Crane Company · NYSE:CR
Crane — Q3 2022 Earnings Presentation
23 slides from Crane's earnings presentation, Oct 25, 2022
Slide 1: Crane Q3 2022 Earnings Release Call
CRANE Q3 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: Q3 2022 Earnings Summary and Highlights
Q3 2022 EARNINGS SUMMARY AND HIGHLIGHTS $ Millions except per-share amounts Q3 2022 Q3 2021 Change Sales $815 $894 (9%) Operating Profit* $144 $146 (2%) Operating Margin* 17.6% 16.4% +120 bps Earnings per Share* $1.86 $1.98 (6%) Adjusted Free Cash Flow** $137 $108 +27% Additional Details Q3 2022 Q3
Slide 5: Q3 YTD 2022 Earnings Summary and Highlights
Q3 YTD 2022 EARNINGS SUMMARY AND HIGHLIGHTS $ Millions except per-share amounts Q3 YTD 2022 Q3 YTD 2021 Change Sales $2,551 $2,583 (1%) Operating Profit* $444 $429 +4% Operating Margin* 17.4% 16.6% +80 bps Earnings per Share* $5.75 $5.58 +3% Adjusted Free Cash Flow** $176 $300 (41%) Additional Detai
Slide 6: Aerospace & Electronics
AEROSPACE & ELECTRONICS $ Millions except per-share amounts Q3 2022 Q3 2021 Change Sales $167 $169 (1%) Operating Profit $28 $33 (13%) Operating Margin 16.9% 19.3% (240 bps) Backlog $592 $479 +24% Additional Details Q3 2022 Q3 2022 OE Sales Flat Core Growth (0.5%) Aftermarket Sales (3%) FX Translati
Slide 7: Aerospace & Electronics
AEROSPACE & ELECTRONICS $ Millions except per-share amounts Q3 YTD 2022 Q3 YTD 2021 Change Sales $486 $480 +1% Operating Profit $84 $89 (5%) Operating Margin 17.4% 18.6% (120 bps) Additional Details Q3 YTD 2022 Q3 YTD 2022 OE Sales Flat Core Growth +1.4% Aftermarket Sales +5% FX Translation (0.2%) O
Slide 8: Process Flow Technologies
PROCESS FLOW TECHNOLOGIES $ Millions except per-share amounts Q3 2022 Q3 2021 Change Sales $250 $299 (16%) Operating Profit* $42 $46 (9%) Operating Margin* 16.8% 15.5% +130 bps Backlog $354 $351 +1% Additional Details Q3 2022 ▪ Compared to Q2 2022, sequential core FX neutral backlog up +5% and core
Slide 9: Process Flow Technologies
PROCESS FLOW TECHNOLOGIES $ Millions except per-share amounts Q3 YTD 2022 Q3 YTD 2021 Change Sales $857 $898 (5%) Operating Profit* $139 $134 +4% Operating Margin* 16.2% 14.9% +130 bps Additional Details Q3 YTD 2022 ▪ Compared to Q3 YTD 2021, year-over-year core FX neutral backlog up +16% and core F
Slide 10: Payment & Merchandising Technologies
PAYMENT & MERCHANDISING TECHNOLOGIES $ Millions except per-share amounts Q3 2022 Q3 2021 Change Sales $335 $366 (8.4%) Operating Profit* $87 $83 +5% Operating Margin* 25.9% 22.6% +330 bps Backlog $500 $388 +29% Additional Details Q3 2022 • Compared to Q3 2021, year-over-year core FX neutral Core Gro
Slide 11: Payment & Merchandising Technologies
PAYMENT & MERCHANDISING TECHNOLOGIES $ Millions except per-share amounts Q3 YTD 2022 Q3 YTD 2021 Change Sales $1,002 $1,031 +3% Operating Profit* $252 $246 +2% Operating Margin* 25.1% 23.8% +130 bps Additional Details Q3 YTD 2022 • Compared to Q3 YTD 2021, year-over-year core FX Core Growth +1.6% ne
Slide 12: Engineered Materials
ENGINEERED MATERIALS $ Millions except per-share amounts Q3 2022 Q3 2021 Change Sales $63 $60 +4% Operating Profit* $7 $7 +3% Operating Margin* 10.8% 10.9% (10 bps) Additional Details Q3 2022 Q3 2022 Recreational Vehicle Sales (14%) Core Growth +4.1% Building Products Sales +22% FX Translation - Tra
Slide 13: Engineered Materials
ENGINEERED MATERIALS $ Millions except per-share amounts Q3 YTD 2022 Q3 YTD 2021 Change Sales $206 $173 +19% Operating Profit* $31 $21 +48% Operating Margin* 14.9% 11.9% +300 bps Additional Details Q3 YTD 2022 Q3 YTD 2022 Recreational Vehicle Sales +19% Core Growth +18.8% Building Products Sales +23
Slide 14: Cash Flow, Balance Sheet and Tax
CASH FLOW, BALANCE SHEET AND TAX $ Millions except per-share amounts Q3 2022 Q3 2021 Better / (Worse) Cash (Used) Provided from Operating Activities ($427) $120 ($547) Capital Expenditures ($12) ($12) $0 Free Cash Flow* ($439) $108 ($547) Adjusted Free Cash Flow** $137 $108 $29 Effective (GAAP) Tax
Slide 15: Non-GAAP Information
NON-GAAP INFORMATION OCTOBER 25, 2022
Slide 16: 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, Free
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 (Income Items 1/2)
NON-GAAP FINANCIAL MEASURES (INCOME ITEMS 1/2) Three Months Ended September 30, (in millions, except per share data) 2022 2021 % Change $ Per Share $ Per Share (on $) Net sales $ 815.1 $ 893.8 (8.8)% Operating (loss) profit (GAAP) $ (31.2) $ 144.8 (121.5)% Operating profit margin (GAAP) (3.8)% 16.2
Slide 19: Non-GAAP Financial Measures (Income Items 2/2)
NON-GAAP FINANCIAL MEASURES (INCOME ITEMS 2/2) Nine Months Ended September 30, (in millions, except per share data) 2022 2021 % Change $ Per Share $ Per Share (on $) Net sales $ 2,550.8 $ 2,582.8 (1.2)% Operating profit (GAAP) $ 240.2 $ 435.8 (44.9)% Operating profit margin (GAAP) 9.4 % 16.9 % Speci
Slide 20: 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 September 30, 2022 Electronics Technologies Technologies Materials Corporate Company Net sales $ 167.2 $ 250.0 $ 335.1 $ 62.8 $ — $ 815.1 Operating profit
Slide 21: Non-GAAP Financial Measures (Segment Data 2/2)
NON-GAAP FINANCIAL MEASURES (SEGMENT DATA 2/2) (in millions) Payment & Aerospace & Process Flow Merchandising Engineered Total Nine Months Ended September 30, 2022 Electronics Technologies Technologies Materials Corporate Company Net sales $ 485.8 $ 857.4 $ 1,001.7 $ 205.9 $ — $ 2,550.8 Operating pr
Slide 22: 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) $ 6.58 $ 6.72 Special items impacting earnings per share 1.00 1.00 Adjusted earnings per diluted share $ 7.58 $ 7.72 Th
Slide 23: Jason D. Feldman
Jason D. Feldman Vice President, Investor Relations 203-363-7329