CIRCOR International — Investor Presentation (January 2023)
24 slides from CIRCOR International's investor presentation, Jan 23, 2023
Slide 1: Industrial Aerospace & Defense Investor Presentation
INDUSTRIAL AEROSPACE & DEFENSE Investor Presentation January 23, 2022 EXHIBIT 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements that address expectations or projections about the future, including with respect to our ex
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Within this presentation, the Company uses the non-GAAP financial measures organic revenue, adjusted net income, EBITDA, adjusted EBITDA, Compliance Adjusted EBITDA, adjusted operating income, adjusted operating margin, adjusted earnings per share (diluted), net de
Slide 4: Flow Control for Mission-Critical Applications
Flow Control for Mission-Critical Applications • Leadership in served markets • Well-positioned on key aerospace and defense platforms • Leveraging core technology to drive growth in adjacent markets • Global and diverse end markets with longstanding loyal customer base • Large aftermarket platform
Slide 5: A&D Segment Revenue Profile
% Segment Revenue by End Market 61%17% 22% Defense Commercial Other % Segment Revenue by Region 23% 72% 5% EMEA North America Other 5 A&D Segment Revenue Profile1 Aftermarket 25-30% 1 References in this presentation to “Revenue Profile” refers to 2021 financial revenue by end market and geographic m
Slide 6: Industrial Segment Revenue Profile
% Segment Revenue by End Market 56% 15% 20% 9% General Industrial Commercial Marine Downstream O&G Other % Segment Revenue by Region 45% 29% 26% EMEA North America Other 6 Industrial Segment Revenue Profile1 Aftermarket 40-45% 1 References in this presentation to “Revenue Profile” refers to 2021 fin
Slide 7: Delivering on our Strategic Priorities
Delivering on our Strategic Priorities Margin Expansion Growth De-Levering our Balance Sheet • Value pricing • Simplification • Best-cost country sourcing and manufacturing • Factory modernization • Leveraging products and technologies in growing markets • Deepening customer engagement • Expanding s
Slide 8: YTD 2022 Highlights
YTD1 2022 Highlights 8 • Solid execution navigating supply chain constraints • Successful pricing execution more than offsetting inflation • Overhead cost reduction and cost controls • Demand environment remains positive • Backlog, orders and margin growth position us well for year end and into 2023
Slide 9: Leveraging Core Technology to Drive Growth in Adjacent Markets
9 Leveraging Core Technology to Drive Growth in Adjacent Markets Medical Devices Supply critical products used in blood collection devices and cardiac assist equipment to leading medical equipment OEMs FY’ 21 Orders: $18M September 2022 YTD Orders: $24M High pressure/ Low temperature transportation
Slide 10: Aftermarket, Missile and Bomb Fuzing, Control Actuation Systems
Aftermarket Pumps EMEA & APAC 10 Missile & Bomb Fuzing Switches and Brushless DC Motors Quick-response, severe environment, impact and acceleration switches for hypersonic missiles, bombs, and warhead arming Electric motors for missiles Control Actuation Systems Five new missile applications in vari
Slide 11: YTD 2022 Financial Results Summary
YTD1 2022 Financial Results Summary CIRCOR YTD’22 YTD’21 Change Backlog $497 $436 14% Orders 658 631 4% Organic % 10% Revenue 572 554 3% Organic % 9% GAAP operating income 42.6 (10.4) 511% GAAP operating margin 7.5% (1.9)% 940 bps Adjusted operating income (AOI) 54.3 33.8 60% AOI% 9.5% 6.1% 340 bps
Slide 12: YTD 2022 A&D Segment Highlights
YTD1 2022 A&D Segment Highlights 12 Aerospace & Defense YTD’22 YTD’21 Change Backlog $214 $181 18% Orders 237 181 31% Organic % 35% Revenue 203 183 11% Organic % 14% AOI $41.7 $37.7 11% AOI% 20.6% 20.6% 0% Organic Revenue, Adjusted Operating Income (AOI), and AOI% are non-GAAP measures. ($ in millio
Slide 13: YTD 2022 Industrial Segment Highlights
Industrial YTD’22 YTD’21 Change Backlog $283 $255 11% Orders 421 449 (6)% Organic % 0% Revenue 370 371 0% Organic % 6% AOI $31.1 $20.2 54% AOI% 8.4% 5.4% 300 bps 13 * Financial results include results from the Pipeline Engineering business includes $2.3 million of orders, $3.2M of revenue and $(4.4M
Slide 14: Quarterly Adjusted Operating Income
17.1% 19.4% 25.1% 17.9% 20.2% 23.4% Q1 Q2 Q3 A&D Segment AOI% 2021 2022 14 Quarterly Adjusted Operating Income 4.9% 5.7% 5.6%5.6% 6.8% 12.8% Q1 Q2 Q3 Industrial Segment AOI% 2021 2022 3.8% 5.9% 8.5% 5.6% 8.7% 14.0% Q1 Q2 Q3 CIRCOR AOI% 2021 2022 Adjusted Operating Income (AOI) and AOI % is a non-GAA
Slide 15: Net Debt and Leverage
15 Net Debt, Adjusted EBITDA and Compliance Adjusted EBITDA are non-GAAP measures. 1 – Net Debt defined as total debt (Term Loan B and revolvers) less cash or cash equivalents 2 – TTM defined as trailing twelve months 3 – Net Leverage is defined as calculated measure of net debt divided by adjusted
Slide 16: Business Outlook
Business Outlook • Ending 2022 with strong momentum - solid backlog • Industrial segment: • Leveraging strong aftermarket position and deploying value-based pricing • Focused on margin expansion and staying ahead of inflation in current macro-economic climate • A&D segment: • Benefitting from ongoin
Slide 17: Appendix
INDUSTRIAL AEROSPACE & DEFENSE Appendix
Slide 18: YTD Organic Orders and Revenue vs. PY
YTD1 Organic Orders and Revenue vs. PY 18 Organic Revenue is a non-GAAP measure. Note regarding financial statements: Amounts are computed independently each quarter; therefore, the sum of the quarterly amounts may not equal the total amount for the respective year due to rounding. 1 References in t
Slide 19: YTD GAAP Net (Loss) Income to EBITDA and Adjusted EBITDA
YTD1 GAAP Net (Loss) Income to EBITDA and Adjusted EBITDA 19 1 References in this presentation to “YTD” mean: (i) for 2022, through the nine months ended October 2, 2022; and (ii) for 2021, through the nine months ended October 3, 2021. Adjusted EBITDA is a non-GAAP measures. Note regarding financia
Slide 20: YTD GAAP Net (Loss) Income to Adjusted Net Income and Adjusted EPS
YTD1 GAAP Net (Loss) Income to Adjusted Net Income and Adjusted EPS (diluted) 20 1 References in this presentation to “YTD” mean: (i) for 2022, through the nine months ended October 2, 2022; and (ii) for 2021, through the nine months ended October 3, 2021. Adjusted Net Income ad Adjusted EPS are non
Slide 21: YTD Net Cash from Operating Activities to Adjusted Free Cash Flow
YTD1 Net Cash (Used In) Provided by Operating Activities to Adjusted Free Cash Flow 21 1 References in this presentation to “YTD” mean: (i) for 2022, through the nine months ended October 2, 2022; and (ii) for 2021, through the nine months ended October 3, 2021. Adjusted Free Cash Flow (FCF) is a no
Slide 22: 3Q'22 GAAP Operating Income to Adjusted Operating Income
3Q’22 GAAP Operating (Loss) Income to Adjusted Operating Income 22 Adjusted Operating Income (AOI) and AOI % are non-GAAP measures. Note regarding financial statements: Amounts are computed independently each quarter; therefore, the sum of the quarterly amounts may not equal the total amount for the
Slide 23: 3Q'22 Segment Information
3Q’22 Segment Information 23 1 Quantifies the impact of the Pipeline Engineering business on the Industrial Segment. Adjusted Operating Income (AOI) and AOI % are non-GAAP measures. Note regarding financial statements: Amounts are computed independently each quarter; therefore, the sum of the quarte
Slide 24: Reconciliation of Forward-Looking Non-GAAP Measures
Reconciliation of Forward-Looking Non-GAAP Measures 24 This presentation contains forward-looking estimates of organic revenue growth, AOI, adjusted EBITDA and adjusted EPS (diluted) for full year 2022, each of which are non-GAAP measures. We provide these non-GAAP measures to investors on a prospec
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