Slide 1: 3Q 2009 Preliminary Earnings Call
Exhibit 99.2 3Q 2009 Preliminary Earnings Call November 3, 2009
Slide 2: Preliminary Results
Preliminary Results The preliminary financial results reflect management’s best estimate of the Company’s net asbestos liability based upon information currently available. The preliminary results do not reflect any potential adjustments from the favorable asbestos ruling on October 14, 2009 for the
Slide 3: Forward-Looking Statements
Forward-Looking Statements The following information 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 p
Slide 4: Q3 2009 Highlights
Q3 2009 Highlights Adjusted net income of $10.0 million (23 cents per share) compared to $12.1 million (28 cents per share) in Q3 2008, including negative currency effects of 1 cent per share Net sales of $128.5 million compared to $153.5 million in Q3 2008, a decrease of 16.2% (organic decline of 1
Slide 5: Q3 2009 Highlights Continued
Q3 2009 Highlights Continued Lower results for Q3 2009 vs. Q3 2008 but held margin Organic sales down 12% overall driven by general industrial; strong growth in global navy (up 79%) and power generation (up 17%) Gross profit margin up 40 bps to 35.9% and adjusted EBITDA margin held at 15.7% Global b
Slide 6: YTD 2009 Highlights
YTD 2009 Highlights Adjusted net income of $28.9 million (67 cents per share) compared to $36.2 million (82 cents per share) in 2008, including negative currency effects of 10 cents per share Net sales of $394.1 million compared to $445.5 million in 2008, a decrease of 11.6% (organic decline of 2.5%
Slide 7: Profit Protection Plan Update
Profit Protection Plan Update Continuing to rightsize to align capacity with demand Major actions since the beginning of the year: Reduced temporary, contract and full-time employees (approximately 230 associates) Implemented furlough programs in Germany (approximately 628 associates, 100 full-time
Slide 8: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Revenue Adjusted EBITDA (1) $500.0 $80.0 $70.0 $400.0 $60.0 $300.0 $50.0 $445.5 $40.0 $73.5 $200.0 $394.1 $30.0 $58.5 $20.0 $100.0 $153.5 $128.5 $10.0 $24.0 $20.2 $0.0 $0.0 Q3 2008 Q3 2009 - YTD YTD Q3 2008 Q3 2009 - YTD YTD 2008 2009 2008 2009 Existing Businesses -- (12.
Slide 9: Orders and Backlog
Orders and Backlog Orders Backlog $600.0 $400.0 $500.0 $300.0 $400.0 $200.0 $384.0 $383.1 $300.0 $542.9 $353.6 $337.3 $292.8 $305.6 $292.3 $298.0 $200.0 $349.2 $100.0 $100.0 $173.8 $124.3 $0.0 $0.0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 2008 Q3 2009 YTD 2008 YTD 2009 2007 2008 2008 2008 2008 2009 2009 2009 Exis
Slide 10: Q3 2009 Sales and Orders by End Market
Q3 2009 Sales and Orders by End Market Sales: $128.5 million Orders: $124.3 million Global Navy Global Navy 11% 12% General General Power Industrial Industrial Generation 33% 34% Power 15% Generation 19% Oil & Gas 16% Oil & Gas 14% Commercial Commercial Marine Marine 25% 21% Total Growth Organic Gro
Slide 11: 2009 YTD Sales and Orders by End Market
2009 YTD Sales and Orders by End Market Sales: $394.1 million Orders: $349.2 million Global Navy 9% Global Navy 13% Power General Generation General Industrial Industrial 14% 34% Power 34% Generation 16% Oil & Gas 16% Oil & Gas 17% Commercial Commercial Marine Marine 20% 27% Total Growth Organic Gro
Slide 12: 2009 Q3 vs. Q2 Sales and Orders by End Market
2009 Q3 vs. Q2 Sales and Orders by End Market Sales Orders Total Growth Organic Growth Total Growth Organic Growth Commercial Marine (8)% (16)% Commercial Marine 36% 25% Oil & Gas (6)% (7)% Oil & Gas (27)% (28)% Power Generation 1% (2)% Power Generation 49% 44% Global Navy 40% 39% Global Navy 56% 55
Slide 13: Strong Financial Condition
Strong Financial Condition Strong balance sheet Debt to adjusted EBITDA - approximately 1X Debt of $93 million, principal payments of $9 million in 2010, matures in 2013 Cash = $51 million $136 million available on revolver Strong cash flow Adjusted EBITDA (LTM) of $84 million Note: As of 10/2/09 12
Slide 14: Preliminary Income Statement Summary
Preliminary Income Statement Summary Three Months Ended Delta October 2, 2009 September 26, 2008 $ % Orders $ 124.3 $ 173.8 $ (49.5) (28.5)% Sales $ 128.5 $ 153.5 $ (24.9) (16.2)% Gross Profit $ 46.2 $ 54.5 $ (8.3) (15.2)% % of Sales 35.9% 35.5% Adjusted SG&A Expenses $ 28.1 $ 32.7 $ (4.5) (13.8)% R
Slide 15: Preliminary Income Statement Summary
Preliminary Income Statement Summary Nine Months Ended Delta October 2, 2009 September 26, 2008 $ % Orders $ 349.2 $ 542.9 $ (193.7) (35.7)% Sales $ 394.1 $ 445.5 $ (51.5) (11.6)% Gross Profit $ 138.8 $ 159.4 $ (20.6) (12.9)% % of Sales 35.2% 35.8% Adjusted SG&A Expense $ 86.2 $ 92.8 $ (6.6) (7.1)%
Slide 16: Preliminary Statement of Cash Flows Summary
Preliminary Statement of Cash Flows Summary Nine Months Ended October 2, 2009 September 26, 2008 Net income (loss) $ 13.0 $ (11.0) Non-cash expenses 14.0 9.5 Change in working capital and accrued liabilities 6.1 (26.3) Other 0.9 (2.9) Total Operating Activities $ 34.0 $ (30.7) Capital expenditures $
Slide 17: 2009 Outlook Summary
2009 Outlook Summary Revenue Range 2009 Organic growth (1) (8)% To (10)% 2009 Total $515 million To $525 million EPS Range 2009 Net income per share $0.35 To $0.41 2009 Adjusted net income per share (2) $0.88 To $0.94 Assumptions Asbestos coverage litigation $12 million Asbestos liability and defens
Slide 18: Well Positioned for the Future
Well Positioned for the Future Proven Application Serving Fast Global Leader in Specialty Expertise in Solving Growing Infrastructure Fluid Handling Products Critical Customer Needs Driven End Markets Experienced Management Leading Brand Names Team in Place to Grow CBS-Driven Culture Focused Generat
Slide 19: Appendix
Colfax Appendix Q3 2009 Earnings Call 18
Slide 20: Disclaimer
Disclaimer Adjusted net income, adjusted net income per share, adjusted operating income and adjusted EBITDA exclude asbestos liability and defense costs (income) and asbestos coverage litigation expenses, certain legacy legal charges, certain due diligence costs, restructuring and other related cha
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1 (Preliminary and unaudited) Three Months Ended Nine Months Ended October 2, 2009 September 26, 2008 October 2, 2009 September 26, 2008 EBITDA Net income (loss) $ 1,819 $ 13,651 $ 13,046 $ (10,950) Interest expense 1,834 1,951 5,466 9,684 Provision (benefit) for income taxes
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1 (Preliminary and unaudited) Three Months Ended Nine Months Ended October 2, 2009 September 26, 2008 October 2, 2009 September 26, 2008 Adjusted Net Income and Adjusted Earnings per Share Net income (loss) $ 1,819 $ 13,651 $ 13,046 $ (10,950) Restructuring and other related
Slide 23: Sales & Order Growth
Sales & Order Growth Sales Orders $ % $ % Three Months Ended September 26, 2008 $ 153.5 $ 173.8 Components of Change: Existing Businesses (18.4) (12.0)% (44.3) (25.5)% Acquisitions 0.5 0.3 % 0.4 0.2 % Foreign Currency Translation (7.1) (4.6)% (5.6) (3.2)% Total (25.0) (16.2)% (49.5) (28.5)% Three Mo
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Nine Months Ended October 2, 2009 September 26, 2008 October 2, 2009 September 26, 2008 Adjusted SG&A Expense Selling, general and administrative expenses $ 28,136 $ 33,233 $ 86,248 $ 97,516 Legacy legal adjustment - - - 4,131 Due diligence costs - 582 - 58
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Colfax Corporation Reconciliation of Projected 2009 Net Income Per Share1 to Adjusted Net Income Per Share Amounts in Dollars (unaudited) EPS Range Projected net income per share - fully diluted $ 0.35 $ 0.41 Restructuring and other related charges incurred year-to-date 0.17