Slide 1: First Quarter 2012 Earnings Conference Call
First Quarter 2012 Earnings Conference Call May 8, 2012
Slide 2: Forward-Looking Statements
2 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 plans, objectives, e
Slide 3: Q1 2012 Results
Qi 2012 Results 3 COLFAX
Slide 4: Q1 2012 Highlights
4 Q1 2012 Highlights • Adjusted net income of $25.5 million ($0.23 per share) compared to $9.2 million ($0.21 per share) in Q1 2011 • Net sales of $886.4 million, an increase of 11.3% from first quarter 2011 proforma net sales of $796.5 million • Adjusted operating income of $63.4 million compared t
Slide 5: Gas- and Fluid-Handling
Gas- and Fluid- Handling 5 COLFAX
Slide 6: Gas- and Fluid-Handling Highlights
6 Gas - and Fluid - Handling Highlights • Net sales of $425.3 million compared to proforma net sales of $342.9 million in Q1 2011, an increase of 24.0% • Adjusted segment operating income of $40.7 million and adjusted segment operating income margin of 9.6% • First quarter orders of $497.5 million c
Slide 7: Orders and Backlog
7 Orders and Backlog 7 Orders (1) $451.9 $497.5 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 Q1 2011 Q1 2012 Backlog (1) $0.0 $250.0 $500.0 $750.0 $1,000.0 $1,250.0 $1,500.0 Q1 2009Q2 2009Q3 2009Q4 2009Q1 2010Q2 2010Q3 2010Q4 2010Q1 2011Q2 2011Q3 2011Q4 2011Q1 2012 (1) Order and back
Slide 8: Revenue
8 Revenue 8 Revenue (1) $342.9 $425.3 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 Q1 2011 Q1 2012 (1) Q1 2011 sales are presented on a proforma basis. __________________ Note: Dollars in millions (unaudited). Aftermarket Revenue Foremarket 69% Aftermarket 31% Geographic Exposure Dev
Slide 9: Q1 2012 Sales and Orders by End Market
9 Q1 2012 Sales and Orders by End Market 9 Sales: $425.3 million Orders: $497.5 million General Industrial and Other 25% Power Generation 31% Oil, Gas & Petro- chemical 25% Mining 6% Marine 13% Total (Decline) Growth Organic (Decline) Growth Power Generation 30.0 % 30.4 % Oil, Gas & Petrochemical 68
Slide 10: Power Generation Market Perspective
10 Power Generation Market Perspective 10 Sales & Orders Growth Q1 2012 vs. Q1 2011 Total Organic Sales 30.0% 30.4% Orders 0.9% 1.8% Colfax 2012 Sales Split 31% Power Gen. Colfax 2012 Orders Split Highlights ▪ Served by both Howden and Colfax Fluid Handling ▪ Driven by global fundamental undersupply
Slide 11: Oil, Gas & Petrochemical Market Perspective
11 Oil, Gas & Petrochemical Market Perspective 11 Sales & Orders Growth (Decline) Q1 2012 vs. Q1 2011 Total Organic Sales 68.7% 23.2% Orders 54.7% (17.6)% Colfax Q1 2012 Sales Split 25% OG&P Colfax Q1 2012 Orders Split 25% OG&P Highlights ▪ Served by both Howden and Colfax Fluid Handling ▪ Driven by
Slide 12: Marine Market Perspective
12 Marine Market Perspective 12 Sales & Orders (Decline) Q1 2012 vs. Q1 2011 Total Organic Sales (3.1)% (1.1)% Orders (5.6)% (3.5)% Colfax Q1 2012 Sales Split 13% Marine Colfax Q1 2012 Orders Split Highlights ▪ Comprised of commercial marine and government, or defense, customers ▪ Primarily served b
Slide 13: Mining Market Perspective
13 Mining Market Perspective 13 Sales & Orders Growth Q1 2012 vs. Q1 2011 Total Organic Sales 6.9% 10.1% Orders 21.5% 26.0% Colfax Q1 2012 Sales Split 6% Mining Colfax Q1 2012 Orders Split Highlights ▪ Primarily served by Howden ▪ Includes centrifugal and axial fans, providing mine ventilation ▪ Dri
Slide 14: General Industrial & Other Market Perspective
14 General Industrial & Other Market Perspective 14 Sales & Orders Growth (Decline) Q1 2012 vs. Q1 2011 Total Organic Sales 8.5% 9.1% Orders (4.1)% (5.5)% Colfax Q1 2012 Sales Split 25% GI&O Colfax Q1 2012 Orders Split Highlights ▪ Includes both Howden and Colfax Fluid Handling ▪ Represents a variet
Slide 15: Fabrication Technology
15 15 Fabrication Technology
Slide 16: Fabrication Technology Highlights
16 Fabrication Technology Highlights • Net sales of $461.1 million compared to proforma net sales of $453.6 million in Q1 2011, an increase of 1.6% • Adjusted segment operating income of $34.0 million and adjusted operating income margin of 7.4% • Higher volumes in North America and the Middle East
Slide 17: Revenue
17 Revenue 17 Revenue (1) $453.6 $461.1 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 Q1 2011 Q1 2012 (1) Q1 2011 sales are presented on a proforma basis. __________________ Note: Dollars in millions (unaudited). Revenue Equipment 22% Consumables 78% Geographic Exposure Developed Econ
Slide 18: Results of Operations
Results of Operations 18 COLFAX
Slide 19: Income Statement Summary
19 Income Statement Summary (unaudited) 19 Refer to Appendix for Non - GAAP reconciliation and footnotes. __________________ Note: Dollars in millions. Three Months Ended Change March 30, 2012 April 1, 2011 Sales $ 886.4 $ 158.6 Gross profit $ 255.4 $ 53.3 % of sales 28.8% 33.6% SG&A expense $ 225.7
Slide 20: Appendix
Appendix 20 COLFAX
Slide 21: Disclaimer
21 Disclaimer 21 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 and depreciation (EBITDA), adjusted EB
Slide 22: Non-GAAP Reconciliation
22 Non - GAAP Reconciliation (unaudited) ____________________ Note: Dollars in thousands. March 30, 2012 April 1, 2011 EBITDA Net (loss) income (100,461)$ 6,555$ Interest expense 18,982 1,827 Provision for income taxes 57,348 2,950 Depreciation and amortization 61,804 5,527 EBITDA 37,673$ 16,859$ EB
Slide 23: Non-GAAP Reconciliation
23 Non - GAAP Reconciliation (unaudited) ____________________ Note: Dollars in thousands. (1) The effective tax rates used to calculate adjusted net income and adjusted net income per share are 31% and 32% for the first qu arter of 2012 and 2011, respectively. (2) Adjusted net income per share was c
Slide 24: Non-GAAP Reconciliation
24 Non - GAAP Reconciliation (unaudited) Net sales -$ -$ Operating income 20,849 4.9% 10,880 2.4% (55,860) (24,131) (2.7)% 17,969$ 11.3% (6,637)$ 11,332$ 7.1% Charter acquisition-related expense - - 42,851 42,851 - - - Restructuring and other related charges 780 6,116 1,747 8,643 1,014 963 1,977 Asb
Slide 25: Sales & Order Growth
25 Sales & Order Growth (unaudited) ____________________ Note: Dollars in millions. $ % $ % $ % Proforma three months ended April 1, 2011 796.5$ 451.9$ 1,270.5$ Components of Change: Existing Businesses 81.9 10.3 % (11.0) (2.4)% 136.4 10.7 % Acquisitions 37.1 4.7 % 66.7 14.8 % 2.9 0.2 % Foreign Curr
Slide 26: 2012 Outlook Summary
26 2012 Outlook Summary Revenue Range 2012 Total (1) $4.0 billion To $4.1 billion EPS and Adjusted Net Income Range 2012 Net loss per share $(0.35) To $(0.15) Adjusted net income $172,500 To $193,700 2012 Adjusted net income per share (1) $1.45 To $1.65 Assumptions Asbestos coverage litigation $9 mi
Slide 27: 2012 Outlook Summary (continued)
27 2012 Outlook Summary (continued) Assumptions (continued) Depreciation $70 million Amortization $105 million Interest Expense (based on LIBOR = 25 bps, EURIBOR = 70 bps) $97 million Capital Expenditures 2.5% of revenue Pension funding in excess of expense $40 million Preferred dividend $19 million
Slide 28: Non-GAAP Reconciliation
28 Non - GAAP Reconciliation (unaudited) Projected net income per share - diluted $ (0.35) $ (0.15) Fair value adjustments - Charter inventory and backlog 0.78 0.78 Restructuring costs 0.30 0.30 Asbestos coverage litigation 0.09 0.09 Charter transaction costs 0.43 0.43 Tax adjustment 0.20 0.20 Proje