Enovis Corporation · NYSE:ENOV
Enovis — Colfax — Q2 2017 Earnings Presentation
19 slides from Enovis's earnings presentation, 2017
Slide 1: Second Quarter 2017 Earnings Conference Call
SECOND QUARTER 2017 | EARNINGS CONFERENCE CALL
Slide 2: Important Statements
Important 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 plans,
Slide 3: Q2 2017 Highlights
Q2 2017 Highlights ▪ Achieved financial performance expectations ▪ Delivering growth on internal initiatives and improving end markets ▪ Structural cost reductions improving margins ▪ Strengthening the Fabrication Technology product portfolio with technology focused M&A 3
Slide 4: Back to Growth
Back to Growth ▪ 4 quarters of strong Gas & Fluid Orders and Sales Handling orders growth (YOY Organic Growth) 15% − Success penetrating industrial applications such as transportation and G&FH Orders 10% cement 5% − Improving markets in General Industrial, FabTech Sales Mining, and Oil & Gas 0% 3Q16
Slide 5: Leveraging Industrial Fans Globally
Leveraging Industrial Fans Globally Transportation System Cooling Fans ▪ $200M global market growing at 4% across Asia − driven by urbanization and demand for cleaner, more efficient transport − Transition to electric locomotion ▪ Proven solutions with key European and NA OEM’s ▪ Manufacturing capab
Slide 6: Colfax on Path to Segment Mid-teen Margins
Colfax on Path to Segment Mid-teen Margins ▪ 50 bps improvement in Q2 Adj. Operating Margin Improvement (1st Half AOP Margin) Adjusted Operating Profit Margin 12.2% ▪ On track to deliver incremental 10.9% $50M savings in 2017 9.2% ▪ Price management, productivity, 8.6% and engineering improvements l
Slide 7: Accelerating Technology Leadership Inorganically
Accelerating Technology Leadership Inorganically TBi: manual and robotic torches • Acquiring leading technology and talent in key application areas • Creating optimized welding systems − TBi, a recognized leader in robotic torch technology, to complement with ESAB power supply and process expertise
Slide 8: Q2 2017 Financial Highlights
Q2 2017 Financial Highlights (Millions, except EPS) Q2 2016 Q2 2017 G&FH Orders $432.6 $457.8 ▪ Strong G&FH order growth Total Sales $957.2 $965.8 ▪ FabTech revenue growth offset the expected G&FH volume decline Gross Profit $301.1 $300.7 % of sales 31.5% 31.1% ▪ Price management and productivity la
Slide 9: Fabrication Technology Q2 2017 Results
Fabrication Technology Q2 2017 Results Sales Adjusted Operating Profit & Margin $494.8 $473.5 $60.8 Volume 0.1% $54.5 Price/ Mix 2.0% 10.9% 12.3% 11.5% 8.7% Acquisitions 2.3% FX Translation 0.1% Q2 2016 Q2 2017 Total Change 4.5% Q2 2016 Q2 2017 Geographic Consumable ▪ Organic growth in most regions
Slide 10: Gas & Fluid Handling Q2 2017 Results
Gas & Fluid Handling Q2 2017 Results Orders Backlog $432.6 $457.8 $1,068.9 $1,096.1 Existing Existing 7.5% 2.3% Businesses Businesses Acquisitions -% Acquisitions -% FX Translation (1.7)% FX Translation 0.2% Q2 2016 Q2 2017 Total Increase 5.8% Q2 2016 Q2 2017 Total Change 2.5% Revenue Profile YTD ▪
Slide 11: Gas & Fluid Handling Q2 2017 Results (continued)
Gas & Fluid Handling Q2 2017 Results (continued) Sales Adjusted Operating Profit & Margin $483.7 $471.0 $45.1 $46.4 Existing 9.1% 9.9% 10.9% (1.2)% 9.3% Businesses 8.7% Acquisitions -% 5.5% FX Translation (1.4)% Q2 2016 Q2 2017 Total Change (2.6)% Q2 2016 Q2 2017 Geographic Exposure YTD ▪ Orders per
Slide 12: Outlook
Outlook ▪ Back to growth in an improving market environment ▪ Improving cost structure furthers progress toward mid- teen margin goal for business segments ▪ Active M&A pipeline focused on accelerating growth initiatives ▪ Improving 2017 Adjusted EPS guidance range to $1.65 to $1.75 12
Slide 13: Appendix
COLFAX — = ss
Slide 14: YTD 2017 Gas & Fluid Handling Sales and Orders by End Market
YTD 2017 Gas & Fluid Handling Sales and Orders by End Market Sales: $855.9 million Orders: $903.0 million Power General Industrial Power Generation 32% Generation General Industrial 31% 34% 36% Mining 6% Oil, Gas, & Mining Oil, Gas, & Marine Petrochemical 5% Marine Petrochemical 11% 17% 8% 20% Total
Slide 15: Change in Sales, Orders and Backlog
Change in Sales, Orders and Backlog (unaudited) Gas and Fluid Handling Net Sales Orders $ % $ % For the three months ended July 1, 2016 $ 957.2 $ 432.6 Components of Change: Existing Businesses(1) 4.4 0.5% 32.4 7.5% Acquisitions(2) 10.8 1.1% — —% Foreign Currency Translation (6.6) (0.7)% (7.2) (1.7)
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation (unaudited) Three Months Ended June 30, 2017 Three Months Ended July 1, 2016 Gas and Fluid Fabrication Corporate Total Colfax Gas and Fluid Fabrication Corporate Total Colfax Handling Technology and Other Corporation Handling Technology and Other Corporation Net sales $ 471,0
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation (unaudited) Three Months Ended Six Months Ended June 30, 2017 July 1, 2016 June 30, 2017 July 1, 2016 Adjusted Net Income and Adjusted Net Income Per Share Net income attributable to Colfax Corporation 53,394 $ 39,754 $ 91,936 $ 62,369 Restructuring and other related items 47
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation (unaudited) Three Months Ended June 30, 2017 July 1, 2016 Net income $ 58,475 $ 43,963 Interest expense 8,418 8,711 Provision for income taxes 25,110 20,388 Depreciation and amortization 32,425 33,555 Restructuring and other related items 471 14,490 Adjusted EBITDA $ 124,899
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation (unaudited) 2017 EPS Range Projected net income per share – diluted $ 1.45 $ 1.55 0.28 0.28 Restructuring costs(1) Tax Adjustment (0.08) (0.08) Projected adjusted net income per share - diluted $ 1.65 $ 1.75 __________ (1) Restructuring costs include a $12 million gain on dis