Slide 1: Fourth Quarter 2010 Earnings Call
Fourth Quarter 2010 Earnings Call February 15, 2011
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
Slide 3: Q4 2010 Highlights
Q4 2010 Highlights Q4 2010 Earnings Call Adjusted net income of $16.9 million (39 cents per share) compared to $11.5 million (26 cents per share) in Q4 2009, an increase of 47.1%; Q4 2010 results include negative 1 cent per share related to currency effects Net sales of $166.7 million compared to $1
Slide 4: Full Year 2010 Highlights
Full Year 2010 Highlights Q4 2010 Earnings Call Adjusted net income of $40.2 million (92 cents per share) compared to $40.9 million (94 cents per share) in 2009 (currency effect between years not material) Net sales of $542.0 million compared to $525.0 million in 2009, an increase of 3.2% (organic i
Slide 5: Orders and Backlog
Orders and Backlog Q4 2010 Earnings Call Orders Backlog $450.0 $600.0 $400.0 $500.0 $350.0 $300.0 $400.0 $250.0 $300.0 $200.0 $3 9 9 $4 0 0 $532.8 $3 6 7 $3 4 9 $3 51 $3 2 2 $3 2 7 $3 2 5 $462.4 $150.0 $3 0 3 $3 14 $2 9 1 $2 8 1 $2 9 7 $200.0 $100.0 $100.0 $50.0 $133.6 $101.6 $0.0 $0.0 Q4 2009 Q4 20
Slide 6: Revenue and Adjusted Operating Income
Revenue and Adjusted Operating Income Q4 2010 Earnings Call Revenue Adjusted Operating Income (1) $600.0 $80.0 $500.0 $60.0 $400.0 $300.0 $40.0 $525.0 $542.0 $67.4 $65.8 $200.0 $20.0 $100.0 $166.7 $26.5 $131.0 $18.7 $0.0 $0.0 Q4 2009 Q4 2010 2009 2010 Q4 2009 Q4 2010 2009 2010 Existing Businesses --
Slide 7: Q4 2010 Sales and Orders by End Market
Q4 2010 Sales and Orders by End Market Q4 2010 Earnings Call Sales: $166.7 . million Orders: $133.6 . million Power Defense Defense 5% Generation 12% General 10% Power Industrial Generation 31% General 12% Industrial Oil & Gas 42% 18% Oil & Gas 21% Commercial Commercial Marine Marine 24% 25% Total G
Slide 8: 2010 Sales and Orders by End Market
2010 Sales and Orders by End Market Q4 2010 Earnings Call Sales: $542.0 . million Orders: $532.8 . million Defense Defense 10% 11% Power General Power General Generation Industrial Generation Industrial 14% 35% 13% 37% Oil & Gas Oil & Gas 15% 16% Commercial Commercial Marine Marine 26% 23% Total Gro
Slide 9: 2010 Q4 vs. 2010 Q3 Sales and Orders by End Market
2010 Q4 vs. 2010 Q3 Sales and Orders by End Market Q4 2010 Earnings Call Sales Orders Total Growth (Decline) Organic Growth (Decline) Total Growth (Decline) Organic Growth (Decline) Commercial Marine 20 % 14 % Commercial Marine 57 % 49 % Oil & Gas 93 % 71 % Oil & Gas (1)% (5)% Power Generation (3)%
Slide 10: Commercial Marine Market Perspective
Commercial Marine Market Perspective Sales & Orders Growth Q410 YoY Q410 YTD YoY Q410 Sequential Total Organic Total Organic Total Organic Sales 31% 36% 3% 2% 20% 14% Orders 71% 75% 55% 50% 57% 49% Highlights and Outlook Sales increase primarily driven by reduction in backlog Orders increased signif
Slide 11: Oil & Gas Market Perspective
Oil & Gas Market Perspective Q4 2010 Earnings Call Sales & Orders Growth (Decline) Colfax 2010 Sales Split Q410 YoY Q410 YTD YoY Q410 Sequential Total Organic Total Organic Total Organic 15% O&G Sales 43% 24% (7)% (14)% 93% 71% Orders 172% 162% 27% 24% (1)% (5)% Highlights and Outlook Colfax 2010 Ne
Slide 12: Power Generation Market Perspective
Power Generation Market Perspective Sales & Orders Growth (Decline) Q410 YoY Q410 YTD YoY Q410 Sequential Total Organic Total Organic Total Organic Sales 20% 23% 4% 6% (3)% (6)% Orders (18)% (16)% (7)% (5)% (29)% (30)% Highlights and Outlook Solid growth in sales while orders down primarily due to d
Slide 13: Defense Market Perspective
Defense Market Perspective Q4 2010 Earnings Call Colfax 2010 Sales & Orders Growth (Decline) Sales Split Q410 YoY Q410 YTD YoY Q410 Sequential 10% Total Organic Total Organic Total Organic Defense Sales 18% 18% 13% 13% 47% 46% Orders (43)% (42)% (27)% (27)% (45)% (46)% Highlights and Outlook Colfax
Slide 14: General Industrial Market Perspective
General Industrial Market Perspective Sales & Orders Growth Q410 YoY Q410 YTD YoY Q410 Sequential Total Organic Total Organic Total Organic Sales 22% 28% 5% 8% 12% 7% Orders 26% 32% 22% 25% 20% 15% Highlights and Outlook Sales and orders up for the quarter Growth in 2010 led by increases in orders i
Slide 15: Rosscor Overview
Rosscor Overview Headquarters Hengelo, The Netherlands Products Multiphase pump (MPP) systems for upstream oil & gas applications Other engineered pump and compression systems Key Served Regions Russia, Kazakhstan, Southeast Asia Q4 2010 Earnings Call Acquisition Rationale Logical extension to oil &
Slide 16: Strong Financial Condition
Strong Financial Condition Q4 2010 Earnings Call Strong balance sheet Debt of $83 million, principal payments of $10 million in 2011, matures in 2013 Cash of $61 million $130 million available on revolver Strong cash flow Working capital to annual net sales of 19% for 2010 from 23% in 2009 Inventory
Slide 17: Income Statement Summary (Unaudited) - Q4
Three Months Ended December 31, Change 2010 2009 $ % Orders $ 133.6 $ 101.6 $ 32.0 31.5 % Sales $ 166.7 $ 131.0 $ 35.7 27.2 % Gross Profit $ 59.6 $ 47.0 $ 12.6 26.8 % % of Sales 35.7% 35.9% SG&A Expenses $ 31.6 $ 27.0 $ 4.6 17.0 % R&D Expense 1.5 1.3 0.2 15.4 % Operating Expenses $ 33.1 $ 28.3 $ 4.8
Slide 18: Income Statement Summary (Unaudited) - Full Year
Income Statement Summary (Unaudited) Q4 2010 Earnings Call Year Ended December 31, Change 2010 2009 $ % Orders $ 532.8 $ 462.4 $ 70.4 15.2 % Sales $ 542.0 $ 525.0 $ 17.0 3.2 % Gross Profit $ 191.4 $ 185.8 $ 5.6 3.0 % % of Sales 35.3% 35.4% SG&A Expense $ 119.4 $ 112.5 $ 6.9 6.1 % R&D Expense 6.2 5.9
Slide 19: Statement of Cash Flows Summary (unaudited)
Statement of Cash Flows Summary (unaudited) Q4 2010 Earnings Call Year ended December 31, 2010 2009 Net income $ 16.2 $ 23.8 Non-cash expenses 19.7 21.0 Changes in working capital 27.3 6.1 Other (1.3) (12.2) Total Operating Activities 61.9 38.7 Purchases of fixed assets (12.5) (11.0) Acquisitions, n
Slide 20: 2011 Outlook Summary
2011 Outlook Summary Q4 2010 Earnings Call Revenue Range 2011 Organic growth (1) 2% To 4% 2011 Total (2) $570 million To $580 million EPS Range 2011 Net income per share (2) $0.80 To $0.90 2011 Adjusted net income per share (3) $1.00 To $1.10 Assumptions Asbestos coverage litigation $6 million Asbes
Slide 21: Appendix
Q4 2010 Earnings Call Appendix
Slide 22: Disclaimer
Disclaimer Q4 2010 Earnings Call Colfax has provided financial information that has not been prepared in accordance with GAAP. These non-GAAP financial measures are adjusted net income, adjusted net income per share, adjusted operating income, earnings before interest, taxes depreciation and amortiz
Slide 23: Non-GAAP Reconciliation (unaudited) - EBITDA
Non-GAAP Reconciliation (unaudited) Q4 2010 Earnings Call Three Months Ended December 31, Year Ended December 31, 2010 2009 2010 2009 EBITDA Net income $ 8,650 $ 6,726 $ 16,215 $ 23,797 Interest expense 1,609 1,746 6,684 7,212 Provision for income taxes 9,296 884 11,473 8,621 Depreciation and amorti
Slide 24: Non-GAAP Reconciliation (unaudited) - Adjusted Net Income
Non-GAAP Reconciliation (unaudited) Q4 2010 Earnings Call Three Months Ended December 31, Year Ended December 31, 2010 2009 2010 2009 Adjusted Net Income and Adjusted Earnings per Share Net income $ 8,650 $ 6,726 $ 16,215 $ 23,797 Restructuring and other related charges 808 7,420 10,323 18,175 Asbes
Slide 25: Sales & Order Growth
Sales & Order Growth Three Months Ended December 31, 2009 Components of Change: Existing Businesses Acquisitions Foreign Currency Translation Total Three Months Ended December 31, 2010 Year ended December 31, 2009 Components of Change: Existing Businesses Acquisitions Foreign Currency Translation To
Slide 26: Non-GAAP Reconciliation - EPS Range
Non-GAAP Reconciliation (In dollars, unaudited) Q4 2010 Earnings Call EPS Range Projected net income per share - fully diluted $ 0.80 $ 0.90 Restructuring and other related charges 0.03 0.03 Asbestos coverage litigation 0.09 0.09 Asbestos liability and defense costs 0.08 0.08 Projected adjusted net