Enovis Corporation · NYSE:ENOV
Enovis — Colfax — Investor Presentation (February 2010)
34 slides from Enovis's investor presentation, Feb 23, 2010
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation February 23, 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: Company Overview
Company Overview 2009 revenue of Products $525 million 2 & 3 Screw Centrifugal Progressive Fluid Handling Precision Gear Specialty ~2,000 associates Pumps Pumps Cavity Pumps Systems Pumps Valves worldwide 14 principal production facilities in 7 countries Over 300 direct sales and marketing associate
Slide 4: Background
Background Founded in 1995 Equity capital provided by Mitch and Steve Rales, founders of Danaher (NYSE: DHR) Targeted global industrial companies with strong brands 13 acquisitions, 5 divestitures Exclusively focused on fluid handling industry Proven, experienced management team Began trading on the
Slide 5: Colfax Business System Drives Business Improvement
Colfax Business System Drives Business Improvement Derived from the proven Danaher Business System Utilize Voice of the Customer (“VOC”) to target breakthrough growth initiatives, new products and applications Conduct root-cause analysis, develop process improvements and implement sustainable system
Slide 6: Investment Highlights
Investment Highlights Global leader in specialty fluid handling products Proven application expertise in solving critical customer needs Serving growing global infrastructure driven end markets Leading brand names generating aftermarket sales and services Experienced management team in place to grow
Slide 7: Broad Product Portfolio Focused on Customer Applications
Broad Product Portfolio Focused on Customer Applications 2 and 3 Screw Pumps Centrifugal Pumps Progressive Cavity Pumps Fluid Handling Systems Precision Gear Pumps Specialty Valves Well recognized brands across served markets 6
Slide 8: Serving Critical Applications in Our Key End Markets
Serving Critical Applications in Our Key End Markets Commercial Power General Oil & Gas Global Navy Marine Generation Industrial Key Key Markets Markets Applications Applications Brands Brands Commercial CommercialMarine Marine Fuel Fuel oil oil transfer; transfer; oil oil transport; transport; wate
Slide 9: Large and Diverse Customer Base and End Markets
Large and Diverse Customer Base and End Markets 2009 Revenues By End Markets 2009 Revenues By Geography (2) 9% (1) 18% 24% 14% 34% 7% 5% 17% 2% 44% 26% Blue Chip Customers Blue chip customer base with no single customer representing more than 4% of sales in 2009 (1) ____________________ (2) Includes
Slide 10: Extensive Global Sales, Distribution and Manufacturing Footprint
Extensive Global Sales, Distribution and Manufacturing Footprint Imo AB Stockholm Houttuin Portland Valve Allweiler Bottrop Warren Allweiler Allweiler Radolfzell Fairmount Automation Tours Allweiler Imo Kentucky Corporate HQ Richmond Gottmandingen Imo Monroe LSC Colfax Wuxi Houston Tushaco Daman Tus
Slide 11: Oil & Gas Markets – Strong Application Expertise
Oil & Gas Markets – Strong Application Expertise Situation Analysis Situation Analysis A Canadian energy company moves heavy crude oil along Major Venezuelan oil company moves 180,000 BPD of sand pipelines from the oil fields in Northern Canada through laden crude oil through pipelines using a compe
Slide 12: Expansion of Systems Business
Expansion of Systems Business Situation Analysis Situation Analysis Americas region OEM and end-user customers need A major Japanese OEM turbine manufacturer wanted turn-key solutions – not just pumps. to reduce installation time required at power plant construction sites. Initial focus - integrate
Slide 13: Develop New Products, Applications and Technologies Driven by Voice of the Customer
Develop New Products, Applications and Technologies Driven by Voice of the Customer Step 1 - VOC Step 1a – VOC Summary All-Heat SMART Benefits 1. Senses wear & alerts 2. end-user Easy to upgrade EMTEC SMART All-Fuel SMART Step 2 – Prioritization Step 3 – Specification Benefits Benefits 1. 1. 50% ene
Slide 14: Serving Infrastructure Driven End Markets
Serving Infrastructure Driven End Markets Estimated Market Expectations Market Size In the commercial marine industry, we expect international trade and demand for crude oil and other commodities as well as the age of the global merchant fleet to continue to create demand for new ship construction o
Slide 15: Target Fast Growing Regions
Target Fast Growing Regions Capitalize on growth opportunities by offering regionally developed products and solutions Continue to invest in sales and marketing capabilities to more effectively serve local Asia Pacific markets Leverage application expertise to design fluid handling solutions that ca
Slide 16: Leading Brands Generating Aftermarket Sales and Services
Leading Brands Generating Aftermarket Sales and Services Product history dating back to 1860 provides large installed base Est. 1931 Est. 1897 Est. 1860 Acq. 1997 Acq. 1997 Acq. 1998 High quality, reliable products used in critical applications Tendency for customers to replace “like for like” produ
Slide 17: Continue to Pursue Strategic Acquisitions that Complement Our Platform
Continue to Pursue Strategic Acquisitions that Complement Our Platform Acquisition Initiatives Acquisition Criteria Continue to proactively engage with Acquire companies in the fluid handling highly strategic targets industry Product, market and geographically Strong brand name recognition focused s
Slide 18: Asbestos Update
Asbestos Update Claims arise from purchased components previously included in our products Significant solvent insurance coverage Bad faith lawsuit against insurance carriers increases costs in process Estimated annual liability and related defense costs of $4 million before potential insurance asse
Slide 19: Financial Overview
Colfax Financial Overview Colfax Comoration 18
Slide 20: Financial Performance Overview – 2006-2009
Financial Performance Overview – 2006-2009 Revenue Adjusted EBITDA (1) Existing Businesses -- 13.5% 13.9% (8.1)% % Margin 16.3% 17.4% 17.5% 15.4% Acquisitions -- 8.0% 1.1% 0.2% FX Translation -- 7.1% 4.5% (5.3)% Total Growth (Decline) 28.6% 19.5% (13.2)% Orders Backlog (1) Refer to Appendix for Non-
Slide 21: Financial Performance Overview – Current Quarter
Financial Performance Overview – Current Quarter 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)% Orders Backlog Existing Businesses -- (28.
Slide 22: 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 23: Statement of Cash Flows Summary (preliminary)
Statement of Cash Flows Summary (preliminary) Year ended December 31, 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) Acqu
Slide 24: 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 25: 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 24
Slide 26: Well Positioned for the Future
Well Positioned for the Future Proven Application Serving 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 Generating A
Slide 27: Appendix
Colfax Appendix Colfax Comoration 26
Slide 28: 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 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2009 2008 2007 2006 EBITDA Net income (loss) $ 21,722 $ (571) $ 64,882 $ 94 Interest expense 7,212 11,822 19,246 14,186 Provision for income taxes 9,525 5,438 39,147 3,866 Depreciation and amortization 14,426 14,788 15,239 11,481 EBITDA $ 52,885 $ 31,477 $ 138,514 $ 29,627 EB
Slide 30: 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 31: 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 32: 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 33: 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 34: 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