Capital One Financial (TG:CFX)
Historical Stock Chart
From Aug 2019 to Aug 2024
![Click Here for more Capital One Financial Charts. Click Here for more Capital One Financial Charts.](/p.php?pid=staticchart&s=TG%5ECFX&p=8&t=15)
Record Sales and Orders Drive Strong Performance in 2008
RICHMOND, Va., Feb. 20 /PRNewswire-FirstCall/ -- Colfax Corporation (NYSE: CFX), a global leader in engineered fluid handling products and systems, today announced financial results for the fourth quarter and full year ended December 31, 2008. On a year-over-year basis, highlights for the quarter and the year include:
Fourth quarter of 2008 (all comparisons versus the fourth quarter of 2007)
-- Net income of $10.4 million (24 cents per share - basic and diluted);
Adjusted net income (as defined below) of $17.5 million (40 cents per
share), an increase of 19.1%
-- Net sales of $159.3 million, an increase of 10.9%; Organic sales
growth (as defined below) of 19.1%
-- Operating income of $21.7 million; Adjusted operating income (as
defined below) of $28.6 million, an increase of 14.9%
-- EBITDA (as defined below) of $25.2 million; Adjusted EBITDA (as
defined below) of $32.1 million, an increase of 10.8%
-- Fourth quarter orders of $126.3 million, a decrease of 19.3%; Organic
order decline (as defined below) of 15.8%
-- Backlog of $337.3 million at period end
Full year 2008 (all comparisons versus 2007)
-- Net loss of $0.6 million (11 cents per share - basic and diluted);
Adjusted net income (as defined below) of $53.7 million ($1.22 per
share), an increase of 32.8%
-- Net sales of $604.9 million, an increase of 19.5%; Organic sales
growth (as defined below) of 13.9%
-- Operating income of $16.7 million; Adjusted operating income (as
defined below) of $90.8 million, an increase of 24.5%
-- EBITDA (as defined below) of $31.5 million; Adjusted EBITDA (as
defined below) of $105.6 million, an increase of 19.8%
-- Record orders for the year of $669.2 million, an increase of 15.1%;
Organic order growth (as defined below) of 7.0%
Adjusted net income, adjusted net income per share, adjusted operating income, EBITDA, adjusted EBITDA, organic sales growth and organic order growth are not financial measures calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP"). See below for a description of the measures' usefulness and a reconciliation of these measures to their most directly comparable GAAP financial measures.
"We had an excellent fourth quarter," said John Young, president and CEO of Colfax Corporation. "Our strong results were driven by organic sales growth of 19% and a 210 basis point improvement in gross profit margin. We also delivered record results for the year, including organic sales growth of 14%, in line with our low double-digit growth expectation. Sales growth was lead by increased demand in the power generation, commercial marine and general industrial end markets. We are well positioned heading into 2009, with a higher backlog than we had at the beginning of 2008."
He continued, "Despite our recent performance and our relatively strong backlog, we expect that the second half of the year could be very challenging if current economic conditions persist. We remain cautious on our outlook but continue to expect organic sales growth in the range of 1% to 3% and adjusted earnings per share of $1.10 to $1.17 for 2009. Our focus continues to be on growing the business through expanding our served markets, executing on our breakthrough initiatives and pursuing acquisitions while controlling costs. Our strong financial position allows us to be flexible as well as opportunistic. We believe that the long-term fundamentals of our end markets including the need for infrastructure and energy worldwide bode well for our fluid-handling products and solutions."
Non-GAAP Financial Measures
Colfax has provided in this press release financial information that has not been prepared in accordance with GAAP. These non-GAAP financial measures are adjusted net income, adjusted net income per share, adjusted operating income, EBITDA, adjusted EBITDA, organic sales growth and organic order growth. Adjusted net income, adjusted net income per share, adjusted operating income and adjusted EBITDA exclude asbestos liability and defense cost (income) and asbestos coverage litigation expense, certain legacy legal charges, certain due diligence costs, as well as one time initial public offering-related costs. Adjusted net income also reflects interest expense as if the initial public offering (IPO) had occurred at the beginning of 2007 and presents income taxes at an effective tax rate of 34%. Adjusted net income per share assumes the 44,006,026 shares outstanding at the closing of the IPO to be outstanding since January 1, 2007. Organic sales growth and organic order growth exclude the impact of acquisitions and foreign exchange rate fluctuations. These non-GAAP financial measures assist Colfax in comparing its operating performance on a consistent basis because, among other things, they remove the impact of changes in our capital structure and asset base, non-recurring items such as IPO-related costs, legacy asbestos issues (except in the case of EBITDA) and items outside the control of its operating management team.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.
Conference Call and Webcast
Colfax will host a conference call to provide details about its results and business strategy on Friday, February 20 at 8:00 a.m. EST. The call will be open to the public through 719-325-4744 or 877-723-9518 and webcast via Colfax's website at http://www.colfaxcorp.com/ under the "Investor Relations" section. Access to a supplemental slide presentation can also be found at the Colfax website under the same heading. Both the audio of this call and the slide presentation will be archived on the website later today and will be available until the next quarterly call. In addition, a replay of this call will be available until approximately March 6, 2009. The replay number in the U.S. is 888-203-1112 and internationally it is 719-457-0820, and the access code is 4053059.
About Colfax Corporation
Colfax Corporation is a global leader in critical fluid-handling solutions, including the manufacture of positive displacement industrial pumps and valves used in global oil & gas, power generation, marine, naval and a variety of other industrial applications. Key product brands include Allweiler, Fairmount Automation, Houttuin, Imo, LSC, Portland Valve, Tushaco, Warren and Zenith. Colfax is traded on the NYSE under the ticker "CFX." Additional information about Colfax's products, businesses and practices is available at http://www.colfaxcorp.com/
Cautionary Note Concerning Forward Looking Statements
This press release contains forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning Colfax's plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on Colfax's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause Colfax's results to differ materially from current expectations include, but are not limited to factors detailed in Colfax's reports filed with the U.S. Securities and Exchange Commission as well as its Registration Statement on Form S-1 under the caption "Risk Factors". In addition, these statements are based on a number of assumptions that are subject to change. This press release speaks only as of this date. Colfax disclaims any duty to update the information herein.
COLFAX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(amounts in thousands, except per share data)
Three Months Ended Year Ended
------------------ ----------
December 31, December 31, December 31, December 31,
2008 2007 2008 2007
---- ---- ---- ----
Net sales $159,311 $143,703 $604,854 $506,305
Cost of sales 101,557 94,488 387,667 330,714
------- ------ ------- -------
Gross profit 57,754 49,215 217,187 175,591
Initial public
offering-
related costs -- -- 57,017 --
Selling, general
and administrative
expenses 27,718 23,223 125,234 98,500
Research and
development
expenses 1,426 1,087 5,856 4,162
Asbestos liability
and defense
(income) costs 1,978 (31,946) (4,771) (63,978)
Asbestos coverage
litigation expenses 4,905 5,314 17,162 13,632
----- ----- ------ ------
Operating income 21,727 51,537 16,689 123,275
Interest expense 2,138 4,830 11,822 19,246
----- ----- ------ ------
Income before
income taxes 19,589 46,707 4,867 104,029
Provision for
income taxes 9,210 17,715 5,438 39,147
----- ------ ----- ------
Net income (loss) $10,379 $28,992 $(571) $64,882
======= ======= ===== =======
Net income (loss)
available to
common shareholders
per share -
basic and diluted $0.24 $0.77 $(0.11) $1.79
===== ===== ====== =====
COLFAX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
Preliminary and Unaudited
(amounts in thousands)
December 31,
------------
2008 2007
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $28,762 $48,093
Trade receivables, less allowance
for doubtful accounts 101,064 84,430
Inventories, net 80,327 68,287
Asbestos insurance asset 26,473 19,059
Asbestos insurance receivable 36,371 44,664
Other current assets 21,860 22,534
------ ------
Total current assets 294,857 287,067
Deferred income taxes, net 53,428 36,447
Property, plant and equipment, net 92,090 88,391
Goodwill and intangible assets, net 179,046 185,353
Long-term asbestos insurance asset 277,542 286,169
Deferred loan costs, pension
and other assets 16,113 13,113
------ ------
Total assets $913,076 $896,540
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt
and capital leases $5,420 $2,640
Accounts payable 52,138 48,910
Accrued asbestos liability 28,574 28,901
Other accrued liabilities 68,154 67,923
------ ------
Total current liabilities 154,286 148,374
Long-term debt, less current portion 91,701 203,853
Long-term dividend payable to shareholders -- 35,054
Long-term asbestos liability 328,684 347,332
Pension and accrued post-retirement benefits 130,188 71,365
Other liabilities 41,286 37,511
------ ------
Total liabilities 746,145 843,489
Shareholders' equity 166,931 53,051
------- ------
Total liabilities and shareholders' equity $913,076 $896,540
======== ========
COLFAX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Preliminary and Unaudited
(amounts in thousands)
Year ended
December 31,
-------------
2008 2007
---- ----
Cash flows from operating activities:
Net (loss) income $(571) $64,882
Adjustments to reconcile net (loss) income
to cash (used in) provided by
operating activities:
Depreciation and amortization 14,788 15,239
Noncash stock-based compensation 11,330 --
Write off of deferred loan costs 4,614 --
Other adjustments for non-cash items 994 1,609
Deferred income taxes (13,357) 22,186
Changes in working capital (27,680) 3,344
Changes in other operating assets
and liabilities (21,631) (32,777)
------- -------
Net cash (used in) provided by
operating activities (31,513) 74,483
Cash flows from investing activities:
Purchases of fixed assets (20,113) (13,671)
Acquisitions, net of cash received (439) (32,987)
Proceeds from sale of fixed assets 23 133
-- ---
Net cash used in investing activities (20,529) (46,525)
Cash flows from financing activities:
Borrowings under term credit facility 100,000 55,000
Payments under term credit facility (210,278) (11,791)
Proceeds from borrowings on
revolving credit facilities 28,185 58,000
Repayments of borrowings on
revolving credit facilities (28,158) (86,500)
Proceeds from the issuance of
common stock, net of offering costs 193,020 --
Repurchases of common stock (5,731) --
Dividends paid to preferred shareholders (38,546) --
Other (3,656) (2,972)
------ ------
Net cash provided by financing activities 34,836 11,737
Effect of exchange rates on cash (2,125) 790
------ ---
(Decrease) increase in cash and cash
equivalents (19,331) 40,485
Cash and cash equivalents, beginning of year 48,093 7,608
------ -----
Cash and cash equivalents, end of year $28,762 $48,093
======= =======
COLFAX CORPORATION
Reconciliation of GAAP to non-GAAP Financial Measures
Unaudited
(dollars in thousands, except per share data)
Three Months Ended Year Ended
------------------ ----------
December 31, December 31, December 31, December 31,
2008 2007 2008 2007
---- ---- ---- ----
EBITDA
Net income (loss) $10,379 $28,992 $(571) $64,882
Interest expense 2,138 4,830 11,822 19,246
Provision for income
taxes 9,210 17,715 5,438 39,147
Depreciation and
amortization 3,443 4,034 14,788 15,239
----- ----- ------ ------
EBITDA $25,170 $55,571 $31,477 $138,514
======= ======= ======= ========
EBITDA margin 15.8% 38.7% 5.2% 27.4%
Adjusted EBITDA
Net income (loss) $10,379 $28,992 $(571) $64,882
Interest expense 2,138 4,830 11,822 19,246
Provision for income
taxes 9,210 17,715 5,438 39,147
Depreciation and
amortization 3,443 4,034 14,788 15,239
IPO-related costs -- -- 57,017 --
Legacy legal adjustment -- -- 4,131 --
Due diligence costs -- -- 582 --
Asbestos liability and
defense (income) costs 1,978 (31,946) (4,771) (63,978)
Asbestos coverage
litigation expense 4,905 5,314 17,162 13,632
----- ----- ------ ------
Adjusted EBITDA $32,053 $28,939 $105,598 $88,168
======= ======= ======== =======
Adjusted EBITDA margin 20.1% 20.1% 17.5% 17.4%
Adjusted Net Income
and Adjusted Earnings
per Share
Net income (loss) $10,379 $28,992 $(571) $64,882
IPO-related costs -- -- 57,017 --
Legacy legal adjustment -- -- 4,131 --
Due diligence costs -- -- 582 --
Asbestos liability and
defense (income) costs 1,978 (31,946) (4,771) (63,978)
Asbestos coverage
litigation expense 4,905 5,314 17,162 13,632
Interest adjustment to
effect IPO at
beginning of period -- 2,143 2,302 7,536
Tax adjustment to 34%
effective rate 210 10,161 (22,201) 18,333
--- ------ ------- ------
Adjusted net income $17,472 $14,664 $53,651 $40,405
======= ======= ======= =======
Adjusted net income
margin 11.0% 10.2% 8.9% 8.0%
Shares outstanding at
closing of IPO 44,006,026 44,006,026 44,006,026 44,006,026
Adjusted net income
per share $0.40 $0.33 $1.22 $0.92
===== ===== ===== =====
Net income (loss)
per share - basic
and diluted in
accordance with GAAP $0.24 $0.77 $(0.11) $1.79
===== ===== ====== =====
Adjusted Operating
Income Operating
income $21,727 $51,537 $16,689 $123,275
IPO-related costs -- -- 57,017 --
Legacy legal adjustment -- -- 4,131 --
Due diligence costs -- -- 582 --
Asbestos liability and
defense (income) costs 1,978 (31,946) (4,771) (63,978)
Asbestos coverage
litigation expense 4,905 5,314 17,162 13,632
----- ----- ------ ------
Adjusted operating
income $28,610 $24,905 $90,810 $72,929
======= ======= ======= =======
Adjusted operating
income margin 18.0% 17.3% 15.0% 14.4%
COLFAX CORPORATION
Sales and Order Growth
Unaudited
(amounts in millions)
Sales Orders
------ ------
$ % $ %
-- -- -- --
Three Months Ended December 31, 2007 $143.7 $156.5
Components of Growth:
Organic growth from existing businesses 27.4 19.1% (24.7) (15.8%)
Acquisitions 0.8 0.6% 3.1 2.0%
Foreign currency translation (12.6) (8.8%) (8.6) (5.5%)
---- -----
Total Growth 15.6 10.9% (30.2) (19.3%)
---- -----
Three Months Ended December 31, 2008 $159.3 $126.3
====== ======
Sales Orders
------ ------
$ % $ %
-- -- -- --
Year Ended December 31, 2007 $506.3 $581.5
Components of Growth:
Organic growth from existing businesses 70.2 13.9% 40.9 7.0%
Acquisitions 5.5 1.1% 11.7 2.0%
Foreign currency translation 22.9 4.5% 35.1 6.1%
---- ----
Total Growth 98.6 19.5% 87.7 15.1%
---- ----
Year Ended December 31, 2008 $604.9 $669.2
====== ======
COLFAX CORPORATION
Reconciliation of Projected 2009 Net Income Per Share to Adjusted
Net Income Per Share
Preliminary and Unaudited
(amounts in dollars)
EPS Range
---------
Projected 2009 net income per share - fully diluted $0.80 $0.87
Asbestos coverage litigation 0.28 0.28
Asbestos liability and defense costs 0.16 0.16
Income tax benefit at 32% (0.14) (0.14)
----- -----
Projected 2009 adjusted net income per share -
fully diluted $1.10 $1.17
===== =====
http://www.newscom.com/cgi-bin/prnh/20080508/DC21739LOGO
http://photoarchive.ap.org/
DATASOURCE: Colfax Corporation
CONTACT: Mitzi Reynolds, Vice President, Investor Relations of Colfax
Corporation, +1-804-327-5689
Web Site: http://www.colfaxcorp.com/