Slide 1: First Quarter 2013 Earnings Conference Call
FIRST QUARTER 2013 | EARNINGS CONFERENCE CALL
Slide 2: Forward-Looking Statements
2 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
Slide 3: COLFAX
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Slide 4: Q1 2013 Highlights
4 Q1 2013 HIGHLIGHTS • Adjusted net income of $33.6 million ($0.26 per share) compared to $25.5 million ($0.23 per share) in Q1 2012 • Net sales of $947.1 million, an increase of 6.8% from Q1 2012 net sales of $886.4 million (an organic decrease of 2.7%) • Adjusted operating income of $78.2 million
Slide 5: Gas and Fluid Handling
GAS AND FLUID HANDLING
Slide 6: Gas and Fluid Handling Highlights
6 GAS AND FLUID HANDLING HIGHLIGHTS • Net sales of $425.1 million remained relatively consistent with prior year net sales of $425.3 million in Q1 2012 (an organic decline of 1.7%) • Adjusted segment operating income of $44.2 million and adjusted segment operating income margin of 10.4% • First quar
Slide 7: Orders and Backlog
7 ORDERS AND BACKLOG $497.5 $502.1 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 Q1 2012 Q1 2013 $0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 $1,400.00 $1,600.00 $1.38B $1.37B ORDERS BACKLOG(1) Q1 Existing Businesses (4.3)% Acquisitions 6.7 % FX Translation (1.5)% Total Growth 0.9 % (1
Slide 8: Geographic Exposure
8 GEOGRAPHIC EXPOSURE Q1 2013 REVENUE $425.3 $425.1 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 Q1 2012 Q1 2013 67% 33% Foremarket Aftermarket REVENUE AFTERMARKET REVENUE Q1 2013 55% 45% Developed Economies Emerging Markets Note: Dollars in millions (unaudited). Q1 Existing Businesses (1.7)% Acqu
Slide 9: Q1 2013 Sales and Orders by End Market
9 Q1 2013 SALES AND ORDERS BY END MARKET Power Generation 37% Oil, Gas & Petro-chemical 21% Marine 13% Mining 6% General Industrial and Other 23% SALES: $425.1 Million Total Growth (Decline) Organic Growth (Decline) Power Generation 18.3 % 19.7% Oil, Gas & Petrochemical (15.9)% (19.0)% Marine 1.2 %
Slide 10: Power Generation Market Perspective
10 POWER GENERATION MARKET PERSPECTIVE SALES & ORDERS GROWTH Q1 2013 vs. Q1 2012 Total Organic Sales 18.3 % 19.7 % Orders 26.7 % 18.4 % 42% • Served by both Howden and Colfax Fluid Handling • Driven by fundamental global undersupply of electricity • Growth is driven by environmental upgrades in Chin
Slide 11: Oil, Gas & Petrochemical Market Perspective
11 OIL, GAS & PETROCHEMICAL MARKET PERSPECTIVE SALES & ORDERS DECLINE 25% • Served by both Howden and Colfax Fluid Handling • Period over period comparisons are difficult due to the timing of large projects • Quoting activity remains strong across all major served markets led by transportation, low
Slide 12: Marine Market Perspective
12 MARINE MARKET PERSPECTIVE SALES & ORDERS GROWTH (DECLINE) 11% • Primarily served by Colfax Fluid Handling • Q1 orders strong for oil & gas service vessels • Modest growth despite continued decline in overall shipbuilding activity Q1 2013 SALES SPLIT Q1 2013 ORDERS SPLIT 13% HIGHLIGHTS Note: Marin
Slide 13: Mining Market Perspective
13 MINING MARKET PERSPECTIVE SALES & ORDERS GROWTH (DECLINE) 3% • Primarily served by Howden • Driven by demand of mined resources, including: coal, iron ore, copper, gold, nickel and potash • Overall market environment in capital equipment for mining applications remains subdued, particularly in Au
Slide 14: General Industrial & Other Market Perspective
14 GENERAL INDUSTRIAL & OTHER MARKET PERSPECTIVE SALES & ORDERS DECLINE 19% • Includes both Howden and Colfax Fluid Handling • Broad-based decline across geographies and end-market segments Q1 2013 SALES SPLIT Q1 2013 ORDERS SPLIT 23% HIGHLIGHTS Q1 2013 vs. Q1 2012 Total Organic Sales (9.6)% (15.2)%
Slide 15: Fabrication Technology
FABRICATION TECHNOLOGY
Slide 16: Fabrication Technology Highlights
16 FABRICATION TECHNOLOGY HIGHLIGHTS • Net sales of $522.0 million compared to net sales of $461.1 million in Q1 2012, an increase of 13.2% (an organic decline of 3.7%) • Adjusted segment operating income of $44.5 million and adjusted segment operating income margin of 8.5% • Excluding Soldex: – Gro
Slide 17: Geographic Exposure
17 GEOGRAPHIC EXPOSURE Q1 2013 REVENUE $461.1 $522.0 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 Q1 2012 Q1 2013 77% 23% Consumables Equipment REVENUE REVENUE Q1 2013 38% 62% Developed Economies Emerging Markets Note: Dollars in millions (unaudited). Q1 Volume (7.3)% Price/ Mix 3.6% Acquisitions
Slide 18: Results of Operations
RESULTS OF OPERATIONS
Slide 19: Income Statement Summary
19 INCOME STATEMENT SUMMARY (unaudited) Refer to Appendix for Non-GAAP reconciliation and footnotes. Note: Dollars in millions, except per share amounts. March 29, 2013 March 30, 2012 Net sales 947.1$ 886.4$ Gross profit 290.7$ 241.7$ % of sales 30.7 % 27.3 % SG&A expense 212.5$ 212.1$ % of sales 22
Slide 20: eee. SS
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Slide 21: Disclaimer
21 DISCLAIMER 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, organic sales growth (decline) and organic order growth (decline). Adjusted
Slide 22: Non-GAAP Reconciliation
22 NON-GAAP RECONCILIATION (unaudited) (1) The effective tax rates used to calculate adjusted net income and adjusted net income per share are 30.5% and 31% for the first quarter of 2013 and 2012, respectively. (2) Adjusted net income per share was calculated consistent with the two-class method in
Slide 23: Non-GAAP Reconciliation
23 NON-GAAP RECONCILIATION (unaudited) _____________________ Note: Dollars in thousands. Corporate and Other Corporate and Other Net sales —$ —$ Operating income (loss) 41,215 9.7 % 41,527 8.0 % (10,415) 72,327 7.6 % 19,028 4.5 % 10,880 2.4 % (54,039) (24,131) (2.7)% Charter acquisition-related expe
Slide 24: Sales & Orders Growth
24 SALES & ORDERS GROWTH (unaudited) _____________________ Note: Dollars in thousands. $ % $ % $ % As of and for the three months ended March 30, 2012 886.4$ 497.5$ 1,372.8$ Components of Change: Existing Businesses (24.0) (2.7)% (21.5) (4.3)% 59.0 4.3 % Acquisitions (1) 105.2 11.9 % 33.5 6.7 % 19.8