Company Website:
http://www.craneco.com
STAMFORD, Conn. -- (Business Wire)
Crane Co. (NYSE:CR), a diversified manufacturer of highly engineered
industrial products, reported first quarter 2014 earnings of $0.82 per
diluted share, compared to $0.99 per share in the first quarter of 2013.
First quarter 2014 results included after-tax items of $9.2 million, or
$0.16 per share, related to the recent acquisition of MEI, and after-tax
charges of $4.3 million, or $0.07 per share, related to previously
disclosed repositioning activities. First quarter 2013 results included
after-tax transaction costs of $2.9 million, or $0.05 per share, related
to the MEI acquisition. Excluding these Special Items in both years,
first quarter 2014 earnings per diluted share increased 1% to $1.05,
compared to $1.04 in the first quarter of 2013. First quarter 2013
earnings included a $0.05 per share benefit associated with the
reinstatement of the R&D tax credit in the United States. (Please see
the attached Non-GAAP Financial Measures table.)
First quarter 2014 sales of $716.8 million increased $89.3 million, or
14.2%, compared to $627.6 million in the first quarter of 2013,
resulting from a core sales increase of $6.3 million, or 1.0%, sales
related to the MEI transaction of $84.1 million, or 13.4%, and
unfavorable foreign exchange of $1.2 million, or -0.2%.
Operating profit in the first quarter decreased 6.3% to $81.4 million,
compared to $86.9 million in the first quarter of 2013. Excluding
Special Items, first quarter operating profit increased 12.4% to $100.9
million, compared to $89.8 million in the first quarter of 2013. (Please
see the attached Non-GAAP Financial Measures table.)
“We are pleased to report first quarter EPS of $1.05, excluding Special
Items,” said Crane Co. president and chief executive officer Max
Mitchell. “The integration of MEI is progressing smoothly, and we remain
confident in delivering accretion of $0.20 per share in 2014. In
addition, our repositioning actions that will benefit 2015 and 2016 are
underway, and we are executing on our long-term growth investments, in
particular in our Aerospace & Electronics businesses. We believe that we
are on track to achieve our 2014 objectives, and are reaffirming our
previously issued full year guidance.”
Cash Flow and Other Financial Metrics
Cash used for operating activities in the first quarter of 2014 was
$18.9 million, compared to $20.4 million in the first quarter of 2013.
Capital expenditures in the first quarter of 2014 were $9.4 million,
compared to $5.5 million in the first quarter of 2013. The Company’s
cash position was $250.3 million at March 31, 2014, compared to $270.6
million at December 31, 2013. Total debt was $893.0 million at March 31,
2014, compared to $875.0 million at December 31, 2013.
The effective tax rate was 31.9% in the first quarter of 2014, compared
to 28.2% in the first quarter of 2013. Adjusting for Special Items, the
tax rate was 31.7% in the first quarter of 2014, compared to 27.3% in
the first quarter of 2013. The lower tax rate in the first quarter of
2013 reflected the aforementioned $0.05 per share benefit from the
reinstatement of the R&D tax credit.
Segment Results
All comparisons detailed in this section refer to operating results for
the first quarter 2014 versus the first quarter 2013.
Fluid Handling
|
|
|
| |
| |
| | | |
First Quarter
| |
Change
|
(dollars in millions) | | | |
2014
|
|
2013
| | |
| |
| | | | | | | | | |
|
Sales
| | | |
$
|
310.8
| | |
$
|
313.0
| | | |
($2.2
|
)
| |
-0.7
|
%
|
| | | | | | | | | |
|
Operating Profit
| | | |
$
|
44.5
| | |
$
|
45.9
| | | |
($1.4
|
)
| |
-3.0
|
%
|
Operating Profit, before Special Items*
| |
$
|
47.7
| | |
$
|
45.9
| | |
$
|
1.8
| | |
4.0
|
%
|
| | | | | | | | | |
|
Profit Margin
| | | | |
14.3
|
%
| | |
14.7
|
%
| | | | |
Profit Margin, before Special Items*
| | |
15.4
|
%
| | |
14.7
|
%
| | | | |
| | | | | | | | | |
|
*Excludes $3.2 million of repositioning charges in the first quarter
of 2014
|
|
|
First quarter 2014 sales decreased $2.2 million, or -0.7%, which
included a core sales decline of $1.9 million, or -0.6%, and unfavorable
foreign exchange of $0.3 million, or -0.1%. The core sales decline was
driven by continued softness in Canadian end markets and unfavorable
comparisons for nuclear project based services. Excluding Special Items,
segment operating margin increased from 14.7% to 15.4%, primarily
reflecting continued productivity gains. Fluid Handling order backlog
was $351 million at March 31, 2014, compared to $334 million at December
31, 2013 and $365 million at March 31, 2013. The year-over-year decrease
in backlog was driven primarily by the timing of nuclear project based
services.
Payment & Merchandising Technologies
|
|
|
| |
| |
| | | |
First Quarter
| |
Change
|
(dollars in millions) | | | |
2014
|
|
2013
| | |
| |
| | | | | | | | | |
|
Sales
| | | |
$
|
169.1
| | |
$
|
89.5
| | |
$
|
79.6
| | |
89.0
|
%
|
| | | | | | | | | |
|
Operating Profit
| | | |
$
|
7.4
| | |
$
|
10.2
| | | |
($2.7
|
)
| |
-26.7
|
%
|
Operating Profit, before Special Items*
| | | |
$
|
19.8
| | |
$
|
10.2
| | |
$
|
9.6
| | |
94.9
|
%
|
| | | | | | | | | |
|
Profit Margin
| | | | |
4.4
|
%
| | |
11.4
|
%
| | | | |
Profit Margin, before Special Items*
| | | | |
11.7
|
%
| | |
11.4
|
%
| | | | |
| | | | | | | | | |
|
* Excludes $12.4 million of transaction- and integration-related
expenses in 2014
|
| | |
|
Segment sales of $169.1 million increased $79.6 million, or 89.0%,
driven primarily by $84.1 million of sales related to the MEI
transaction, which was partially offset by an expected core sales
decline of $3.3 million, or -3.7%, and unfavorable foreign exchange of
$1.1 million, or -1.2%. As a reminder, MEI added additional unfavorable
seasonality to the first quarter. Merchandising Systems sales were flat
compared to last year. Excluding Special Items, operating profit
increased to $19.8 million in the quarter, primarily reflecting the
impact of the MEI acquisition.
Aerospace & Electronics
|
|
|
| |
| |
| | | |
First Quarter
| |
Change
|
(dollars in millions) | | | |
2014
|
|
2013
| | |
| |
| | | | | | | | | |
|
Sales
| | | |
$
|
169.0
| | |
$
|
164.9
| | |
$
|
4.1
| | |
2.5
|
%
|
| | | | | | | | | |
|
Operating Profit
| | | |
$
|
32.6
| | |
$
|
40.1
| | | |
($7.6
|
)
| |
-18.8
|
%
|
Operating Profit, before Special Items*
| | | |
$
|
35.4
| | |
$
|
40.1
| | | |
($4.7
|
)
| |
-11.8
|
%
|
| | | | | | | | | |
|
Profit Margin
| | | | |
19.3
|
%
| | |
24.3
|
%
| | | | |
Profit Margin, before Special Items*
| | | | |
20.9
|
%
| | |
24.3
|
%
| | | | |
| | | | | | | | | |
|
* Excludes $2.8 million of repositioning charges in the first
quarter of 2014
|
|
First quarter 2014 sales increased $4.1 million, or 2.5%, reflecting a
sales increases of $5.3 million, or 5.1%, in the Aerospace Group, and a
sales decline of $1.2 million, or -2.0%, in the Electronics Group. The
Aerospace Group sales increase reflected stronger commercial OEM and
aftermarket sales activity. The decrease in Electronics Group sales was
driven primarily by lower product shipments for defense applications.
Excluding Special items, segment operating profit decreased $4.7
million, primarily due to anticipated higher engineering spending and
other program investments supporting new product development. Aerospace
& Electronics order backlog was $398 million at March 31, 2014, compared
to $361 million at December 31, 2013, and $398 million at March 31, 2013.
Engineered Materials
|
|
|
|
| |
| |
| |
| | | |
First Quarter
| |
Change
|
(dollars in millions) | | | |
2014
| |
2013
| | | | |
| | | | | | | | | |
|
Sales
| | | |
$
|
67.9
| | |
$
|
60.2
| | |
$
|
7.7
| |
12.8
|
%
|
| | | | | | | | | |
|
Operating Profit
| | | |
$
|
10.8
| | |
$
|
8.6
| | |
$
|
2.2
| |
25.9
|
%
|
| | | | | | | | | |
|
Profit Margin
| | | | |
15.9
|
%
| | |
14.2
|
%
| | | | |
| | | | | | | | | |
|
Segment sales of $67.9 million were 12.8% higher than the first quarter
of 2013, primarily driven by higher sales to recreational vehicle
equipment manufacturers. Operating profit increased 25.9% to $10.8
million, and margins increased from 14.2% to 15.9%, primarily reflecting
the impact of the higher sales.
2014 Guidance Reaffirmed
The Company reaffirmed its 2014 guidance which was initially provided on
January 27, 2014. Sales for 2014 are expected to be $3.0 billion, driven
by a core sales increase of 1% to 3%, and a 14% contribution from the
MEI acquisition. The 2014 earnings guidance is a range of $4.55 - $4.75
per diluted share, excluding previously disclosed Special Items.
Including the Special Items, 2014 earnings guidance on a GAAP basis is a
range of $4.28 - $4.48 per diluted share. Full year 2014 free cash flow
(cash provided by operating activities less capital spending) is
expected to be in a range of $225 to $250 million. (Please see the
attached Non-GAAP Financial Measures table.)
Additional Information
Please see the Non-GAAP Financial Measures table attached to this press
release for supporting details. Additional information with respect to
the Company’s asbestos liability and related accounting provisions and
cash requirements is set forth in the Current Report on Form 8-K filed
with a copy of this press release.
Conference Call
Crane Co. has scheduled a conference call to discuss the first quarter
financial results on Tuesday, April 29, 2014 at 10:00 A.M. (Eastern).
All interested parties may listen to a live webcast of the call at http://www.craneco.com.
An archived webcast will also be available to replay this conference
call directly from the Company’s website. Slides that accompany the
conference call will be available on the Company’s website.
Crane Co. is a diversified manufacturer of highly engineered industrial
products. Founded in 1855, Crane provides products and solutions to
customers in the hydrocarbon processing, petrochemical, chemical, power
generation, unattended payment, automated merchandising, aerospace,
electronics, transportation and other markets. The Company has four
business segments: Fluid Handling, Payment & Merchandising Technologies,
Aerospace & Electronics and Engineered Materials. Crane has
approximately 11,000 employees in North America, South America, Europe,
Asia and Australia.
Crane Co. is traded on the New York Stock Exchange (NYSE:CR). For more
information, visit www.craneco.com.
This press release may contain forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995.These
statements present management’s expectations, beliefs, plans and
objectives regarding future financial performance, and assumptions or
judgments concerning such performance.Any discussions contained
in this press release, except to the extent that they contain historical
facts, are forward-looking and accordingly involve estimates,
assumptions, judgments and uncertainties.There are a number of
factors that could cause actual results or outcomes to differ materially
from those addressed in the forward-looking statements.Such
factors are detailed in the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2013 and subsequent reports filed with
the Securities and Exchange Commission.
(Financial Tables Follow)
|
|
|
| | |
| | |
CRANE CO. |
Income Statement Data |
(in thousands, except per share data)
|
| | | | | | | |
|
| | | |
Three Months Ended
|
| | | |
March 31,
|
| | | |
2014
| |
2013
|
Net Sales: | | | | | | | | |
Fluid Handling
| | | |
$
|
310,837
| | |
$
|
312,998
| |
Payment & Merchandising Technologies
| | | | |
169,092
| | | |
89,461
| |
Aerospace & Electronics
| | | | |
168,960
| | | |
164,882
| |
Engineered Materials
| | | | |
67,941
|
| | |
60,230
| |
Total Net Sales | | | |
$
|
716,830
|
| |
$
|
627,571
| |
| | | | | | | |
|
Operating Profit (Loss): | | | | | | | | |
Fluid Handling
| | | |
$
|
44,501
| | |
$
|
45,891
| |
Payment & Merchandising Technologies
| | | | |
7,447
| | | |
10,165
| |
Aerospace & Electronics
| | | | |
32,557
| | | |
40,111
| |
Engineered Materials
| | | | |
10,793
| | | |
8,574
| |
Corporate *
| | | | |
(13,912
|
)
| | |
(17,841
|
)
|
Total Operating Profit | | | | |
81,386
| | | |
86,900
| |
| | | | | | | |
|
Interest Income
| | | | |
388
| | | |
632
| |
Interest Expense
| | | | |
(9,809
|
)
| | |
(6,718
|
)
|
Miscellaneous- Net
| | | | |
(204
|
)
| | |
(120
|
)
|
Income Before Income Taxes
| | | | |
71,761
| | | |
80,694
| |
Provision for Income Taxes
| | | | |
22,889
|
| | |
22,752
| |
Net income before allocation to noncontrolling interests
| | | | |
48,872
| | | |
57,942
| |
| | | | | | | |
|
Less: Noncontrolling interest in subsidiaries' earnings
| | | | |
188
| | | |
151
| |
| | | | | | | |
|
Net income attributable to common shareholders
| | | |
$
|
48,684
|
| |
$
|
57,791
| |
| | | | | | | |
|
Share Data: | | | | | | | | |
Earnings per Diluted Share
| | | |
$
|
0.82
| | |
$
|
0.99
| |
| | | | | | | |
|
Average Diluted Shares Outstanding
| | | | |
59,514
| | | |
58,389
| |
Average Basic Shares Outstanding
| | | | |
58,516
| | | |
57,479
| |
| | | | | | | |
|
Supplemental Data: | | | | | | | | |
Cost of Sales
| | | |
$
|
457,954
| | |
$
|
409,819
| |
Selling, General & Administrative
| | | | |
157,936
| | | |
127,964
| |
Repositioning Charges (see non-GAAP measures)
| | | | |
6,050
| | | |
-
| |
Acquisition Related Charges (see non-GAAP measures)
| | | | |
13,504
| | | |
2,888
| |
Depreciation and Amortization **
| | | | |
21,775
| | | |
12,710
| |
Stock-Based Compensation Expense
| | | | |
5,647
| | | |
5,379
| |
| | | | | | | |
|
* Corporate included acquisition related cost of $1.1 million and
$2.9 million for the three months ended March 31, 2014 and 2013,
respectively.
|
** Amount included within cost of sales and selling, general &
administrative costs.
|
|
|
|
| | |
| | |
CRANE CO. |
Condensed Balance Sheets |
(in thousands)
|
| | | | | | | |
|
| | | | |
March 31,
| | |
December 31,
|
| | | |
2014
| |
2013
|
| | | | | | | |
|
ASSETS | | | | | | | | |
Current Assets
| | | | | | | | |
Cash and Cash Equivalents
| | | |
$
|
250,274
| |
$
|
270,643
|
Accounts Receivable, net
| | | | |
457,180
| | |
437,541
|
Current Insurance Receivable - Asbestos
| | | | |
22,783
| | |
22,783
|
Inventories, net
| | | | |
389,301
| | |
368,886
|
Other Current Assets
| | | | |
50,548
| | |
49,239
|
Total Current Assets
| | | | |
1,170,086
| | |
1,149,092
|
| | | | | | | |
|
Property, Plant and Equipment, net
| | | | |
303,778
| | |
305,055
|
Long-Term Insurance Receivable - Asbestos
| | | | |
143,044
| | |
148,222
|
Other Assets
| | | | |
689,337
| | |
707,922
|
Goodwill
| | | | |
1,247,100
| | |
1,249,316
|
| | | | | | | |
|
Total Assets | | | |
$
|
3,553,345
| |
$
|
3,559,607
|
| | | | | | | |
|
LIABILITIES AND EQUITY | | | | | | | | |
Current Liabilities
| | | | | | | | |
Notes Payable and Current Maturities of Long-Term Debt
| | | |
$
|
143,804
| |
$
|
125,826
|
Accounts Payable
| | | | |
214,107
| | |
229,828
|
Current Asbestos Liability
| | | | |
88,038
| | |
88,038
|
Accrued Liabilities
| | | | |
233,505
| | |
223,148
|
Income Taxes
| | | | |
1,519
| | |
2,062
|
Total Current Liabilities
| | | | |
680,973
| | |
668,902
|
| | | | | | | |
|
Long-Term Debt
| | | | |
749,181
| | |
749,170
|
Long-Term Deferred Tax Liability
| | | | |
50,907
| | |
76,041
|
Long-Term Asbestos Liability
| | | | |
592,428
| | |
610,530
|
Other Liabilities
| | | | |
220,411
| | |
240,291
|
| | | | | | | |
|
Total Equity
| | | | |
1,259,445
| | |
1,214,673
|
| | | | | | | |
|
Total Liabilities and Equity | | | |
$
|
3,553,345
| |
$
|
3,559,607
|
| | | | | | | |
|
|
|
|
| |
| |
CRANE CO. |
Condensed Statements of Cash Flows |
(in thousands)
|
| | | | | |
|
| | | |
Three Months Ended
|
| | | |
March 31,
|
| | | |
2014
| |
2013
|
Operating Activities: | | | | | | |
Net income attributable to common shareholders
| | | |
$
|
48,684
| | |
$
|
57,791
| |
Noncontrolling interest in subsidiaries' earnings
| | | |
|
188
|
| |
|
151
|
|
Net income before allocations to noncontrolling interests
| | | | |
48,872
| | | |
57,942
| |
Restructuring - Non Cash
| | | | |
366
| | | |
-
| |
Depreciation and amortization
| | | | |
21,775
| | | |
12,710
| |
Stock-based compensation expense
| | | | |
5,647
| | | |
5,379
| |
Defined benefit plans and postretirement expense
| | | | |
(2,908
|
)
| | |
943
| |
Deferred income taxes
| | | | |
4,738
| | | |
8,200
| |
Cash used for operating working capital
| | | | |
(69,322
|
)
| | |
(98,534
|
)
|
Defined benefit plans and postretirement contributions
| | | | |
(4,761
|
)
| | |
(2,816
|
)
|
Environmental payments, net of reimbursements
| | | | |
(2,683
|
)
| | |
(3,505
|
)
|
Other
| | | |
|
(7,709
|
)
| |
|
9,771
|
|
Subtotal
| | | | |
(5,985
|
)
| | |
(9,910
|
)
|
Asbestos related payments, net of insurance recoveries
| | | |
|
(12,925
|
)
| |
|
(10,493
|
)
|
Total used for operating activities | | | |
|
(18,910
|
)
| |
|
(20,403
|
)
|
| | | | | |
|
Investing Activities: | | | | | | |
Capital expenditures
| | | | |
(9,393
|
)
| | |
(5,473
|
)
|
Proceeds from disposition of capital assets
| | | |
|
231
|
| |
|
196
|
|
Total used for investing activities | | | |
|
(9,162
|
)
| |
|
(5,277
|
)
|
| | | | | |
|
Financing Activities: | | | | | | |
Dividends paid
| | | | |
(17,616
|
)
| | |
(16,144
|
)
|
Stock options exercised - net of shares reacquired
| | | | |
3,752
| | | |
10,389
| |
Excess tax benefit from stock-based compensation
| | | | |
5,145
| | | |
2,928
| |
Change in short-term debt
| | | |
|
18,000
|
| |
|
-
|
|
Total provided by (used for) financing activities | | | |
|
9,281
|
| |
|
(2,827
|
)
|
| | | | | |
|
Effect of exchange rate on cash and cash equivalents
| | | |
|
(1,578
|
)
| |
|
(10,801
|
)
|
Decrease in cash and cash equivalents
| | | | |
(20,369
|
)
| | |
(39,308
|
)
|
Cash and cash equivalents at beginning of period
| | |
|
|
270,643
|
| |
|
423,947
|
|
Cash and cash equivalents at end of period
| | |
|
$
|
250,274
|
| |
$
|
384,639
|
|
| | | | | | | | | |
|
|
|
|
| | |
| | |
| |
| |
| |
CRANE CO. |
Order Backlog |
(in thousands)
|
| | | | | | | | | | | | | |
|
| | | |
March 31,
| | |
December 31,
| | |
September 30,
| |
June 30,
| |
March 31,
|
| | | |
2014
| | |
2013
| | |
2013
| |
2013
| |
2013
|
| | | | | | | | | | | | | |
|
Fluid Handling
| | | |
$
|
350,720
| | |
$
|
333,860
| | |
$
|
355,192
| |
$
|
349,545
| |
$
|
365,231
|
Payment & Merchandising Technologies
| | | | |
58,787
|
*
| | |
51,888
|
*
| | |
23,901
| | |
25,641
| | |
21,399
|
Aerospace & Electronics
| | | | |
397,541
| | | |
361,323
| | | |
381,830
| | |
403,400
| | |
397,518
|
Engineered Materials
| | | |
|
16,624
| | |
|
14,661
| | |
|
12,572
| |
|
14,122
| |
|
16,138
|
Total Backlog | | | |
$
|
823,672
| | |
$
|
761,732
| | |
$
|
773,495
| |
$
|
792,708
| |
$
|
800,286
|
| | | | | | | | | | | | | |
|
* Includes $37.0 million and $31.9 million of order backlog as of
March 31, 2014 and December 31, 2013, respectively, pertaining to
the MEI/Conlux business acquired in December 2013.
|
|
CRANE CO. |
Non-GAAP Financial Measures |
(in thousands)
|
INCOME ITEMS |
|
|
| |
| |
| |
| | | | Three Months Ended | | Percent Change |
| | | | March 31, | | March 31, 2014 |
| | | | 2014 | | 2013 | | Three Months |
| | | | | | | |
|
| | | | | | | |
|
Net Sales
| | | |
$
|
716,830
| | |
$
|
627,571
| | |
14.2
|
%
|
| | | | | | | |
|
| | | | | | | |
|
Operating Profit
| | | | |
81,386
| | | |
86,900
| | |
-6.3
|
%
|
Percentage of Sales | | | | | 11.4 | % | | | 13.8 | % | | |
| | | | | | | |
|
Special Items impacting Operating Profit: | | | | | | | | |
| | | | | | | |
|
Acquisition transaction costs (a)
| | | | |
-
| | | |
2,888
| | | |
| | | | | | | |
|
Acquisition related inventory and backlog amortization (b)
| | | | |
4,790
| | | |
-
| | | |
| | | | | | | |
|
Acquisition related integration costs (c)
| | | | |
4,391
| | | |
-
| | | |
| | | | | | | |
|
Acquisition related restructuring costs (d)
| | | | |
4,323
| | | |
-
| | | |
| | | | | | | |
|
Repositioning charges (e)
| | | | |
6,050
| | | |
-
| | | |
| | | |
| |
| | |
Operating Profit before Special Items
| | | |
$
|
100,940
|
| |
$
|
89,788
|
| |
12.4
|
%
|
| | | | | | | |
|
Percentage of Sales | | | | | 14.1 | % | | | 14.3 | % | | |
| | | | | | | |
|
| | | | | | | |
|
Net Income Attributable to Common Shareholders
| | | |
$
|
48,684
| | |
$
|
57,791
| | | |
Per Share | | | | $ | 0.82 | | | $ | 0.99 | | |
-17.4
|
%
|
| | | | | | | |
|
Special Items impacting Net Income
Attributable to Common Shareholders: | | | | | | | | |
| | | | | | | |
|
Acquisition Transaction Costs - Net of Tax (a)
| | | | |
-
| | | |
2,888
| | | |
Per Share | | | | | | $ | 0.05 | | | |
| | | | | | | |
|
Acquisition related inventory and backlog amortization - Net of Tax
(b)
| | | | |
3,018
| | | |
-
| | | |
Per Share | | | | $ | 0.05 | | | | | |
| | | | | | | |
|
Acquisition related integration charges - Net of Tax (c)
| | | | |
3,209
| | | |
-
| | | |
Per Share | | | | $ | 0.05 | | | | | |
| | | | | | | |
|
Acquisition related restructuring charges - Net of Tax (d)
| | | | |
2,980
| | | |
-
| | | |
Per Share | | | | $ | 0.05 | | | | | |
| | | | | | | |
|
Repositioning Charges - Net of Tax (e)
| | | | |
4,330
| | | |
-
| | | |
Per Share | | | | $ | 0.07 | | | | | |
| | | | | | | |
|
| | | |
| |
| | |
Net Income Attributable To Common Shareholders Before Special Items
| | | |
$
|
62,221
| | |
$
|
60,679
| | |
2.5
|
%
|
Per Share | | | |
$
|
1.05
| | |
$
|
1.04
| | |
0.6
|
%
|
| | | | | | | |
|
(a) During the three months ended March 31, 2013, the Company
recorded transaction costs associated with the acquisition of
MEI/Conlux.
|
|
(b) During the three months ended March 31, 2014, the Company
recorded inventory step-up and backlog amortization relating to the
acquisition of MEI/Conlux.
|
|
(c) During the three months ended March 31, 2014, the Company
recorded integration costs associated with the acquisition of
MEI/Conlux.
|
|
(d) During the three months ended March 31, 2014, the Company
recorded restructuring costs associated with the acquisition of
MEI/Conlux.
|
|
(e) During the three months ended March 31, 2014, the Company
recorded repositioning charges associated with certain facility
consolidation activities in our Fluid Handling and Aerospace &
Electronics segments. These charges primarily included severance
and move costs related to the transfer of certain manufacturing
operations.
|
|
|
|
| |
| | | | 2014 Full Year Guidance |
| | | | |
| |
2014 Earnings Per Share Guidance | | | | Low | | High |
| | | | | |
|
Earnings Per Share - GAAP basis
| | | |
$
|
4.28
| |
$
|
4.48
|
| | | | | |
|
Acquisition integration costs, inventory step-up and backlog
amortization - Net of Tax(f)
| | | | |
0.22
| | |
0.22
|
| | | | | |
|
Anticipated facility repositioning actions, net of real estate
divestiture gains - Net of Tax (g)
| | | | |
0.05
| | |
0.05
|
| | | |
| |
|
Earnings Per Share - Non-GAAP basis
| | | |
$
|
4.55
| |
$
|
4.75
|
| | | | | |
|
(f) In connection with the MEI/Conlux acquisition, the Company
expects to incur transaction and integration related costs, and
inventory step up and backlog amortization charges in a range of $18
million to $21 million. The $0.22 represents the estimated Earnings
Per Share impact for the mid-point of the $18 million to $21 million
range.
|
| |
(g) In 2014, the Company expects to incur costs associated with
facility repositioning actions related to the consolidation of
certain smaller manufacturing sites and expects to record gains
from the sale of certain Company owned real estate.
|
|
|
|
| |
| |
|
|
| |
| |
CASH FLOW ITEMS | | | | | | | | | | | | |
| | | | | | | | | | | |
|
| | | | Three Months Ended | | | | | | |
| | | | March 31, | | | | 2014 Full Year Guidance |
| | | | 2014 | | 2013 | | | | Low | | High |
Cash Provided from Operating Activities
| | | | | | | | | | | | |
before Asbestos - Related Payments
| | | |
$
|
(5,985
|
)
| |
$
|
(9,910
|
)
| | | |
$
|
345,000
| | |
$
|
354,000
| |
Asbestos Related Payments, Net of Insurance Recoveries
| | | |
|
(12,925
|
)
| |
|
(10,493
|
)
| | | |
|
(70,000
|
)
| |
|
(64,000
|
)
|
Cash Provided from Operating Activities
| | | | |
(18,910
|
)
| | |
(20,403
|
)
| | | | |
275,000
| | | |
290,000
| |
Less: Capital Expenditures
| | | |
|
(9,393
|
)
| |
|
(5,473
|
)
| | | |
|
(50,000
|
)
| |
|
(40,000
|
)
|
Free Cash Flow
| | | |
$
|
(28,303
|
)
| |
$
|
(25,876
|
)
| | | |
$
|
225,000
|
| |
$
|
250,000
|
|
| | | | | | | | | | | |
|
Certain non-GAAP measures have been provided to facilitate
comparison with the prior year.
| |
| | | | | | | | |
|
The Company reports its financial results in accordance with U.S.
generally accepted accounting principles (GAAP). However, management
believes that non-GAAP financial measures which exclude certain
non-recurring items present additional useful comparisons between
current results and results in prior operating periods, providing
investors with a clearer view of the underlying trends of the
business. Management also uses these non-GAAP financial measures in
making financial, operating, planning and compensation decisions and
in evaluating the Company's performance.
|
| |
In addition, Free Cash Flow provides supplemental information to
assist management and investors in analyzing the Company’s ability
to generate liquidity from its operating activities. The measure of
Free Cash Flow does not take into consideration certain other
non-discretionary cash requirements such as, for example, mandatory
principal payments on the Company's long-term debt. Non-GAAP
financial measures, which may be inconsistent with similarly
captioned measures presented by other companies, should be viewed in
addition to, and not as a substitute for, the Company’s reported
results prepared in accordance with GAAP.
|
Contacts:
Crane Co.
Richard E. Koch, 203-363-7352
Director, Investor
Relations
and Corporate Communications
www.craneco.com
Source: Crane Co.
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