Crane Company · NYSE:CR
Crane — Q1 2024 Earnings Presentation
22 slides from Crane's earnings presentation, Apr 23, 2024
Slide 1: Crane Q1 2024 Earnings Release Call
CRANE Q1 2024 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: Two Extremely Well Positioned Growth Platforms
TWO EXTREMELY WELL POSITIONED GROWTH PLATFORMS Crane At-a-Glance ($ millions) 2024G 2024G Adjusted Operating Profit* Sales $2,292 Engineered Materials 7% Adjusted EBITDA* $445 Process Flow % of Sales 19.4% Aerospace & 50% Technologies Electronics 43% Adjusted Operating Profit* $395 % of Sales 17.2%
Slide 4: Acquisition of CryoWorks
ACQUISITION OF CRYOWORKS ▪ Purchase price: $61M before tax step-up benefit By End Market (2023) ▪ Full-Year 2023 (estimate): Sales ~$28M / Adjusted EBITDA ~$5M Space & Medical Rocket Launch ▪ Year 5 (2028) forecast: ROIC >10% / ~$0.10 Cash EPS accretion* 19% 9% ▪ Principle Location: Jurupa Valley, C
Slide 5: Highlights from First Quarter 2024 Results
HIGHLIGHTS FROM FIRST QUARTER 2024 RESULTS $ Millions GAAP Adjusted* except per-share amounts Q1 2024 Q1 2023 Change Q1 2024 Q1 2023 Change Sales $565 $514 +10% $565 $514 +10% Operating Profit $89 $78 +15% $97 $91 +6% Operating Margin 15.8% 15.1% +70 bps 17.1% 17.7% (60 bps) Earnings per Share $1.12
Slide 6: Aerospace & Electronics
AEROSPACE & ELECTRONICS $ Millions GAAP Adjusted* Q1 2024 Q1 2023 Change Q1 2024 Q1 2023 Change Sales $226 $180 +25% $226 $180 +25% Operating Profit $48 $38 +28% $51 $38 +35% Operating Margin 21.4% 20.9% +50 bps 22.4% 20.9% +150 bps Backlog $792 $645 +23% $792 $645 +23% Additional Details Q1 2024 Q1
Slide 7: Process Flow Technologies
PROCESS FLOW TECHNOLOGIES $ Millions GAAP Adjusted* Q1 2024 Q1 2023 Change Q1 2024 Q1 2023 Change Sales $284 $271 +5% $284 $271 +5% Operating Profit $57 $63 (10%) $59 $64 (7%) Operating Margin 20.0% 23.3% (330 bps) 20.8% 23.4% (260 bps) Backlog $393 $363 +8% $393 $363 +8% Additional Details Q1 2024
Slide 8: Engineered Materials
ENGINEERED MATERIALS $ Millions GAAP Q1 2024 Q1 2023 Change Sales $55 $62 (12%) Operating Profit $8 $11 (29%) Operating Margin 14.7% 18.3% (360 bps) Additional Details Q1 2024 Q1 2024 Recreational Vehicle Sales (6%) Core Growth (11.6%) Building Products Sales (11%) FX Translation - Transportation Sa
Slide 9: Crane Company Post-Separation Capital Structure
CRANE COMPANY POST-SEPARATION CAPITAL STRUCTURE As of March 31, 2024 Additional Details ▪ Expect to finance CryoWorks with cash-on-hand and ~$909 Million drawing on Revolving Credit Facility ~0.3x Net Liquidity ▪ 2024 Guidance adjusted EBITDA of ~$445 million Debt-to-EBITDA implies net Debt-to-EBITD
Slide 10: Capital Deployment Potential
CAPITAL DEPLOYMENT POTENTIAL ~$4 Billion Available from 2023-2028 ~$4 Billion Available for M&A and/or repurchases while retaining strong, target credit metrics Incremental Debt Capacity M&A and/or Post-Separation Acquisitions To Date Repurchases Operating Cash Flow Dividends Capital Expenditures So
Slide 11: Disciplined Capital Allocation Strategy
DISCIPLINED CAPITAL ALLOCATION STRATEGY Maintain Strong Credit Metrics and Flexible Balance Sheet While Funding: Internal Investments Acquisitions Competitive to Drive Organic Growth to Enhance Growth Returns to Shareholders ▪ Capital expenditures ▪ Pursuing bolt-on transactions ▪ Target dividend pa
Slide 12: Long-Term Vision for Strategic Growth Platforms
LONG-TERM VISION FOR STRATEGIC GROWTH PLATFORMS Today 2028F ~$2.3B Sales / High-Teens Adjusted EBITDA Margin / ~$4B Sales / 20%+ Adjusted EBITDA Margin / MSD Growth HSD Growth A&E PFT A&E PFT ▪ Focus on high-return acquisitions that create value for shareholders and improve the strength of our strat
Slide 13: Crane Company Revised Operational Guidance
CRANE COMPANY REVISED OPERATIONAL GUIDANCE Additional Details Prior Revised ($ millions) GAAP Adjusted (1/29/24) (4/22/24) 2024G vs. 2023A Adjusted ▪ Aerospace & Electronics Sales 2023A 2023A* 2024G 2024G Change FX M&A Core Aerospace & Electronics 789 789 904 920 16.6% - 4.5% 12% ▪ Recovery continue
Slide 14: Crane Company Revised EPS Guidance
CRANE COMPANY REVISED EPS GUIDANCE Prior Revised ($ millions, except per-share amounts) GAAP Adjusted (1/29/24) (4/22/24) Additional Details Guidance 2023A 2023A 2024G 2024G Segment Operating Profit 401 406 451 470 ▪ Adjusted EPS guidance of $4.75-$5.05 Corporate (117) (76) (75) (75) Operating Profi
Slide 15: Non-GAAP Information and Appendix
NON-GAAP INFORMATION AND APPENDIX APRIL 22, 2024
Slide 16: Non-GAAP Explanation (1/2)
NON-GAAP EXPLANATION (1/2) Crane Company 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, Free Cash Fl
Slide 17: 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: ▪ "Adjusted Operating Profit" and "Adjusted Operating Margin" add back to Operating Profit items which are outside
Slide 18: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures (unaudited, in millions, except per share data) Three Months Ended March 31, 2024 2023 % Change $ Per Share $ Per Share (on $) Net sales (GAAP) $ 565.3 $ 513.8 10.0 % Adjusted Operating Profit and Adjusted Operating Profit Margin Operating prof
Slide 19: Non-GAAP Financial Measures by Segment
NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures by Segment (unaudited, in millions) Aerospace & Process Flow Engineered Total Three Months Ended March 31, 2024 Electronics Technologies Materials Corporate Company Net sales $ 225.9 $ 284.3 $ 55.1 $ — $ 565.3 Operating profit (GAAP) $ 48.3 $ 5
Slide 20: Adjusted Free Cash Flow
NON-GAAP FINANCIAL MEASURES Adjusted Free Cash Flow (unaudited, in millions) Three Months Ended March 31, Cash Flow Items 2024 2023 Cash used for operating activities from continuing operations $ (79.9) $ (105.4) Less: Capital expenditures (9.1) (8.9) Free cash flow $ (89.0) $ (114.3) Adjustments: T
Slide 21: Appendix: Restatement of Q1 2023 Earnings
APPENDIX: RESTATEMENT OF Q1 2023 EARNINGS GAAP Adjusted Q1 2023 Q1 2023 Q1 2023 Q1 2023 ▪ On May 10, 2023, Crane Company reported Q1 As-Reported As-Restated As-Reported As-Restated Segment Operating Profit 112.4 112.4 112.6 112.6 2023 results on a “carve-out” basis Corporate (26.1) (34.9) (17.5) (21
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