Crane Company · NYSE:CR
Crane — Q4 2021 Earnings Presentation
24 slides from Crane's earnings presentation, Jan 25, 2022
Slide 1: Crane Co. Q4 and Full-Year 2021 Earnings Release Call
Crane Co. Q4 and Full-Year 2021 Earnings Release Call
Slide 2: Forward-Looking Statements–Disclaimer
FORWARD-LOOKING STATEMENTS–DISCLAIMER This presentation may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the management’s current beliefs, expectations, plans, assumptions and objectives regarding Crane Co.’s fut
Slide 3: Q4 2021 Earnings Summary
Q4 2021 EARNINGS SUMMARY $ Millions except per-share amounts Q4 2021 Q4 2020 Change Sales* $771 $686 +12% Operating Profit** $93 $70 +33% Operating Margin** 12.1% 10.2% +190 bps Earnings per Share from Continuing Operations** $1.25 $0.92 +36% Free Cash Flow from Continuing Operations*** $129 $74 +74
Slide 4: Full-Year 2021 Earnings Summary
FULL-YEAR 2021 EARNINGS SUMMARY $ Millions except per-share amounts FY 2021 FY 2020 Change Sales* $3,180 $2,772 +15% Operating Profit** $501 $300 +67% Operating Margin** 15.8% 10.8% +500 bps Earnings per Share from Continuing Operations** $6.55 $3.53 +87% Free Cash Flow from Continuing Operations***
Slide 5: Full-Year 2021 Segment Results
FULL-YEAR 2021 SEGMENT RESULTS 2021 Sales Change Composition Segment Margin* Core M&A FX Total 2019 2020 2021 Change (2021 vs. 2020) Aerospace & Electronics (2.0%) -- +0.1% (1.9%) 24.1% 16.5% 17.2% +70 bps Process Flow Technologies +14.4% +0.5% +4.0% +19.0% 13.6% 11.4% 14.8% +340 bps Payment & Merch
Slide 6: Aerospace & Electronics
AEROSPACE & ELECTRONICS $ Millions Q4 2021 Q4 2020 Change Sales $158 $143 +10% Operating Profit* $21 $15 +40% Operating Margin* 13.1% 10.3% +280 bps Backlog $460 $491 (6%) Q4 2021 Highlights Q4 2021 Q4 2021 OE Sales +5% Core Growth +10.3% Aftermarket Sales +25% FX Translation (0.1%) OE/Aftermarket M
Slide 7: Aerospace & Electronics
AEROSPACE & ELECTRONICS $ Millions FY 2021 FY 2020 Change Sales $638 $651 (2%) Operating Profit* $110 $107 +3% Operating Margin* 17.2% 16.5% +70 bps Backlog $460 $491 (6%) FY 2021 Highlights FY 2021 FY 2021 OE Sales (3%) Core Growth (2.0%) Aftermarket Sales +2% FX Translation +0.1% OE/Aftermarket Mi
Slide 8: Process Flow Technologies
PROCESS FLOW TECHNOLOGIES $ Millions Q4 2021 Q4 2020 Change Sales $299 $258 +16% Operating Profit* $43 $28 +55% Operating Margin* 14.3% 10.7% +360 bps Backlog $358 $313 +14% Q4 2021 Highlights Q4 2021 • Compared to Q3 2021, sequential core backlog up +2% and core orders approximately flat Core Growt
Slide 9: Process Flow Technologies
PROCESS FLOW TECHNOLOGIES $ Millions FY 2021 FY 2020 Change Sales $1,197 $1,006 +19% Operating Profit* $177 $115 +54% Operating Margin* 14.8% 11.4% +340 bps Backlog $358 $313 +14% FY 2021 Highlights FY 2021 Core Growth +14.4% • Full-year core backlog +16% and core orders up +16% compared to 2020 Acq
Slide 10: Payment & Merchandising Technologies
PAYMENT & MERCHANDISING TECHNOLOGIES $ Millions Q4 2021 Q4 2020 Change Sales* $314 $285 +10% Operating Profit** $58 $42 +38% Operating Margin** 18.5% 14.7% +380 bps Q4 2021 Highlights Q4 2021 • Compared to Q3 2021, sequential core backlog up +14% and core orders down (3%) Core Growth +10.4% • Compar
Slide 11: Payment & Merchandising Technologies
PAYMENT & MERCHANDISING TECHNOLOGIES $ Millions FY 2021 FY 2020 Change Sales* $1,345 $1,115 +21% Operating Profit** $304 $137 +122% Operating Margin** 22.6% 12.3% +1,030 bps FY 2021 Highlights FY 2021 • Full-year core backlog +33% and core orders up +28% compared to 2020 Core Growth +18.0% FX Transl
Slide 12: Cash Flow, Balance Sheet and Tax
CASH FLOW, BALANCE SHEET AND TAX $ Millions Q4 2021 Q4 2020 Better/(Worse) Cash Provided from Operating Activities $155 $87 $68 Capital Expenditures ($26) ($13) ($13) Free Cash Flow from Continuing Operations* $129 $74 $55 Effective (GAAP) Tax Rate 13.8% 5.1% (870 bps) Non-GAAP (adjusted) Tax Rate**
Slide 13: 2022 Guidance Summary: Continuing Operations Basis
2022 GUIDANCE SUMMARY: CONTINUING OPERATIONS BASIS $ Millions except per share amounts 2021 2022G Change*** Net Sales $3,180 $3,300 +4% Earnings per Share* $6.55 $7.00-$7.40 +10% Free Cash Flow** $415 $350-$390 (11%) 2022G Other 2022 Guidance Details Core Growth +4% to +6% ◼ Adjusted tax rate of ~21
Slide 14: 2022 Segment Guidance
2022 SEGMENT GUIDANCE Core Growth Segment Margin** 2021 2022G 2019 2020 2021 2022G Change (2022G vs. 2021) Aerospace & Electronics (2%) +8% 24.1% 16.5% 17.2% 18.0% +80 bps Process Flow Technologies +14% +3% 13.6% 11.4% 14.8% 15.5% +70 bps Payment & Merchandising +18% +5% 16.2% 12.3% 22.6% 22.0% (60
Slide 15: Structural Free Cash Conversion Improving
STRUCTURAL FREE CASH CONVERSION* IMPROVING Free Cash Conversion Free Cash Conversion (Excluding Asbestos) 120% 120% 100% 100% Average 111% (2016-2022G) Average 99% Average 99% (2016-2022G) 80% 80% (2010-2015) Average 78% (2010-2015) 60% 60% 40% 40% 20% 20% 0% 0% 2022G 2022G 2010 2011 2012 2013 2014
Slide 16: Non-GAAP Information
» NON-GAAP INFORMATION 16
Slide 17: Non-GAAP Explanation
NON-GAAP EXPLANATION Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Certain non-GAAP measures are provided in this presentation. Management believes that non-GAAP financial measures which exclude certain
Slide 18: Non-GAAP Financial Measures: Income Items (1/2)
NON-GAAP FINANCIAL MEASURES: INCOME ITEMS (1/2) (in millions, except per share data) Three Months Ended December 31, 2021 2020 % Change $ Per Share $ Per Share (on $) Net sales (GAAP) $ 770.5 $ 683.7 12.7 % Acquisition-related deferred revenue1 — 2.5 Net sales before special items (adjusted) $ 770.5
Slide 19: Non-GAAP Financial Measures: Income Items (2/2)
NON-GAAP FINANCIAL MEASURES: INCOME ITEMS (2/2) (in millions, except per share data) Twelve Months Ended December 31, 2021 2020 % Change $ Per Share $ Per Share (on $) Net sales (GAAP) $ 3,180.0 $ 2,761.3 15.2 % Acquisition-related deferred revenue 1 — 10.2 Net sales before special items (adjusted)
Slide 20: Non-GAAP Financial Measures: Segment Data (1/2)
NON-GAAP FINANCIAL MEASURES: SEGMENT DATA (1/2) (in millions) Payment & Aerospace & Process Flow Total Merchandising Three Months Ended December 31, 2021 Electronics Technologies Corporate Company Technologies Net sales (GAAP) $ 158.1 $ 298.7 $ 313.7 $ — $ 770.5 Operating profit (GAAP) $ 20.7 $ 41.5
Slide 21: Non-GAAP Financial Measures: Segment Data (2/2)
NON-GAAP FINANCIAL MEASURES: SEGMENT DATA (2/2) (in millions) Payment & Aerospace & Process Flow Total Merchandising Corporate Twelve Months Ended December 31, 2021 Electronics Technologies Company Technologies Net sales (GAAP) $ 638.3 $ 1,196.6 $ 1,345.1 $ — $ 3,180.0 Operating profit (GAAP) $ 110.
Slide 22: Non-GAAP Financial Measures: Guidance & Cash Flow
NON-GAAP FINANCIAL MEASURES: GUIDANCE & CASH FLOW 2022 Earnings from Continuing Operations per Share Guidance Low High Earnings from continuing operations per diluted share (GAAP) $ 6.85 $ 7.25 Special items impacting earnings per share 0.15 0.15 Earnings from continuing operations per diluted share
Slide 23: Non-GAAP Financial Measures: Cash Flow
NON-GAAP FINANCIAL MEASURES: CASH FLOW *Reconciliations of Free Cash Flow and Free Cash Flow Conversion (in $ millions) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022G** Cash provided from operations 134 150 235 239 264 229 318 318 414 394 310 467 430 Capital expenditures (21) (35)
Slide 24: Jason D. Feldman
Jason D. Feldman Vice President of Investor Relations 203-363-7329