CIRCOR International — Q1 2021 Earnings Presentation
16 slides from CIRCOR International's earnings presentation, May 12, 2021
Slide 1: 2021 First Quarter Earnings Call
INDUSTRIAL AEROSPACE & DEFENSE 2021 First Quarter Earnings Call May 12, 2021 This presentation contains certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (the “Act”). The words “may,” “hope,” “should,” “expect,
Slide 2: 1Q'21 Reported Results
1Q’21 y/y vs. 4Q’20 2 Backlog Orders Organic % Revenue Organic % AOI AOI % GAAP EPS Adj. EPS FCF 421 227 181 12 6.9% $(0.35) $0.24 (21) 0% 9% 7% (6)% (8)% 12% 110 bps n/a 20% 23% 11% 35% 34% (13)% (14)% (47)% (430) bps n/a (64)% n/a Organic orders strength driven by large orders in Defense and recov
Slide 3: 1Q'21 Industrial Segment Highlights
$5 $5 $12 $10 1Q'20 Reported 1Q'20 4Q'20 1Q'21 1Q’21 Industrial Segment Highlights ($ millions) 1Q 2021 Orders • Broad market recovery with particular strength in EMEA, China, and rest of Asia • Timing of large international project orders in downstream • Book-to-bill of 1.3x 1Q 2021 Revenue • Enter
Slide 4: 1Q'21 Aerospace & Defense Segment Highlights
$12 $19 $11 1Q'20 4Q'20 1Q'21 $65 $78 $60 1Q'20 4Q'20 1Q'21 1Q’21 Aerospace & Defense Segment Highlights ($ millions) 1Q 2021 Orders • Received large Defense orders for JSF program and CVN aircraft carriers • Sequential improvement in Commercial Aerospace but demand remains below pre-COVID 19 levels
Slide 5: 1Q'21 Cash Flow and Debt Position
1Q’21 Cash Flow and Debt Position 5 1Q’201Q’21 y/y $(24)$(18) 26% Free cash flow in line with typical seasonality and timing of annual disbursements FCF improvement primarily driven by exit of upstream oil & gas Total debt reduced by $65 / (11)% … net debt up 7% driven by 1Q’21 FCF Expect to improve
Slide 6: 2Q'21 and 2021 Financial Framework
2Q’21 2021 Guide 2Q’21 and 2021 Financial Framework Org. revenue growth Adjusted EPS 2Q commentary 2021 commentary • Industrial: Recovery across virtually all end markets … deliveries increase in 2H’21 • A&D: Timing of backlog and large defense orders driving strong 2H’21… gradual improvement in Com
Slide 7: 2Q'21 Industrial Revenue Outlook
2Q’21 Industrial Revenue Outlook 7 L o n g C y c le S h o rt C y c le Primary End Market Share of 2020 revenue 2Q’21 y/y revenue Downstream Commercial Marine Midstream O&G Other end markets Long-cycle total Memo: Price Total Industrial Chemical processing Power Generation Machinery manufacturing Bui
Slide 8: 2Q'21 A&D Revenue Outlook
2Q’21 A&D Revenue Outlook 8 D e fe n s e C o m m e rc ia l Primary End Market Share of 2020 revenue 2Q’21 y/y revenue Top programs Other OEM Aftermarket Memo: Price Defense subtotal Boeing / Airbus Other OEM Aftermarket Memo: Price Commercial subtotal Other end markets Total A&D 27% 23% 19% 4% 69% 7
Slide 9: 1Q'21 Update 2021+ Strategic Priorities
1Q’21 Update 2021+ Strategic Priorities 9 • Accelerating growth in A&D … lean site visit • Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx • Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxx • Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx Planning to launch 45 ne products in 2021
Slide 10: Appendix
10 Appendix
Slide 11: GAAP Special Adjusted GAAP Special Adjusted Adj Ex Div* Sales 180.7 - 180.7 192.2
GAAP Special Adjusted GAAP Special Adjusted Adj Ex Div* Sales 180.7 - 180.7 192.2 - 192.2 187.3 Gross margin 56.1 5.5498 61.6 60.0 3.8 63.9 63.8 SG&A 56.5 (7.3) 49.2 59.6 (6.7) 52.8 52.8 Goodwill impairment charge - - - 116.2 (116.2) - - Special & restructuring income, net (0.8) 0.8 - (42.3) 42.3 -
Slide 12: Organic orders and revenue – vs. 1Q'20
Organic orders and revenue – vs. 1Q’20 12 CIRCOR Industrial Aerospace & Defense 1Q'21 1Q'20 V% 1Q'21 1Q'20 V% 1Q'21 1Q'20 V% Reported Orders $ 226,693 $ 208,474 9% $ 153,695 $ 136,443 13% $ 72,999 $ 72,031 1% Divestitures - (4,449) - (4,449) - - FX (8,690) - (7,549) - (1,141) - Organic Orders $ 218,
Slide 13: Organic orders and revenue – vs. 4Q'20
Organic orders and revenue – vs. 4Q’20 13 ($ in thousands) CIRCOR Industrial Aerospace & Defense 1Q'21 4Q'20 V% 1Q'21 4Q'20 V% 1Q'21 4Q'20 V% Reported Orders $ 226,693 $ 168,486 35% $ 153,695 $ 121,690 26% $ 72,999 $ 46,796 56% Divestitures - - - - - - FX (1,670) - (1,381) - (289) - Organic Orders $
Slide 14: CIRCOR End Market Exposure
CIRCOR End Market Exposure 14 Commercial Aerospace (5%) Defense (17%) Numbers may not add due to rounding. Machinery Manufacturing Commercial Marine Chemical Processing Midstream O&G Power Building & Construction Wastewater Other End Markets Downstream O&G (7%) Aerospace & Defense (8%) Industrial (2
Slide 15: Financial goals
Financial goals • +100 to 150 bps higher than end market growth driven by strategic initiatives • Continued execution on price initiatives • Near term (18-24 months) AOI% outlook • Industrial: low teens • A&D: mid-20s • CIRCOR Operating System delivering improved operating performance • FCF conversi
Slide 16: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Within this presentation the Company uses non-GAAP financial measures, including Adjusted operating income, Adjusted operating margin, Adjusted net income, Adjusted earnings per share (diluted), EBITDA, Adjusted EBITDA, net debt, free cash flow and organic growth (