05/12/2021 | Press release | Archived content
($ millions except EPS) | Q1 2021 | Q1 2020 | Change | |||
Revenue | $ | 180.7 | $ | 192.2 | -6 | % |
Revenue - excluding divested businesses1
|
180.7 | 187.3 | -4 | % | ||
GAAP operating (loss) income | 0.4 | (73.4) | 101 | % | ||
Adjusted operating income2
|
12.4 | 11.1 | 12 | % | ||
GAAP operating margin | 0.2 | % | (38.2) | % | 3840 bps | |
Adjusted operating margin2
|
6.9 | % | 5.8 | % | 110 bps | |
Adjusted operating margin ex divestitures2
|
6.9 | % | 5.9 | % | 100 bps | |
GAAP loss per share (diluted) | $ | (0.35) | $ | (3.96) | 91 | % |
Adjusted earnings per share (diluted)2
|
$ | 0.24 | $ | 0.20 | 20 | % |
Operating cash flow | (17.7) | (23.9) | 26 | % | ||
Free cash flow3
|
(21.1) | (27.4) | 23 | % | ||
Orders | 226.7 | 208.5 | 9 | % | ||
Orders - excluding divested businesses1
|
226.7 | 204.0 | 11 | % |
($ in millions) | Q1 2021 | Q1 2020 | Change | |||
Aerospace & Defense | ||||||
Revenue | $ | 60.0 | $ | 65.5 | -8 | % |
Segment operating income | 10.7 | 12.5 | -14 | % | ||
Segment operating margin | 17.8 | % | 19.1 | % | -130 bps | |
Orders | 73.0 | 72.0 | 1 | % | ||
Industrial | ||||||
Revenue | $ | 120.7 | $ | 126.7 | -5 | % |
Revenue - excluding divested businesses1
|
120.7 | 121.8 | -1 | % | ||
Segment operating income | 9.7 | 5.2 | 88 | % | ||
Segment operating margin (adjusted) | 8.1 | % | 4.2 | % | 380 bps | |
Orders | 153.7 | 136.4 | 13 | % | ||
Orders - excluding divested businesses1
|
153.7 | 132.0 | 16 | % |
Three Months Ended | ||||
April 4, 2021 | March 29, 2020 | |||
Net revenues | $ | 180,655 | $ | 192,213 |
Cost of revenues | 124,574 | 132,170 | ||
Gross profit | 56,081 | 60,043 | ||
Selling, general and administrative expenses | 56,504 | 59,558 | ||
Goodwill impairment charge | - | 116,182 | ||
Special and restructuring charges (recoveries), net | (809) | (42,292) | ||
Operating income (loss) | 386 | (73,405) | ||
Other expense (income), net: | ||||
Interest expense, net | 8,369 | 9,011 | ||
Other expense (income), net | (1,503) | (2,680) | ||
Total other expense, net | 6,866 | 6,331 | ||
(Loss) income from continuing operations before income taxes | (6,480) | (79,736) | ||
Provision for (benefit from) income taxes | 400 | 8,374 | ||
(Loss) income from continuing operations, net of tax | (6,880) | (88,110) | ||
Income (loss) from discontinued operations, net of tax | (239) | 9,162 | ||
Net loss | $ | (7,119) | $ | (78,948) |
Basic income (loss) per common share: | ||||
Basic from continuing operations | $ | (0.34) | $ | (4.42) |
Basic from discontinued operations | $ | (0.01) | $ | 0.46 |
Net loss | $ | (0.35) | $ | (3.96) |
Diluted income (loss) per common share: | ||||
Diluted from continuing operations | $ | (0.34) | $ | (4.42) |
Diluted from discontinued operations | $ | (0.01) | $ | 0.46 |
Net loss | $ | (0.35) | $ | (3.96) |
Weighted average number of common shares outstanding: | ||||
Basic | 20,054 | 19,935 | ||
Diluted | 20,054 | 19,935 |
Three Months Ended | ||||
April 4, 2021 | March 29, 2020 | |||
OPERATING ACTIVITIES | ||||
Net loss | $ | (7,119) | $ | (78,948) |
Loss from discontinued operations, net of income taxes | (239) | 9,162 | ||
Loss from continuing operations | (6,880) | (88,110) | ||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||
Depreciation | 6,509 | 5,121 | ||
Amortization | 10,696 | 10,611 | ||
Provision for bad debt expense | (254) | 5,802 | ||
Write down of inventory | 129 | 343 | ||
Compensation expense for share-based plans | 1,402 | 608 | ||
Amortization of debt issuance costs | 995 | 4,513 | ||
Deferred tax provision | 823 | - | ||
Goodwill impairment charge | - | 116,182 | ||
(Gain) loss on sale of businesses | (1,947) | (54,356) | ||
Changes in operating assets and liabilities, net of effects of acquisition and disposition: | ||||
Trade accounts receivable | (3,793) | (1,550) | ||
Inventories | (8,055) | (13,365) | ||
Prepaid expenses and other assets | (15,332) | (5,507) | ||
Accounts payable, accrued expenses and other liabilities | (1,360) | 1,081 | ||
Net cash (used in) provided by continuing operating activities | (17,067) | (18,627) | ||
Net cash used in discontinued operating activities | (636) | (5,320) | ||
Net cash used in operating activities | (17,703) | (23,947) | ||
INVESTING ACTIVITIES | ||||
Additions to property, plant and equipment | (3,394) | (3,412) | ||
Proceeds from sale of property, plant and equipment | 2 | - | ||
Proceeds from the sale of business | 7,193 | 169,773 | ||
Proceeds from beneficial interest of factored receivables | 812 | 599 | ||
Net cash provided by continuing investment activities | 4,613 | 166,960 | ||
Net cash used in discontinued investing activities | - | 68 | ||
Net cash provided by investing activities | 4,613 | 167,028 | ||
FINANCING ACTIVITIES | ||||
Proceeds from long-term debt | 63,500 | 129,325 | ||
Payments of long-term debt | (46,500) | (180,891) | ||
Withholding tax payments on restricted and performance stock units converted | (3,274) | - | ||
Proceeds from the exercise of stock options | 151 | 118 | ||
Net cash provided by (used) in financing activities | 13,877 | (51,448) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,545) | (5,389) | ||
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (758) | 86,244 | ||
Cash, cash equivalents, and restricted cash at beginning of period | 77,696 | 85,727 | ||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ | 76,938 | $ | 171,971 |
April 4, 2021 | December 31, 2020 | |||
ASSETS | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents
|
$ | 75,680 | $ | 76,452 |
Trade accounts receivable, less allowance for doubtful accounts of $8,585 and $9,035 at April 4, 2021 and December 31, 2020, respectively | 105,607 | 102,730 | ||
Inventories
|
135,291 | 129,084 | ||
Prepaid expenses and other current assets
|
103,632 | 93,226 | ||
Assets held for sale
|
- | 5,073 | ||
Total Current Assets
|
420,210 | 406,565 | ||
PROPERTY, PLANT AND EQUIPMENT, NET | 163,431 | 168,763 | ||
OTHER ASSETS: | ||||
Goodwill
|
156,917 | 158,944 | ||
Intangibles, net
|
337,864 | 353,595 | ||
Deferred income taxes
|
781 | 779 | ||
Other assets
|
43,999 | 41,882 | ||
TOTAL ASSETS | $ | 1,123,202 | $ | 1,130,528 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Accounts payable
|
$ | 67,126 | $ | 61,236 |
Accrued expenses and other current liabilities
|
67,059 | 75,624 | ||
Accrued compensation and benefits
|
31,338 | 28,332 | ||
Total Current Liabilities
|
165,523 | 165,192 | ||
LONG-TERM DEBT | 525,573 | 507,888 | ||
DEFERRED INCOME TAXES | 27,071 | 28,980 | ||
PENSION LIABILITY, NET | 156,746 | 163,642 | ||
OTHER NON-CURRENT LIABILITIES | 52,183 | 58,785 | ||
COMMITMENTS AND CONTINGENCIES | ||||
SHAREHOLDERS' EQUITY: | ||||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding
|
- | - | ||
Common stock, $0.01 par value; 29,000,000 shares authorized; 21,543,496 and 21,373,813 issued at April 4, 2021 and December 31, 2020 respectively | 216 | 214 | ||
Additional paid-in capital
|
451,858 | 452,728 | ||
(Accumulated deficit) retained earnings
|
(93,580) | (86,461) | ||
Common treasury stock, at cost (1,372,488 shares at April 4, 2021 and December 31, 2020) | (74,472) | (74,472) | ||
Accumulated other comprehensive loss, net of tax
|
(87,916) | (85,968) | ||
Total Shareholders' Equity
|
196,106 | 206,041 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,123,202 | $ | 1,130,528 |
Three Months Ended | ||||
April 4, 2021 | March 29, 2020 | |||
ORDERS (1) | ||||
Aerospace & Defense | $ | 73.0 | $ | 72.0 |
Industrial | 153.7 | 136.4 | ||
Total Orders | $ | 226.7 | $ | 208.5 |
April 4, 2021 | March 29, 2020 | |||
BACKLOG (2) | ||||
Aerospace & Defense | $ | 194.7 | $ | 199.0 |
Industrial | 226.4 | 222.2 | ||
Total Backlog | $ | 421.1 | $ | 421.2 |
Note 1: Orders do not include the foreign exchange impact due to the re-measurement of customer backlog amounts denominated in foreign currencies. Orders for the three months ended March 29, 2020 include orders from businesses divested prior to March 29, 2020 of $4.4 million. | ||||
Note 2: Backlog includes unshipped customer orders for which revenue has not been recognized. |
2020 | 2021 | |||||||||||
As reported | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | ||||||
ORDERS | ||||||||||||
Aerospace & Defense | $ | 72,031 | $ | 76,616 | $ | 59,105 | $ | 46,796 | $ | 254,548 | $ | 72,999 |
Industrial | 136,443 | 116,023 | 107,453 | 121,690 | 481,609 | 153,695 | ||||||
Total | $ | 208,474 | $ | 192,639 | $ | 166,558 | $ | 168,486 | $ | 736,157 | $ | 226,693 |
NET REVENUES | ||||||||||||
Aerospace & Defense | $ | 65,493 | $ | 62,241 | $ | 62,249 | $ | 77,839 | $ | 267,822 | $ | 60,001 |
Industrial | 126,720 | 123,825 | 124,391 | 130,513 | 505,449 | 120,654 | ||||||
Total | $ | 192,213 | $ | 186,066 | $ | 186,640 | $ | 208,352 | $ | 773,271 | $ | 180,655 |
SEGMENT OPERATING INCOME | ||||||||||||
Aerospace & Defense | $ | 12,494 | $ | 13,142 | $ | 14,782 | $ | 18,675 | $ | 59,093 | $ | 10,706 |
Industrial | 5,169 | 12,406 | 9,807 | 12,441 | 39,823 | 9,735 | ||||||
Corporate expenses | (6,588) | (9,664) | (7,244) | (7,789) | (31,285) | (8,002) | ||||||
Total | $ | 11,075 | $ | 15,884 | $ | 17,345 | $ | 23,327 | $ | 67,631 | $ | 12,439 |
SEGMENT OPERATING MARGIN % | ||||||||||||
Aerospace & Defense | 19.1 | % | 21.1 | % | 23.7 | % | 24.0 | % | 22.1 | % | 17.8 | % |
Industrial | 4.1 | % | 10.0 | % | 7.9 | % | 9.5 | % | 7.9 | % | 8.1 | % |
Total | 5.8 | % | 8.5 | % | 9.3 | % | 11.2 | % | 8.7 | % | 6.9 | % |
2020 | 2021 | |||||||||||
Results of divested businesses (1) | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | ||||||
ORDERS - Industrial | $ | 4,449 | $ | - | $ | - | $ | - | $ | 4,449 | $ | - |
NET REVENUES - Industrial | $ | 4,900 | $ | - | $ | - | $ | - | $ | 4,900 | $ | - |
SEGMENT OP. INC. -Industrial | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
2020 | 2021 | |||||
Results excluding divested businesses | 1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR |
ORDERS | ||||||
Aerospace & Defense | $72,031 | $76,616 | $59,105 | $46,796 | $254,548 | $72,999 |
Industrial | 131,994 | 116,023 | 107,453 | 121,690 | 477,160 | 153,695 |
Total | $204,025 | $192,639 | $166,558 | $168,486 | $731,708 | $226,693 |
NET REVENUES | ||||||
Aerospace & Defense | $65,493 | $62,241 | $62,249 | $77,839 | $267,822 | $60,001 |
Industrial | 121,820 | 123,825 | 124,391 | 130,513 | 500,549 | 120,654 |
Total | $187,313 | $186,066 | $186,640 | $208,352 | $768,371 | $180,655 |
SEGMENT OPERATING INCOME | ||||||
Aerospace & Defense | $12,494 | $13,142 | $14,782 | $18,675 | $59,093 | $10,706 |
Industrial | 5,169 | 12,406 | 9,807 | 12,441 | 39,823 | 9,735 |
Corporate expenses | (6,588) | (9,664) | (7,244) | (7,789) | (31,285) | (8,002) |
Total | $11,075 | $15,884 | $17,345 | $23,327 | $67,631 | $12,439 |
SEGMENT OPERATING MARGIN % | ||||||
Aerospace & Defense | 19.1% | 21.1% | 23.7% | 24.0% | 22.1% | 17.8% |
Industrial | 4.2% | 10.0% | 7.9% | 9.5% | 8.0% | 8.1% |
Total | 5.9% | 8.5% | 9.3% | 11.2% | 8.8% | 6.9% |
(1) Divested businesses are related to the Industrial Segment and include Instrumentation & Sampling. Distributed Valves are discontinued operations and not reflected in the As Reported figures in accordance with US GAAP. |
2020 | 2021 | |||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |
Net Cash (Used In) Provided By Operating Activities | $(23,947) | $(24,883) | $2,465 | $23,641 | $(22,724) | $(17,703) |
LESS | ||||||
Capital expenditures, net of sale proceeds (a)
|
3,412 | 3,527 | 2,330 | 3,275 | 12,544 | 3,392 |
FREE CASH FLOW | $(27,359) | $(28,410) | $135 | $20,366 | $(35,268) | $(21,095) |
Gross Debt | $602,288 | $592,038 | $540,463 | $519,938 | $519,938 | $536,938 |
Less: Cash & Cash equivalents | 170,861 | 125,421 | 72,772 | 76,452 | 76,452 | 75,680 |
GROSS DEBT, NET OF CASH | $431,427 | $466,617 | $467,691 | $443,486 | $443,486 | $461,258 |
TOTAL SHAREHOLDERS' EQUITY | $290,845 | $273,351 | $220,814 | $206,041 | $206,041 | $196,106 |
GROSS DEBT AS % OF EQUITY | 207% | 217% | 245% | 252% | 252% | 274% |
GROSS DEBT, NET OF CASH AS % OF EQUITY | 148% | 171% | 212% | 215% | 215% | 235% |
(a) includes capital expenditures, net of sales proceeds of discontinued operations |
2020 | 2021 | |||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||
NET (LOSS) INCOME | $ | (78,948) | $ | (34,092) | $ | (58,524) | $ | (13,934) | $ | (185,498) | $ | (7,119) |
LESS: | ||||||||||||
Restructuring related inventory charges | (602) | - | 351 | - | (251) | - | ||||||
Restructuring charges, net | 2,883 | 588 | 502 | 972 | 4,945 | 2,060 | ||||||
Acquisition amortization | 10,218 | 10,681 | 10,625 | 10,939 | 42,463 | 10,487 | ||||||
Acquisition depreciation | 974 | 980 | 1,011 | 1,021 | 3,986 | 2,375 | ||||||
Special (recoveries) charges, net | (45,175) | 5,019 | 436 | 473 | (39,247) | (2,869) | ||||||
Goodwill Impairment charge | 116,182 | - | - | - | 116,182 | - | ||||||
Income tax impact | 7,704 | (22,549) | 53,240 | 13,125 | 51,521 | (335) | ||||||
Net loss (income) from discontinued operations | (9,162) | 43,848 | (341) | 795 | 35,140 | 239 | ||||||
ADJUSTED NET INCOME | $ | 4,074 | $ | 4,475 | $ | 7,300 | $ | 13,390 | $ | 29,240 | $ | 4,838 |
(LOSS) EARNINGS PER COMMON SHARE (Diluted) | $ | (3.96) | $ | (1.68) | $ | (2.93) | $ | (0.70) | $ | (9.28) | $ | (0.35) |
LESS: | ||||||||||||
Restructuring related inventory charges | (0.03) | - | 0.02 | - | (0.01) | - | ||||||
Restructuring charges, net | 0.14 | 0.03 | 0.02 | 0.05 | 0.25 | 0.10 | ||||||
Acquisition amortization | 0.51 | 0.53 | 0.53 | 0.55 | 2.13 | 0.52 | ||||||
Acquisition depreciation | 0.05 | 0.05 | 0.05 | 0.05 | 0.20 | 0.12 | ||||||
Special (recoveries) charges, net | (2.27) | 0.25 | 0.02 | 0.02 | (1.96) | (0.14) | ||||||
Impairment charge | 5.83 | - | - | - | 5.81 | - | ||||||
Income tax impact | 0.39 | (1.11) | 2.66 | 0.66 | 2.58 | (0.02) | ||||||
Earnings (Loss) per share from discontinued operations | (0.46) | 2.16 | (0.02) | 0.04 | 1.76 | 0.01 | ||||||
ADJUSTED EARNINGS PER SHARE (Diluted) | $ | 0.20 | $ | 0.22 | $ | 0.36 | $ | 0.66 | $ | 1.43 | $ | 0.24 |
2020 | 2021 | |||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||
NET (LOSS) INCOME | $ | (78,948) | $ | (34,092) | $ | (58,524) | $ | (13,934) | $ | (185,498) | $ | (7,119) |
LESS: | ||||||||||||
Interest expense, net | 9,011 | 8,486 | 8,202 | 8,520 | 34,219 | 8,369 | ||||||
Depreciation | 5,121 | 4,958 | 4,802 | 5,504 | 20,385 | 6,509 | ||||||
Amortization | 10,516 | 10,976 | 10,925 | 11,245 | 43,662 | 10,696 | ||||||
Provision for income taxes | 8,374 | (21,769) | 54,318 | 15,299 | 56,222 | 400 | ||||||
Loss (income) from discontinued operations | (9,162) | 43,847 | (341) | 795 | 35,140 | 239 | ||||||
EBITDA | $ | (55,088) | $ | 12,406 | $ | 19,383 | $ | 27,429 | $ | 4,130 | $ | 19,094 |
LESS: | ||||||||||||
Restructuring related inventory charges (recoveries) | (602) | - | 351 | - | (251) | - | ||||||
Restructuring charges, net | 2,883 | 588 | 502 | 972 | 4,945 | 2,060 | ||||||
Special (recoveries) charges, net | (45,175) | 5,019 | 436 | 473 | (39,247) | (2,869) | ||||||
Goodwill impairment charge | 116,182 | - | - | - | 116,182 | - | ||||||
ADJUSTED EBITDA | $ | 18,200 | $ | 18,013 | $ | 20,671 | $ | 28,873 | $ | 85,758 | $ | 18,285 |
2020 | 2021 | |||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | TOTAL | 1ST QTR | |||||||
GAAP OPERATING INCOME (LOSS) | $ | (73,405) | $ | (1,384) | $ | 4,420 | $ | 9,923 | $ | (60,446) | $ | 386 |
LESS: | ||||||||||||
Restructuring related inventory charges (recoveries) | (602) | - | 351 | - | (251) | - | ||||||
Amortization of inventory step-up | - | - | - | - | - | - | ||||||
Restructuring charges, net | 2,883 | 588 | 502 | 972 | 4,945 | 2,060 | ||||||
Acquisition amortization | 10,218 | 10,681 | 10,625 | 10,939 | 42,463 | 10,487 | ||||||
Acquisition depreciation | 974 | 980 | 1,011 | 1,021 | 3,986 | 2,375 | ||||||
Special (recoveries) charges, net | (45,175) | 5,019 | 436 | 473 | (39,247) | (2,869) | ||||||
Goodwill impairment charge | 116,182 | - | - | - | 116,182 | - | ||||||
ADJUSTED OPERATING INCOME | $ | 11,075 | $ | 15,884 | $ | 17,345 | $ | 23,327 | $ | 67,631 | $ | 12,439 |
GAAP OPERATING MARGIN | (38.2) | % | (0.7) | % | 2.4 | % | 4.8 | % | (7.8) | % | 0.2 | % |
LESS: | ||||||||||||
Restructuring related inventory charges (recoveries) | (0.3) | % | - | % | 0.2 | % | - | % | - | % | - | % |
Amortization of inventory step-up | - | % | - | % | - | % | - | % | - | % | - | % |
Restructuring charges, net | 1.5 | % | 0.3 | % | 0.3 | % | 0.5 | % | 0.6 | % | 1.1 | % |
Acquisition amortization | 5.3 | % | 5.7 | % | 5.7 | % | 5.3 | % | 5.5 | % | 5.8 | % |
Acquisition depreciation | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | 1.3 | % |
Special (recoveries) charges, net | (23.5) | % | 2.7 | % | 0.2 | % | 0.2 | % | (5.1) | % | (1.6) | % |
Goodwill impairment charge | 60.4 | % | - | % | - | % | - | % | 15.0 | % | - | % |
ADJUSTED OPERATING MARGIN | 5.8 | % | 8.5 | % | 9.3 | % | 11.2 | % | 8.7 | % | 6.9 | % |