Slide 1: 4Q 2009 Earnings Call
Exhibit 99.2 4Q 2009 Earnings Call February 18, 2010
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 2009 Highlights
Q4 2009 Highlights Adjusted net income of $11.2 million (26 cents per share) compared to $17.5 million (40 cents per share) in Q4 2008, including positive currency effects of 2 cents per share Net sales of $131.0 million compared to $159.3 million in Q4 2008, a decrease of 17.8% (organic decline of
Slide 4: Full Year 2009 Highlights
Full Year 2009 Highlights Adjusted net income of $40.1 million (93 cents per share) compared to $53.7 million ($1.22 per share) in 2008, including negative currency effects of 9 cents per share Net sales of $525.0 million compared to $604.9 million in 2008, a decrease of 13.2% (organic decline of 8.
Slide 5: Profit Protection Plan Update
Profit Protection Plan Update Continuing to rightsize to align capacity with demand Major actions in 2009: Reduced temporary, contract and full-time employees (approximately 330 associates) Implemented furlough programs in Germany (approximately 630 associates, 99 full-time equivalents) Closed two f
Slide 6: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Revenue Adjusted EBITDA (1) Existing Businesses -- (23.5)% -- (8.1)% % Margin 20.1% 16.9% 17.5% 15.4% Acquisitions -- 0.3% -- 0.2% FX Translation -- 5.4% -- (5.3)% Total Growth (Decline) -- (17.8)% -- (13.2)% (1) Refer to Appendix for Non-GAAP reconciliation. ____________
Slide 7: Orders and Backlog
Orders and Backlog Orders Backlog Existing -- (28.3)% -- (29.0)% Businesses Acquisitions -- 0.8% -- 0.2% FX Translation -- 5.1% -- (3.4)% Total Growth (22.4)% -- (32.2)% ____________________ Note: Dollars in millions. 6
Slide 8: Q4 2009 Sales and Orders by End Market
Q4 2009 Sales and Orders by End Market Sales: $131.0 million Orders: $101.6 million Total Growth Organic Growth Total Growth Organic Growth Commercial Marine (20)% (30)% Commercial Marine (27)% (38)% Oil & Gas - (4)% Oil & Gas (62)% (63)% Power Generation (20)% (25)% Power Generation (23)% (28)% Glo
Slide 9: 2009 Sales and Orders by End Market
2009 Sales and Orders by End Market Sales: $525.0 million Orders: $462.4 million Total Growth Organic Growth Total Growth Organic Growth Commercial Marine (8)% 2% Commercial Marine (59)% (55)% Oil & Gas - 2% Oil & Gas (34)% (32)% Power Generation (11)% (7)% Power Generation (21)% (18)% Global Navy 3
Slide 10: 2009 Q4 vs. Q3 Sales and Orders by End Market
2009 Q4 vs. Q3 Sales and Orders by End Market Sales Orders Total Growth Organic Growth Total Growth Organic Growth Commercial Marine (4)% (9)% Commercial Marine (9)% (16)% Oil & Gas 16% 15% Oil & Gas (50)% (50)% Power Generation (8)% (10)% Power Generation (30)% (31)% Global Navy 15% 15% Global Navy
Slide 11: Commercial Marine
Commercial Marine Market Trends International trade and demand for bulk commodities and oil should drive new ship construction long-term Aging fleet and environmental regulations requiring ship owners to upgrade or replace ships 10,000 ships on order, approximately 3,000 deliveries in 2009 Cancellat
Slide 12: Oil & Gas
Oil & Gas Market Trends Long-term demand for oil projected to increase Growth driven by developing countries Heavy and highly viscous oil will account for an increasing share of production Stable oil prices supporting activity Our Plan Capitalize on growth in heavy oil exploration, transport and pro
Slide 13: Power Generation
Power Generation Market Trends Worldwide demand for electricity is expected to double by 2030 Majority of growth expected to be in developing countries Expect growth in nearly all fuel types long-term Our Plan Continue to participate in expansion of energy infrastructure growth in Asia and the Middl
Slide 14: Global Navy
Global Navy Market Trends Defense spending in U.S. has increased; recent growth in Navy funding Focus is on automation – less manpower, cost reductions, increased efficiency Global navies moving forward to modernize and expand fleets Our Plan U.S. Continue to be key Navy supplier (have been on all N
Slide 15: General Industrial
General Industrial Market Trends Demand driven by capital investment long-term Submarkets remain weak, but general industrial indicators showing signs of improvement Developing regions embracing engineered products and solutions that reduce costs and increase efficiency Global footprint and channel
Slide 16: Strong Financial Condition
Strong Financial Condition Strong balance sheet Debt to adjusted EBITDA - approximately 1X Debt of $91 million, principal payments of $9 million in 2010, matures in 2013 Cash = $50 million $136 million available on revolver Strong cash flow 2009 Adjusted EBITDA of $81 million Note: As of 12/31/09 15
Slide 17: Income Statement Summary
Income Statement Summary Three Months Ended Delta December 31, 2009 December 31, 2008 $ % Orders $ 101.6 $ 131.0 $ (29.4) (22.4)% Sales $ 131.0 $ 159.3 $ (28.3) (17.8)% Gross Profit $ 47.0 $ 57.8 $ (10.7) (18.6)% % of Sales 35.9% 36.3% Adjusted SG&A Expenses $ 27.4 $ 27.7 $ (0.3) (1.1)% R&D Expense
Slide 18: Income Statement Summary
Income Statement Summary Year Ended Delta December 31, 2009 December 31, 2008 $ % Orders $ 462.4 $ 682.1 $ (219.7) (32.2)% Sales $ 525.0 $ 604.9 $ (79.8) (13.2)% Gross Profit $ 185.8 $ 217.2 $ (31.4) (14.5)% % of Sales 35.4% 35.9% Adjusted SG&A Expense $ 113.7 $ 120.5 $ (6.8) (5.7)% R&D Expense 5.9
Slide 19: Statement of Cash Flows Summary (preliminary)
Statement of Cash Flows Summary (preliminary) Year ended December31, 2009 2008 Net income (loss) $ 21.7 $ (0.6) Non-cash expenses 21.9 18.4 Change in working capital and accrued liabilities 6.1 (29.1) Other (11.4) (21.7) Total Operating Activities 38.3 (33.0) Capital expenditures (11.0) (18.6) Acqui
Slide 20: 2010 Outlook Summary
2010 Outlook Summary Revenue Range 2010 Organic growth (1) (5)% To (9)% 2010 Total $480 million To $500 million EPS Range 2010 Net income per share $0.41 To $0.51 (2) $0.67 To $0.77 2010 Adjusted net income per share Assumptions Asbestos coverage litigation $9 million Asbestos liability and defense
Slide 21: 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 22: Appendix
Colfax Appendix Q4 2009 Earnings Call 21
Slide 23: 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 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Year Ended December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008 EBITDA Net income (loss) $ 5,120 $ 10,379 $ 21,722 $ (571) Interest expense 1,746 2,138 7,212 11,822 Provision for income taxes 2,092 9,210 9,525 5,438 Depreciation and amort
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Year Ended December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008 Adjusted Net Income and Adjusted Earnings per Share Net income (loss) $ 5,120 $ 10,379 $ 21,722 $ (571) Restructuring and other related charges 7,420 - 18,175 - IPO-related c
Slide 26: Sales & Order Growth
Sales & Order Growth Sales Orders $ % $ % Three Months Ended December 31, 2008 $ 159.3 $ 131.0 Components of Change: Existing Businesses (37.5) (23.5)% (37.1) (28.3)% Acquisitions 0.5 0.3 % 1.0 0.8 % Foreign Currency Translation 8.7 5.4 % 6.7 5.1 % Total (28.3) (17.8)% (29.4) (22.4)% Three Months En
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Year Ended December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008 Adjusted SG&A Expense Selling, general and administrative expenses $ 27,426 $ 27,718 $ 113,674 $ 125,234 Legacy legal adjustment - - - 4,131 Due diligence costs - - - 582 Adj
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Colfax Corporation Reconciliation of Projected 2010 Net Income Per Shareto Adjusted Net Income Per Share Amounts in Dollars (Unaudited) EPS Range Projected net income per share - fully diluted $ 0.41 $ 0.51 1 Estimated restructuring and other related charges 0.06 0.06 Asbesto
Slide 29: Restated Orders and Backlog Growth
Restated Orders and Backlog Growth Restated Orders and Backlog Growth, 2009 vs. 2008 Restated Orders and Backlog Growth, 2009 Sequential Orders Backlog at Period End Orders Backlog at Period End $ % $ % $ % $ % Three Months Ended March 28, 2008 183.5 366.8 Three Months Ended December 31, 2008 131.0