Crane Company · NYSE:CR
Crane — Q2 2022 Earnings Presentation
25 slides from Crane's earnings presentation, Jul 26, 2022
Slide 1: Crane Q2 2022 Earnings Release Call
CRANE Q2 2022 Earnings Release Call
Slide 2: Forward-Looking Statements – Disclaimer
FORWARD-LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, inclu
Slide 3: Forward-Looking Statements – Disclaimer
FORWARD-LOOKING STATEMENTS – DISCLAIMER Readers should carefully review Crane’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Crane’s Annual Report on Form 10-K for the year ended December 31, 2021 and the other documents Crane and its subsi
Slide 4: Q2 2022 Earnings Summary and Highlights
Q2 2022 EARNINGS SUMMARY AND HIGHLIGHTS $ Millions except per-share amounts Q2 2022 Q2 2021 Change Sales $864 $856 +1% Operating Profit* $145 $148 (2%) Operating Margin* 16.8% 17.3% (50 bps) Earnings per Share* $1.90 $1.93 (2%) Free Cash Flow** $92 $147 (37%) Additional Details Q2 2022 Q2 2022 Core
Slide 5: 1H 2022 Earnings Summary and Highlights
1H 2022 EARNINGS SUMMARY AND HIGHLIGHTS $ Millions except per-share amounts 1H 2022 1H 2021 Change Sales $1,736 $1,689 +3% Operating Profit* $300 $282 +6% Operating Margin* 17.3% 16.7% +60 bps Earnings per Share* $3.89 $3.59 +8% Free Cash Flow** $24 $192 (88%) Additional Details 1H 2022 1H 2022 Core
Slide 6: Aerospace & Electronics
AEROSPACE & ELECTRONICS $ Millions except per-share amounts Q2 2022 Q2 2021 Change Sales $162 $158 +3% Operating Profit $28 $31 (8%) Operating Margin 17.5% 19.6% (210 bps) Backlog $534 $473 +13% Additional Details Q2 2022 Q2 2022 OE Sales +1% Core Growth +2.8% Aftermarket Sales +7% FX Translation (0
Slide 7: Aerospace & Electronics
AEROSPACE & ELECTRONICS $ Millions except per-share amounts 1H 2022 1H 2021 Change Sales $319 $312 +2% Operating Profit $56 $57 (1%) Operating Margin 17.6% 18.2% (60 bps) Backlog $534 $473 +13% Additional Details 1H 2022 1H 2022 OE Sales Flat Core Growth +2.5% Aftermarket Sales +9% FX Translation (0
Slide 8: Process Flow Technologies
PROCESS FLOW TECHNOLOGIES $ Millions except per-share amounts Q2 2022 Q2 2021 Change Sales $296 $311 (5%) Operating Profit* $46 $49 (6%) Operating Margin* 15.6% 15.7% (10 bps) Backlog $349 $344 +1% Additional Details Q2 2022 ▪ Compared to Q1 2022, sequential core FX neutral backlog up +5% and core F
Slide 9: Process Flow Technologies
PROCESS FLOW TECHNOLOGIES $ Millions except per-share amounts 1H 2022 1H 2021 Change Sales $607 $599 +1% Operating Profit* $97 $88 +10% Operating Margin* 16.0% 14.7% +130 bps Backlog $349 $344 +1% Additional Details 1H 2022 ▪ Compared to 2H 2021, sequential core FX neutral backlog up +9% and core FX
Slide 10: Payment & Merchandising Technologies
PAYMENT & MERCHANDISING TECHNOLOGIES $ Millions except per-share amounts Q2 2022 Q2 2021 Change Sales $334 $328 +2% Operating Profit* $81 $78 +4% Operating Margin* 24.2% 23.7% +50 bps Q2 2022 Core Growth +6.9% FX Translation (5.1%) Total Sales Change +1.8% 10 * Excludes Special Items. Please see non
Slide 11: Payment & Merchandising Technologies
PAYMENT & MERCHANDISING TECHNOLOGIES $ Millions except per-share amounts 1H 2022 1H 2021 Change Sales $667 $666 +0% Operating Profit* $165 $163 +1% Operating Margin* 24.7% 24.5% +20 bps 1H 2022 Core Growth +4.1% FX Translation (3.9%) Total Sales Change +0.2% 11 * Excludes Special Items. Please see n
Slide 12: Engineered Materials
ENGINEERED MATERIALS $ Millions except per-share amounts Q2 2022 Q2 2021 Change Sales $73 $59 +23% Operating Profit* $11 $8 +40% Operating Margin* 14.8% 13.0% +180 bps Additional Details Q2 2022 Q2 2022 Recreational Vehicle Sales +30% Core Growth +23.2% Building Products Sales +20% FX Translation -
Slide 13: Engineered Materials
ENGINEERED MATERIALS $ Millions except per-share amounts 1H 2022 1H 2021 Change Sales $143 $113 +27% Operating Profit* $24 $14 +68% Operating Margin* 16.6% 12.5% +410 bps Additional Details 1H 2022 1H 2022 Recreational Vehicle Sales +38% Core Growth +26.6% Building Products Sales +23% FX Translation
Slide 14: Cash Flow, Balance Sheet and Tax
CASH FLOW, BALANCE SHEET AND TAX $ Millions except per-share amounts Q2 2022 Q2 2021 Better / (Worse) Cash Provided from Operating Activities $105 $157 ($52) Capital Expenditures ($12) ($10) ($3) Free Cash Flow* $92 $147 ($55) Effective (GAAP) Tax Rate 26.1% 3.5% (2,260 bps) Non-GAAP (adjusted) Tax
Slide 15: 2022 Guidance Summary
2022 GUIDANCE SUMMARY $ Millions except per share amounts 2022G 2021 Change*** Earnings per Share* $7.45-$7.85 $6.88 +11% Adjusted Free Cash Flow** $350-$390 $445 (17%) 2022G Other 2022 Guidance Details Core Growth +5% to +6% ▪ Adjusted tax rate of ~21% ▪ Diluted share count of ~57 million ▪ Corpora
Slide 16: Proposed Separation: Next Steps and Timing
PROPOSED SEPARATION: NEXT STEPS AND TIMING ▪ Will provide additional information in Form 10 Registration Statement ▪ Search process for Crane NXT CEO is underway, including evaluation of internal and external candidates ▪ Board composition and extended leadership teams of both companies will be anno
Slide 17: Non-GAAP Information
NON-GAAP INFORMATION JULY 26, 2022
Slide 18: Non-GAAP Explanation (1/2)
NON-GAAP EXPLANATION (1/2) Crane Holdings, Co. reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This presentation includes certain non- GAAP financial measures, including adjusted operating profit, adjusted operating margin, adjusted EPS, and F
Slide 19: Non-GAAP Explanation (2/2)
NON-GAAP EXPLANATION (2/2) We believe that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations: ▪ Operating Profit before Special Items (“Adjusted Operating Profit”) and Operating Margin before Special Items (“A
Slide 20: Non-GAAP Financial Measures (Income Items 1/2)
NON-GAAP FINANCIAL MEASURES (INCOME ITEMS 1/2) (in millions, except per share data) Three Months Ended June 30, 2022 2021 % Change $ Per Share $ Per Share (on $) Net sales (GAAP) $ 864.3 $ 855.5 1.0 % Operating profit (GAAP) $ 124.4 $ 144.6 (14.0)% Operating profit margin (GAAP) 14.4 % 16.9 % Specia
Slide 21: Non-GAAP Financial Measures (Income Items 2/2)
NON-GAAP FINANCIAL MEASURES (INCOME ITEMS 2/2) (in millions, except per share data) Six Months Ended June 30, 2022 2021 % Change $ Per Share $ Per Share (on $) Net sales (GAAP) $ 1,735.7 $ 1,688.9 2.8 % Operating profit (GAAP) $ 271.4 $ 291.0 (6.7)% Operating profit margin (GAAP) 15.6 % 17.2 % Speci
Slide 22: Non-GAAP Financial Measures (Segment Data 1/2)
NON-GAAP FINANCIAL MEASURES (SEGMENT DATA 1/2) (in millions) Payment & Aerospace & Process Flow Merchandising Engineered Total Three Months Ended June 30, 2022 Electronics Technologies Technologies Materials Corporate Company Net sales (GAAP) $ 161.5 $ 296.0 $ 334.0 $ 72.8 $ — $ 864.3 Operating prof
Slide 23: Non-GAAP Financial Measures (Segment Data 2/2)
NON-GAAP FINANCIAL MEASURES (SEGMENT DATA 2/2) (in millions) Payment & Aerospace & Process Flow Engineered Total Merchandising Six Months Ended June 30, 2022 Electronics Technologies Materials Corporate Company Technologies Net sales (GAAP) $ 318.6 $ 607.4 $ 666.6 $ 143.1 $ — $ 1,735.7 Operating pro
Slide 24: Non-GAAP Financial Measures (Guidance/Cash Flow)
NON-GAAP FINANCIAL MEASURES (GUIDANCE/CASH FLOW) Full Year Guidance (in millions, except per share data) 2022 Earnings per Share Guidance Low High Earnings per diluted share (GAAP) $ 9.80 $ 10.20 Special items impacting earnings per share (2.35) (2.35) Earnings per diluted share before special items
Slide 25: Jason D. Feldman, Vice President, Investor Relations
Jason D. Feldman Vice President, Investor Relations 203-363-7329