Slide 1: Q4 2008 Earnings Call
Exhibit 99.2 Q4 2008 Earnings Call February 20, 2009
Slide 2: 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 3: Q4 2008 Highlights
Q4 2008 Highlights Adjusted net income of $17.5 million (40 cents per share), an increase of 19.1% Net sales of $159.3 million, an increase of 10.9% (organic growth of 19.1%) Adjusted operating income of $28.6 million, an increase of 14.9% Adjusted EBITDA of $32.1 million, an increase of 10.8% Fourt
Slide 4: 2008 Highlights
2008 Highlights Adjusted net income of $53.7 million ($1.22 per share), an increase of 32.8% Net sales of $604.9 million, an increase of 19.5% (organic growth of 13.9%) Adjusted operating income of $90.8 million, an increase of 24.5% Adjusted EBITDA of $105.6 million, an increase of 19.8% Orders of
Slide 5: Orders and Backlog
Orders and Backlog Orders Backlog $700.0 $400.0 $600.0 $320.0 $500.0 $400.0 $240.0 $669.2 $300.0 $581.5 $337.3 $160.0 $292.8 $200.0 $179.3 $80.0 $100.0 $118.3 $156.5 $126.3 $0.0 $0.0 Q4 2007 Q4 2008 2007 2008 2005 2006 2007 2008 Existing -- (15.8)% -- 7.0% -- 15.0% Businesses -- 5.2% Acquisitions --
Slide 6: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Revenue Adjusted EBITDA (1) $700.0 $120.0 $600.0 $100.0 $500.0 $80.0 $400.0 $604.9 $60.0 $300.0 $105.6 $506.3 $88.2 $200.0 $40.0 $100.0 $20.0 $143.7 $159.3 $28.9 $32.1 $0.0 $0.0 Q4 2007 Q4 2008 - 2007 2008 Q4 2007 Q4 2008 - 2007 2008 Existing -- 19.1% -- 13.9% % Margin 20
Slide 7: Q4 2008 Sales and Orders by End Market
Q4 2008 Sales and Orders by End Market Q4 2008 Sales: $159.3 million Q4 2008 Orders: $126.3 million Global Navy Global Navy 8% 10% Power Generation Power General General 14% Generation Industrial Industrial 17% 38% 39% Oil & Gas 15% Oil & Gas 18% Commercial Commercial Marine Marine 24% 17% Well posi
Slide 8: 2008 Sales and Orders by End Market
2008 Sales and Orders by End Market 2008 Sales: $604.9 million 2008 Orders: $669.2 million Global Navy Global Navy Power 6% 7% Power Generation Generation 14% 14% General General Industrial Industrial 37% 41% Oil & Gas 14% Oil & Gas 16% Commercial Commercial Marine Marine 25% 26% Well positioned in
Slide 9: Commercial Marine Market Perspective
Commercial Marine Market Perspective Colfax Q4 08 Q4 2008 Year-Over-Year Results Orders Split Orders down 62.5% year-over-year (-58.2% organic growth) Sales up 21.4% year-over-year (34.4% organic growth) 2008 Year-Over-Year Results Orders up 4.9% year-over-year (-2.4% organic growth) 17% Comm. Sales
Slide 10: Oil & Gas Market Perspective
Oil & Gas Market Perspective Q4 2008 Year-Over-Year Results Colfax Q4 08 Orders Split Orders up 35.8% year-over-year (37.2% organic growth) Sales up 8.9% year-over-year (10.7% organic growth) 2008 Year-Over-Year Results 18% O&G Orders up 38.2% year-over-year (33.6% organic growth) Sales up 4.9% year
Slide 11: Power Generation Market Perspective
Power Generation Market Perspective Q4 2008 Year-Over-Year Results Colfax Q4 08 Orders Split Orders up 50.0% year-over-year (59.2% organic growth) 17% Sales down 8.4% year-over-year (-2.8% organic growth) Power Gen. 2008 Year-Over-Year Results Orders up 17.6% year-over-year (12.9% organic growth) Sa
Slide 12: Global Navy Market Perspective
Global Navy Market Perspective Q4 2008 Year-Over-Year Results Colfax Q4 08 Orders Split Orders up 84.7% year-over-year (38.3% organic growth) 10% Sales up 26.9% year-over-year (20.1% organic growth) Navy YTD 2008 Year-Over-Year Results Orders up 58.0% year-over-year (22.1% organic growth) Sales up 1
Slide 13: General Industrial Perspective
General Industrial Perspective Colfax Q4 08 Q4 2008 Year-Over-Year Results Orders Split Orders down 22.2% year-over-year (-14.7% organic growth) Sales up 11.0% year-over-year (22.8% organic growth) 2008 Year-Over-Year Results 38% General Orders up 8.4% year-over-year (1.0% organic growth) Industrial
Slide 14: Income Statement Summary (Quarter)
Income Statement Summary Three Months Ended Delta 12/31/2008 12/31/2007 $ % Orders $ 126.3 $ 156.5 $ (30.2) -19.3% Sales $ 159.3 $ 143.7 $ 15.6 10.9% Gross Profit $ 57.8 $ 49.2 $ 8.5 17.4% % of Sales 36.3% 34.2% SG&A Expense $ 27.7 $ 23.2 $ 4.5 19.4% R&D Expense 1.4 1.1 0.3 31.2% Operating Expenses
Slide 15: Income Statement Summary (Year)
Income Statement Summary Year Ended Delta 12/31/2008 12/31/2007 $ % Orders $ 669.2 $ 581.5 $ 87.7 15.1% Sales $ 604.9 $ 506.3 $ 98.6 19.5% Gross Profit $ 217.2 $ 175.6 $ 41.6 23.7% % of Sales 35.9% 34.7% Adjusted SG&A Expense $ 120.5 $ 98.5 $ 22.0 22.4% R&D Expense 5.9 4.2 1.7 40.7% Operating Expens
Slide 16: Statement of Cash Flows Summary
Statement of Cash Flows Summary (Preliminary & Unaudited) Year Ended December 31, 2008 2007 Net (Loss) Income $ (0.6) $ 64.9 Non-Cash Expenses 18.4 39.0 Change in Working Capital and Accrued Liabilities (27.7) 3.3 Other (21.6) (32.7) Total Operating Activities $ (31.5) $ 74.5 Capital Expenditures $
Slide 17: Strong Financial Condition
Strong Financial Condition(1) Debt to adjusted EBITDA < 1 times Approximately $130 million available on revolver (expires in 2013) Approximately $29 million in cash Strong balance sheet and credit availability provide flexibility (1) As of FYE 2008 16
Slide 18: 2009 Outlook Summary
2009 Outlook Summary Revenue Range (1) 1% to 3% 2009 Organic growth 2009 Total $570 million to $585 million EPS Range 2009 Net income per share $0.80 to $0.87 2009 Adjusted net income per share (2) $1.10 to $1.17 Assumptions Asbestos coverage litigation $12 million Asbestos liability and defense cos
Slide 19: 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 20: Appendix
Colfax Appendix Q4 2008 Earnings Call 19
Slide 21: Disclaimer
Disclaimer Adjusted net income, adjusted net income per share, adjusted operating income, EBITDA, adjusted EBITDA, adjusted selling, general and administrative expenses, organic sales growth and organic order growth are non-GAAP financial measures. Adjusted net income, adjusted net income per share,
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2008 2007 2008 2007 EBITDA Net income (loss) $ 10,379 $ 28,992 $ (571) $ 64,882 Interest expense 2,138 4,830 11,822 19,246 Provision for income taxes 9,210 17,715 5,438 39,147 Depreciation and a
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2008 2007 2008 2007 Adjusted Net Income and Adjusted Earnings per Share Net income (loss) $ 10,379 $ 28,992 $ (571) $ 64,882 IPO-related costs - - 57,017 - Legacy legal adjustment - - 4,131 - Du
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2008 2007 2008 2007 Adjusted SG&A Expense Selling, general and administrative expenses $ 27,718 $ 23,223 $ 125,234 $ 98,500 Legacy legal adjustment - - 4,131 - Due diligence costs - - 582 - Adju
Slide 25: Sales & Order Growth
Sales & Order Growth Sales Orders $ % $ % Three Months Ended December 31, 2007 $ 143.7 $ 156.5 Components of Growth: Organic growth from existing businesses 27.4 19.1% (24.7) (15.8%) Acquisitions 0.8 0.6% 3.1 2.0% Foreign currency translation (12.6) (8.8%) (8.6) (5.5%) Total Growth 15.6 10.9% (30.2)
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation EPS Range Projected 2009 net income per share - fully diluted $ 0.80 $ 0.87 Asbestos coverage litigation 0.28 0.28 Asbestos liability and defense costs 0.16 0.16 Income tax benefit at 32% (0.14) (0.14) Projected 2009 adjusted net income per share - fully diluted $ 1.10 $ 1.17