Delaware
|
|
04-3477276
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
c/o CIRCOR INTERNATIONAL, Inc.
30 Corporate Drive, Suite 200, Burlington, MA
|
|
01803-4238
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
Page
|
|
Financial Statements
(Unaudited)
|
||
|
Condensed Consolidated Balance Sheets as of April 1, 2018 and December 31, 2017
|
|
|
Condensed Consolidated Statements of (Loss) Income for the Three Months Ended April 1, 2018 and April 2, 2017
|
|
|
Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended April 1, 2018 and April 2, 2017
|
|
|
Condensed Consolidated Statements of Cash Flows for the Three Months Ended April 1, 2018 and April 2, 2017
|
|
|
||
Item
6.
|
||
ITEM 1.
|
FINANCIAL STATEMENTS
|
|
April 1, 2018
|
|
December 31, 2017
|
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
123,305
|
|
|
$
|
110,356
|
|
Trade accounts receivable, less allowance for doubtful accounts of $5,882 and $4,791, respectively
|
198,181
|
|
|
223,922
|
|
||
Inventories
|
253,712
|
|
|
244,896
|
|
||
Restricted Cash
|
1,898
|
|
|
1,937
|
|
||
Prepaid expenses and other current assets
|
70,290
|
|
|
57,282
|
|
||
Total Current Assets
|
647,386
|
|
|
638,393
|
|
||
PROPERTY, PLANT AND EQUIPMENT, NET
|
226,439
|
|
|
217,539
|
|
||
OTHER ASSETS:
|
|
|
|
||||
Goodwill
|
520,157
|
|
|
505,762
|
|
||
Intangibles, net
|
497,027
|
|
|
513,364
|
|
||
Deferred income taxes
|
28,236
|
|
|
22,334
|
|
||
Other assets
|
8,862
|
|
|
9,407
|
|
||
TOTAL ASSETS
|
$
|
1,928,107
|
|
|
$
|
1,906,799
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
||||
Accounts payable
|
$
|
118,441
|
|
|
$
|
117,329
|
|
Accrued expenses and other current liabilities
|
167,753
|
|
|
170,454
|
|
||
Accrued compensation and benefits
|
30,865
|
|
|
34,734
|
|
||
Total Current Liabilities
|
317,059
|
|
|
322,517
|
|
||
LONG-TERM DEBT
|
815,795
|
|
|
787,343
|
|
||
DEFERRED INCOME TAXES
|
31,099
|
|
|
26,122
|
|
||
PENSION LIABILITY, NET
|
150,572
|
|
|
150,719
|
|
||
OTHER NON-CURRENT LIABILITIES
|
21,486
|
|
|
18,124
|
|
||
COMMITMENTS AND CONTINGENCIES (NOTE 10)
|
|
|
|
||||
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; 19,825,875 and 19,785,298 shares issued and outstanding at April 1, 2018 and December 31, 2017, respectively
|
212
|
|
|
212
|
|
||
Additional paid-in capital
|
440,699
|
|
|
438,721
|
|
||
Retained earnings
|
254,046
|
|
|
274,243
|
|
||
Common treasury stock, at cost (1,372,488 shares at April 1, 2018 and December 31, 2017)
|
(74,472
|
)
|
|
(74,472
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
(28,389
|
)
|
|
(36,730
|
)
|
||
Total Shareholders’ Equity
|
592,096
|
|
|
601,974
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
1,928,107
|
|
|
$
|
1,906,799
|
|
|
Three Months Ended
|
||||||
|
April 1, 2018
|
|
April 2, 2017
|
||||
Net revenues
|
$
|
275,580
|
|
|
$
|
145,208
|
|
Cost of revenues
|
199,276
|
|
|
98,575
|
|
||
GROSS PROFIT
|
76,304
|
|
|
46,633
|
|
||
Selling, general and administrative expenses
|
77,238
|
|
|
40,089
|
|
||
Special and restructuring charges (recoveries), net
|
12,446
|
|
|
(810
|
)
|
||
OPERATING (LOSS) INCOME
|
(13,380
|
)
|
|
7,354
|
|
||
Other expense (income):
|
|
|
|
||||
Interest expense, net
|
11,801
|
|
|
1,669
|
|
||
Other (income) expense, net
|
(1,861
|
)
|
|
225
|
|
||
TOTAL OTHER EXPENSE, NET
|
9,940
|
|
|
1,894
|
|
||
(LOSS) INCOME BEFORE INCOME TAXES
|
(23,320
|
)
|
|
5,460
|
|
||
(Benefit from) provision for income taxes
|
(5,879
|
)
|
|
687
|
|
||
NET (LOSS) INCOME
|
$
|
(17,441
|
)
|
|
$
|
4,773
|
|
(Loss) Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
(0.88
|
)
|
|
$
|
0.29
|
|
Diluted
|
$
|
(0.88
|
)
|
|
$
|
0.29
|
|
Weighted average number of common shares outstanding:
|
|
|
|
||||
Basic
|
19,806
|
|
|
16,458
|
|
||
Diluted
|
19,806
|
|
|
16,691
|
|
||
Dividends declared per common share
|
$
|
—
|
|
|
$
|
0.0375
|
|
|
Three Months Ended
|
||||||
|
April 1, 2018
|
|
April 2, 2017
|
||||
Net (loss) income
|
$
|
(17,441
|
)
|
|
$
|
4,773
|
|
Other comprehensive income, net of tax:
|
|
|
|
||||
Foreign currency translation adjustments
|
8,341
|
|
|
5,396
|
|
||
Other comprehensive income, net of tax
|
8,341
|
|
|
5,396
|
|
||
COMPREHENSIVE (LOSS) INCOME
|
$
|
(9,100
|
)
|
|
$
|
10,169
|
|
|
Three Months Ended
|
||||||
OPERATING ACTIVITIES
|
April 1, 2018
|
|
April 2, 2017
|
||||
Net (loss) income
|
$
|
(17,441
|
)
|
|
$
|
4,773
|
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
|
|
|
||||
Depreciation
|
7,334
|
|
|
3,798
|
|
||
Amortization
|
12,329
|
|
|
3,092
|
|
||
Bad debt expense (recovery)
|
261
|
|
|
(54
|
)
|
||
Loss on write down of inventory and amortization of fair value step-up
|
7,563
|
|
|
548
|
|
||
Compensation expense of share-based plans
|
1,365
|
|
|
738
|
|
||
Change in fair value of contingent consideration
|
—
|
|
|
(2,500
|
)
|
||
Amortization of debt issuance costs
|
881
|
|
|
—
|
|
||
Loss (gain) on sale or write down of property, plant and equipment
|
1,284
|
|
|
(110
|
)
|
||
Changes in operating assets and liabilities, net of effects of acquisition and disposition:
|
|
|
|
||||
Trade accounts receivable
|
22,038
|
|
|
14,018
|
|
||
Inventories
|
(14,850
|
)
|
|
2,030
|
|
||
Prepaid expenses and other assets
|
(11,648
|
)
|
|
(4,297
|
)
|
||
Accounts payable, accrued expenses and other liabilities
|
(9,261
|
)
|
|
(5,841
|
)
|
||
Net cash (used in) provided by operating activities
|
(145
|
)
|
|
16,195
|
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Additions to property, plant and equipment
|
(8,234
|
)
|
|
(3,001
|
)
|
||
Proceeds from the sale of property, plant and equipment
|
93
|
|
|
190
|
|
||
Business acquisition, working capital adjustment
|
—
|
|
|
1,467
|
|
||
Net cash used in investing activities
|
(8,141
|
)
|
|
(1,344
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from long-term debt
|
71,950
|
|
|
34,900
|
|
||
Payments of long-term debt
|
(44,106
|
)
|
|
(43,100
|
)
|
||
Dividends paid
|
—
|
|
|
(624
|
)
|
||
Proceeds from the exercise of stock options
|
301
|
|
|
295
|
|
||
Return of cash to seller
|
(7,905
|
)
|
|
—
|
|
||
Net cash provided by (used in) financing activities
|
20,240
|
|
|
(8,529
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
956
|
|
|
1,055
|
|
||
INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
12,910
|
|
|
7,377
|
|
||
Cash, cash equivalents, and restricted cash at beginning of period
|
112,293
|
|
|
58,279
|
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD
|
$
|
125,203
|
|
|
$
|
65,656
|
|
Non-cash investing activities:
|
|
|
|
||||
Purchases of property and equipment included in accounts payable and accrued expenses
|
$
|
2,104
|
|
|
$
|
509
|
|
Three months ended
|
April 1, 2018
|
|||
|
|
|
||
Energy Segment
|
|
|||
|
Oil & Gas - Upstream, Midstream & Other
|
$
|
47,885
|
|
|
Oil & Gas - Downstream
|
52,087
|
|
|
|
Total
|
99,972
|
|
|
|
|
|
||
Aerospace & Defense Segment
|
|
|||
|
Commercial Aerospace & Other
|
26,657
|
|
|
|
Defense
|
31,820
|
|
|
|
Total
|
58,477
|
|
|
Industrial Segment
|
|
|||
|
Europe, Middle East, Africa and Asia
|
80,445
|
|
|
|
North America
|
36,686
|
|
|
|
Total
|
117,131
|
|
|
|
|
|
||
Q1 2018 Revenue
|
$
|
275,580
|
|
|
April 1, 2018
|
|
December 31, 2017
|
||||
Raw materials
|
$
|
80,901
|
|
|
$
|
82,372
|
|
Work in process
|
133,767
|
|
|
121,709
|
|
||
Finished goods
|
39,044
|
|
|
40,815
|
|
||
Total inventories
|
$
|
253,712
|
|
|
$
|
244,896
|
|
|
Original Estimate
|
Measurement Period Adjustment
|
Fair Value
|
|
Weighted average amortization period (in years)
|
||||||
Customer relationships
|
$
|
215,000
|
|
$
|
(7,000
|
)
|
$
|
208,000
|
|
|
19
|
Existing technologies
|
107,000
|
|
6,000
|
|
113,000
|
|
|
20
|
|||
Trade names
|
44,000
|
|
2,000
|
|
46,000
|
|
|
Indefinite-life
|
|||
Backlog
|
22,000
|
|
(6,000
|
)
|
16,000
|
|
|
4
|
|||
Total intangible assets
|
$
|
388,000
|
|
$
|
(5,000
|
)
|
$
|
383,000
|
|
|
|
|
Energy
|
|
Aerospace & Defense
|
|
Industrial
|
|
Total
|
||||||||
Goodwill as of December 31, 2017
|
$
|
154,058
|
|
|
$
|
62,548
|
|
|
$
|
289,156
|
|
|
$
|
505,762
|
|
Adjustments to preliminary purchase price allocation
|
(5,406
|
)
|
|
(5,711
|
)
|
|
19,628
|
|
|
8,511
|
|
||||
Currency translation adjustments
|
2,726
|
|
|
39
|
|
|
3,119
|
|
|
5,884
|
|
||||
Goodwill as of April 1, 2018
|
$
|
151,378
|
|
|
$
|
56,876
|
|
|
$
|
311,903
|
|
|
$
|
520,157
|
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
||||
Patents
|
$
|
5,399
|
|
|
$
|
(5,399
|
)
|
Non-amortized intangibles (primarily trademarks and trade names)
|
86,335
|
|
|
—
|
|
||
Customer relationships
|
314,596
|
|
|
(47,269
|
)
|
||
Order backlog
|
23,823
|
|
|
(10,389
|
)
|
||
Acquired technology
|
141,426
|
|
|
(11,766
|
)
|
||
Other
|
5,410
|
|
|
(5,139
|
)
|
||
Total
|
$
|
576,989
|
|
|
$
|
(79,962
|
)
|
Net carrying value of intangible assets
|
$
|
497,027
|
|
|
|
|
Remainder of 2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
After 2022
|
||||||||||||
Estimated amortization expense
|
$
|
36,975
|
|
|
$
|
50,096
|
|
|
$
|
45,903
|
|
|
$
|
43,655
|
|
|
$
|
38,221
|
|
|
$
|
195,842
|
|
|
Three Months Ended
|
||||||
|
April 1, 2018
|
|
April 2, 2017
|
||||
Net revenues
|
|
|
|
||||
Energy
|
$
|
99,972
|
|
|
$
|
76,210
|
|
Aerospace & Defense
|
58,477
|
|
|
41,601
|
|
||
Industrial
|
117,131
|
|
|
27,397
|
|
||
Consolidated net revenues
|
$
|
275,580
|
|
|
$
|
145,208
|
|
|
|
|
|
||||
Segment Income
|
|
|
|
||||
Energy - Segment Operating Income
|
$
|
5,696
|
|
|
$
|
6,407
|
|
Aerospace & Defense - Segment Operating Income
|
8,931
|
|
|
3,784
|
|
||
Industrial - Segment Operating Income
|
12,948
|
|
|
4,384
|
|
||
Corporate expenses
|
(7,802
|
)
|
|
(5,479
|
)
|
||
Subtotal
|
19,773
|
|
|
9,096
|
|
||
Restructuring charges, net
|
9,615
|
|
|
1,458
|
|
||
Special charges (recoveries), net
|
2,831
|
|
|
(2,268
|
)
|
||
Special and restructuring charges (recoveries), net
|
12,446
|
|
|
(810
|
)
|
||
Restructuring related inventory charges
|
473
|
|
|
—
|
|
||
Amortization of inventory step-up
|
6,600
|
|
|
—
|
|
||
Acquisition amortization
|
11,797
|
|
|
2,552
|
|
||
Acquisition depreciation
|
1,837
|
|
|
—
|
|
||
Restructuring and other cost, net
|
20,707
|
|
|
2,552
|
|
||
Consolidated Operating (Loss) Income
|
(13,380
|
)
|
|
7,354
|
|
||
Interest expense, net
|
11,801
|
|
|
1,669
|
|
||
Other (income) expense, net
|
(1,861
|
)
|
|
225
|
|
||
(Loss) Income from operations before income taxes
|
$
|
(23,320
|
)
|
|
$
|
5,460
|
|
|
|
|
|
||||
Capital expenditures
|
|
|
|
||||
Energy
|
$
|
3,345
|
|
|
$
|
791
|
|
Aerospace & Defense
|
944
|
|
|
505
|
|
||
Industrial
|
3,624
|
|
|
453
|
|
||
Corporate
|
276
|
|
|
483
|
|
||
Consolidated capital expenditures
|
$
|
8,189
|
|
|
$
|
2,232
|
|
|
|
|
|
||||
Depreciation and amortization
|
|
|
|
||||
Energy
|
4,201
|
|
|
$
|
3,071
|
|
|
Aerospace & Defense
|
2,793
|
|
|
1,131
|
|
||
Industrial
|
12,440
|
|
|
2,340
|
|
||
Corporate
|
229
|
|
|
348
|
|
||
Consolidated depreciation and amortization
|
19,663
|
|
|
$
|
6,890
|
|
|
|
|
|
|
||||
Identifiable assets
|
April 1, 2018
|
|
April 2, 2017
|
||||
Energy
|
$
|
976,000
|
|
|
$
|
626,183
|
|
Aerospace & Defense
|
348,291
|
|
|
196,681
|
|
||
Industrial
|
1,327,094
|
|
|
241,985
|
|
||
Corporate
|
(723,278
|
)
|
|
(249,896
|
)
|
||
Consolidated identifiable assets
|
$
|
1,928,107
|
|
|
$
|
814,953
|
|
Balance beginning December 31, 2017
|
$
|
4,623
|
|
Provisions
|
618
|
|
|
Claims settled
|
(809
|
)
|
|
Currency translation adjustment
|
67
|
|
|
Balance ending April 1, 2018
|
$
|
4,499
|
|
Term Remaining
|
Maximum Potential
Future Payments
|
||
0–12 months
|
$
|
56,698
|
|
Greater than 12 months
|
29,165
|
|
|
Total
|
$
|
85,863
|
|
|
Three Months Ended
|
||||||
|
April 1, 2018
|
|
April 2, 2017
|
||||
Pension Benefits - U.S. Plans
|
|
|
|
||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
1,762
|
|
|
426
|
|
||
Expected return on plan assets
|
(3,771
|
)
|
|
(575
|
)
|
||
Amortization
|
38
|
|
|
184
|
|
||
Net periodic benefit (income) cost
|
$
|
(1,971
|
)
|
|
$
|
35
|
|
|
|
|
|
||||
Pension Benefits - Non-U.S. Plans
|
|
|
|
||||
Service cost
|
$
|
774
|
|
|
N/A
|
||
Interest cost
|
552
|
|
|
N/A
|
|||
Expected return on plan assets
|
(258
|
)
|
|
N/A
|
|||
Amortization
|
—
|
|
|
N/A
|
|||
Net periodic benefit cost
|
$
|
1,068
|
|
|
N/A
|
||
|
|
|
|
||||
Other Post-Retirement Benefits
|
|
|
|
||||
Service cost
|
$
|
—
|
|
|
N/A
|
||
Interest cost
|
86
|
|
|
N/A
|
|||
Amortization
|
—
|
|
|
N/A
|
|||
Net periodic benefit cost
|
$
|
86
|
|
|
N/A
|
||
|
|
|
|
||||
N/A - no international pension plans or other post-retirement benefits
|
|
|
|
|
April 1, 2018
|
|
April 2, 2017
|
||
Risk-free interest rate
|
2.5
|
%
|
|
1.7
|
%
|
Expected life (years)
|
4.4
|
|
|
4.5
|
|
Expected stock volatility
|
37.2
|
%
|
|
35.1
|
%
|
Expected dividend yield
|
—
|
%
|
|
0.3
|
%
|
|
Foreign Currency Translation Adjustments
|
|
Pension, net
|
|
Total
|
||||||
Balance as of December 31, 2017
|
$
|
(28,584
|
)
|
|
$
|
(8,146
|
)
|
|
$
|
(36,730
|
)
|
Other comprehensive income
|
8,341
|
|
|
—
|
|
|
8,341
|
|
|||
Balance as of April 1, 2018
|
$
|
(20,243
|
)
|
|
$
|
(8,146
|
)
|
|
$
|
(28,389
|
)
|
(in thousands, except per share amounts)
|
Three Months Ended
|
||||||||||||||||||||
|
April 1, 2018
|
|
April 2, 2017
|
||||||||||||||||||
|
Net
Loss
|
|
Shares
|
|
Per Share
Amount
|
|
Net
Income
|
|
Shares
|
|
Per Share
Amount
|
||||||||||
Basic EPS
|
$
|
(17,441
|
)
|
|
19,806
|
|
|
$
|
(0.88
|
)
|
|
$
|
4,773
|
|
|
16,458
|
|
|
$
|
0.29
|
|
Dilutive securities, common stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
233
|
|
|
—
|
|
||||
Diluted EPS
|
$
|
(17,441
|
)
|
|
19,806
|
|
|
$
|
(0.88
|
)
|
|
$
|
4,773
|
|
|
16,691
|
|
|
$
|
0.29
|
|
|
Special & Restructuring Charges (Recoveries), net
|
||||||
|
Three Months Ended
|
||||||
|
April 1, 2018
|
|
April 2, 2017
|
||||
Special charges (recoveries), net
|
$
|
2,831
|
|
|
$
|
(2,268
|
)
|
Restructuring charges, net
|
9,615
|
|
|
1,458
|
|
||
Total special and restructuring charges (recoveries), net
|
$
|
12,446
|
|
|
$
|
(810
|
)
|
|
Special Charges, net
|
||||||||||||||||||
|
For the three months ended April 1, 2018
|
||||||||||||||||||
|
Energy
|
|
Aerospace & Defense
|
|
Industrial
|
|
Corporate
|
|
Total
|
||||||||||
Brazil closure
|
$
|
376
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
376
|
|
Acquisition related charges
|
—
|
|
|
—
|
|
|
—
|
|
|
2,455
|
|
|
2,455
|
|
|||||
Total special charges, net
|
$
|
376
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,455
|
|
|
$
|
2,831
|
|
|
Special (Recoveries) Charges, net
|
||||||||||||||||||
|
For the three months ended April 2, 2017
|
||||||||||||||||||
|
Energy
|
|
Aerospace & Defense
|
|
Industrial
|
|
Corporate
|
|
Total
|
||||||||||
Brazil closure
|
$
|
232
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
232
|
|
Contingent consideration revaluation
|
(2,500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,500
|
)
|
|||||
Total special recoveries, net
|
$
|
(2,268
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,268
|
)
|
|
Restructuring Charges (Recoveries), net
|
||||||||||||||||||
|
As of and for the three months ended April 1, 2018
|
||||||||||||||||||
|
Energy
|
|
Aerospace & Defense
|
|
Industrial
|
|
Corporate
|
|
Total
|
||||||||||
Facility related expenses
|
$
|
1,481
|
|
|
$
|
82
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,563
|
|
Employee related expenses, net
|
6,843
|
|
|
—
|
|
|
1,209
|
|
|
—
|
|
|
8,052
|
|
|||||
Total restructuring charges, net
|
$
|
8,324
|
|
|
$
|
82
|
|
|
$
|
1,209
|
|
|
$
|
—
|
|
|
$
|
9,615
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued restructuring charges as of December 31, 2017
|
|
|
|
|
|
|
|
|
$
|
1,586
|
|
||||||||
Total year to date charges, net (shown above)
|
|
|
|
|
|
|
|
|
9,615
|
|
|||||||||
Charges paid / settled, net
|
|
|
|
|
|
|
|
|
(4,897
|
)
|
|||||||||
Accrued restructuring charges as of April 1, 2018
|
|
|
|
|
|
|
|
|
$
|
6,304
|
|
|
Restructuring Charges / (Recoveries)
|
||||||||||||||||||
|
As of and for the three months ended April 2, 2017
|
||||||||||||||||||
|
Energy
|
|
Aerospace & Defense
|
|
Industrial
|
|
Corporate
|
|
Total
|
||||||||||
Facility related expenses
|
$
|
850
|
|
|
$
|
107
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
957
|
|
Employee related expenses
|
172
|
|
|
329
|
|
|
—
|
|
|
—
|
|
|
501
|
|
|||||
Total restructuring charges, net
|
$
|
1,022
|
|
|
$
|
436
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,458
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued restructuring charges as of December 31, 2016
|
|
|
|
|
|
|
|
|
$
|
1,618
|
|
||||||||
Total year to date charges, net (shown above)
|
|
|
|
|
|
|
|
|
1,458
|
|
|||||||||
Charges paid / settled, net
|
|
|
|
|
|
|
|
|
(1,658
|
)
|
|||||||||
Accrued restructuring charges as of April 2, 2017
|
|
|
|
|
|
|
|
|
$
|
1,418
|
|
|
2018 Actions Restructuring Charges (Recoveries), net as of April 1, 2018
|
||||||||||||||||||
|
Energy
|
|
Aerospace & Defense
|
|
Industrial
|
|
Corporate
|
|
Total
|
||||||||||
Facility related expenses - incurred to date
|
$
|
1,449
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,449
|
|
Employee related expenses - incurred to date
|
6,827
|
|
|
—
|
|
|
1,209
|
|
|
—
|
|
|
8,036
|
|
|||||
Total restructuring related special charges - incurred to date
|
$
|
8,276
|
|
|
$
|
—
|
|
|
$
|
1,209
|
|
|
$
|
—
|
|
|
$
|
9,485
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
||||||||||||||
(in thousands)
|
April 1, 2018
|
|
April 2, 2017
|
|
Total
Change
|
|
Acquisitions
|
|
Operations
|
|
Foreign
Exchange
|
||||||||||||
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Energy
|
$
|
99,972
|
|
|
$
|
76,210
|
|
|
$
|
23,762
|
|
|
$
|
14,731
|
|
|
$
|
6,750
|
|
|
$
|
2,280
|
|
Aerospace & Defense
|
58,477
|
|
|
41,601
|
|
|
16,876
|
|
|
13,690
|
|
|
1,057
|
|
|
2,130
|
|
||||||
Industrial
|
117,131
|
|
|
27,397
|
|
|
89,734
|
|
|
89,453
|
|
|
(1,521
|
)
|
|
1,803
|
|
||||||
Consolidated Net Revenues
|
$
|
275,580
|
|
|
$
|
145,208
|
|
|
$
|
130,372
|
|
|
$
|
117,874
|
|
|
$
|
6,286
|
|
|
$
|
6,213
|
|
|
Three Months Ended
|
|
|
||||||||
(in thousands, except percentages)
|
April 1, 2018
|
|
April 2, 2017
|
|
Change
|
||||||
Net Revenues
|
$
|
99,972
|
|
|
$
|
76,210
|
|
|
$
|
23,762
|
|
Segment Operating Income
|
5,696
|
|
|
6,407
|
|
|
(711
|
)
|
|||
Segment Operating Margin
|
5.7
|
%
|
|
8.4
|
%
|
|
|
|
Three Months Ended
|
|
|
||||||||
(in thousands, except percentages)
|
April 1, 2018
|
|
April 2, 2017
|
|
Change
|
||||||
Net Revenues
|
$
|
58,477
|
|
|
$
|
41,601
|
|
|
$
|
16,876
|
|
Segment Operating Income
|
8,931
|
|
|
3,784
|
|
|
5,147
|
|
|||
Segment Operating Margin
|
15.3
|
%
|
|
9.1
|
%
|
|
|
|
Three Months Ended
|
|
|
||||||||
(in thousands, except percentages)
|
April 1, 2018
|
|
April 2, 2017
|
|
Change
|
||||||
Net Revenues
|
$
|
117,131
|
|
|
$
|
27,397
|
|
|
$
|
89,734
|
|
Segment Operating Income
|
12,948
|
|
|
4,384
|
|
|
8,564
|
|
|||
Segment Operating Margin
|
11.1
|
%
|
|
16.0
|
%
|
|
|
|
Three months ended
|
||||||
|
April 1, 2018
|
|
April 1, 2017
|
||||
(LOSS) INCOME BEFORE INCOME TAXES
|
$
|
(23,320
|
)
|
|
$
|
5,460
|
|
|
|
|
|
||||
U.S. tax rate
|
21.0%
|
|
|
35.0%
|
|
||
Intercompany financing
|
8.6%
|
|
|
-0.9%
|
|
||
Global Intangible Low-Taxed Income impact
|
-9.2%
|
|
|
0.0%
|
|
||
Non-taxable Refinery Valves purchase consideration
|
0.0%
|
|
|
-17.3%
|
|
||
Foreign Tax rate differential
|
-1.9%
|
|
|
-5.7%
|
|
||
US permanent differences
|
4.0
|
%
|
|
0.3
|
%
|
||
Other
|
2.9
|
%
|
|
1.8
|
%
|
||
Effective tax rate
|
25.2%
|
|
|
12.6%
|
|
||
|
|
|
|
||||
(Benefit from) provision for income taxes
|
$
|
(5,879
|
)
|
|
$
|
687
|
|
|
Cumulative Planned Savings
|
|
Cumulative Projected Savings
|
|
Expected Periods of Savings Realization
|
||||
2018 Actions
|
$
|
8.2
|
|
|
$
|
8.2
|
|
|
Q2 2018 - Q3 2019
|
2017 Actions
|
6.9
|
|
|
6.9
|
|
|
Q2 2017 - Q4 2018
|
||
Total Savings
|
$
|
15.1
|
|
|
$
|
15.1
|
|
|
|
|
April 1, 2018
|
|
April 2, 2017
|
||||
Cash flow provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
(145
|
)
|
|
$
|
16,195
|
|
Investing activities
|
(8,141
|
)
|
|
(1,344
|
)
|
||
Financing activities
|
20,240
|
|
|
(8,529
|
)
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
956
|
|
|
1,055
|
|
||
Increase in cash, cash equivalents and restricted cash
|
$
|
12,910
|
|
|
$
|
7,377
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 6.
|
EXHIBITS
|
|
|
|
CIRCOR INTERNATIONAL, INC.
|
|
|
May 10, 2018
|
/s/ Scott A. Buckhout
|
|
Scott A. Buckhout
|
|
President and Chief Executive Officer
|
|
Principal Executive Officer
|
|
|
May 10, 2018
|
/s/ Rajeev Bhalla
|
|
Rajeev Bhalla
|
|
Executive Vice President, Chief Financial Officer
|
|
Principal Financial Officer
|
|
|
May 10, 2018
|
/s/ David F. Mullen
|
|
David F. Mullen
|
|
Vice President and Corporate Controller
|
|
Principal Accounting Officer
|
1 Year CIRCOR Chart |
1 Month CIRCOR Chart |
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