Press Release Details
COLFAX REPORTS FOURTH QUARTER AND FULL YEAR 2012 RESULTS
COLFAX REPORTS FOURTH QUARTER AND FULL YEAR 2012 RESULTS
Fourth Quarter of 2012 (all comparisons versus the fourth quarter of 2011)
- After
$15.6 million of pre-tax year-one acquisition-related amortization expense, net income of$14.7 million (13 cents per share); adjusted net income (as defined below) of$50.5 million (42 cents per share), which includes a non-cash9 cents per share gain related to a discrete deferred tax benefit recorded in the fourth quarter - Net sales of
$1.03 billion , organic sales decrease (as defined below) of 2.5% from fourth quarter 2011 proforma net sales (includes the comparable period sales for the operations acquired in the Charter acquisition) - Operating income of
$52.2 million ; adjusted operating income (as defined below) of$88.9 million - Operating cash flows of
$163.2 million , including improved inventory management which also resulted in a negative impact on adjusted operating income due to under-absorption from lower production levels - Fourth quarter gas- and fluid-handling orders of
$520.3 million , an increase of 4.3%; organic order increase (as defined below) of 1.9% - Gas- and fluid-handling backlog of
$1.4 billion at period end
Full Year 2012 (all comparisons versus full year 2011)
- After pre-tax expenses of
$78.2 million of year-one acquisition-related amortization expense and$43.6 million of Charter acquisition-related expense, a net loss of$83.4 million (92 cents per share); adjusted net income (as defined below) of$159.8 million ($1.34 per share), which includes a non-cash12 cents per share gain related to discrete deferred tax benefits recorded in the third and fourth quarters - Net sales of
$3.9 billion , an increase of 1.9% from the full year 2011 proforma net sales (includes the comparable period sales for the operations acquired in the Charter acquisition); organic sales increase (as defined below) of 5.3% - Operating income of
$140.0 million ; adjusted operating income (as defined below) of$334.9 million - Gas- and fluid-handling orders of
$2.0 billion , an increase of 3.7%; organic order increase (as defined below) of 2.8%
Adjusted net income, adjusted net income per share, adjusted operating income, organic sales growth (decline) and organic order growth are not financial measures calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP"). See below for a description of the measures' usefulness and a reconciliation of these measures to their most directly comparable GAAP financial measures.
Non-GAAP Financial Measures and Other Adjustments
Colfax has provided in this press release financial information that has not been prepared in accordance with GAAP. These non-GAAP financial measures are
adjusted net income, adjusted net income per share, adjusted operating income, organic sales growth (decline) and organic order growth. Adjusted net income, adjusted net income per share and adjusted operating income exclude asbestos coverage litigation expense, restructuring and other related charges, charges related to the Charter acquisition and fair value adjustments related to the ESAB and Howden inventory and backlog amortization expense to the extent they impact the periods presented. The effective tax rates used to calculate adjusted net income and adjusted net income per share are 15% and 25% for the fourth quarter and full year ended
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.
Conference Call and Webcast
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CAUTIONARY NOTE CONCERNING FORWARD LOOKING STATEMENTS:
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning Colfax's plans, objectives, expectations and intentions and other statements that are not historical or current
fact. Forward-looking statements are based on Colfax's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause Colfax's results to differ materially from current expectations include, but are not limited to factors detailed in Colfax's reports filed with the
The term "Colfax" in reference to the activities described in this press release may mean one
or more of Colfax's global operating subsidiaries and/or their internal business divisions and does not necessarily indicate activities engaged in by
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Condensed Consolidated Statements of Operations
Dollars in thousands,
except per share data
(Unaudited)
Three Months Ended | Year Ended December 31, | ||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||
Net sales | $ | 1,027,397 | $ | 177,791 | $ | 3,913,856 | $ | 693,392 | |||||||||||
Cost of sales | 719,827 | 116,247 | 2,761,731 | 453,293 | |||||||||||||||
Gross profit | 307,570 | 61,544 | 1,152,125 | 240,099 | |||||||||||||||
Selling, general and administrative expense | 234,261 | 39,385 | 895,452 | 162,761 | |||||||||||||||
Charter acquisition-related expense | - | 25,324 | 43,617 | 31,052 | |||||||||||||||
Restructuring and other related charges | 16,994 | 2,162 | 60,060 | 9,680 | |||||||||||||||
Asbestos coverage litigation expense | 4,147 | 2,246 | 12,987 | 10,700 | |||||||||||||||
Operating income (loss) | 52,168 | (7,573 | ) | 140,009 | 25,906 | ||||||||||||||
Interest expense | 23,290 | 1,412 | 91,570 | 5,919 | |||||||||||||||
Income (loss) before income taxes | 28,878 | (8,985 | ) | 48,439 | 19,987 | ||||||||||||||
Provision for income taxes (1)(2) | 3,812 | 7,095 | 90,703 | 15,432 | |||||||||||||||
Net income (loss) | 25,066 | (16,080 | ) | (42,264 | ) | 4,555 | |||||||||||||
Less: income attributable to noncontrolling interest, net of taxes | 5,330 | - | 22,138 | - | |||||||||||||||
Net income (loss) attributable to | 19,736 | (16,080 | ) | (64,402 | ) | 4,555 | |||||||||||||
Dividends on preferred stock | 5,072 | - | 18,951 | - | |||||||||||||||
Net income (loss) available to | $ | 14,664 | $ | (16,080 | ) | $ | (83,353 | ) | $ | 4,555 | |||||||||
Net income (loss) per share - basic | $ | 0.14 | $ | (0.37 | ) | $ | (0.92 | ) | $ | 0.10 | |||||||||
Net income (loss) per share - diluted | $ | 0.13 | $ | (0.37 | ) | $ | (0.92 | ) | $ | 0.10 |
__________
(1) Provision for income taxes the year ended
(2) Income tax provision for the fourth quarter and full year ended
Reconciliation of GAAP to Non-GAAP Financial Measures
Dollars in thousands, except per
share data
(Unaudited)
Three Months Ended | Year Ended December 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Adjusted Operating Income | ||||||||||||||||
Operating income (loss) | $ | 52,168 | $ | (7,573 | ) | $ | 140,009 | $ | 25,906 | |||||||
Restructuring and other related charges | 16,994 | 2,162 | 60,060 | 9,680 | ||||||||||||
Charter acquisition-related expense | - | 25,324 | 43,617 | 31,052 | ||||||||||||
Fair value adjustments - ESAB/Howden backlog and inventory amortization expense | 15,614 | - | 78,196 | - | ||||||||||||
Asbestos coverage litigation expense | 4,147 | 2,246 | 12,987 | 10,700 | ||||||||||||
Adjusted operating income | $ | 88,923 | $ | 22,159 | $ | 334,869 | $ | 77,338 | ||||||||
Adjusted operating income margin | 8.7 | % | 12.5 | % | 8.6 | % | 11.2 | % |
Adjusted Net Income and Adjusted Net Income Per Share | ||||||||||||||||||||||||
Net income (loss) attributable to | $ | 19,736 | $ | (16,080 | ) | $ | (64,402 | ) | $ | 4,555 | ||||||||||||||
Restructuring and other related charges | 16,994 | 2,162 | 60,060 | 9,680 | ||||||||||||||||||||
Charter acquisition-related expense | - | 25,324 | 43,617 | 31,052 | ||||||||||||||||||||
Fair value adjustments - ESAB/Howden backlog and inventory amortization expense | 15,614 | - | 78,196 | - | ||||||||||||||||||||
Asbestos coverage litigation expense | 4,147 | 2,246 | 12,987 | 10,700 | ||||||||||||||||||||
Tax adjustment(1) | (6,022 | ) | 767 | 29,297 | (6,351 | ) | ||||||||||||||||||
Adjusted net income | 50,469 | 14,419 | 159,755 | 49,636 | ||||||||||||||||||||
Adjusted net income margin | 4.9 | % | 8.1 | % | 4.1 | % | 7.2 | % | ||||||||||||||||
Dividends on preferred stock | 5,072 | - | 18,951 | - | ||||||||||||||||||||
Adjusted net income available to | 45,397 | 14,419 | 140,804 | 49,636 | ||||||||||||||||||||
Less: net income attributable to participating securities(2) | 5,831 | - | 18,087 | - | ||||||||||||||||||||
$ | 39,566 | $ | 14,419 | $ | 122,717 | $ | 49,636 | |||||||||||||||||
Weighted-average shares outstanding - diluted | 94,978,755 | 44,279,400 | 91,918,513 | 44,268,110 | ||||||||||||||||||||
Adjusted net income per share | $ | 0.42 | $ | 0.33 | $ | 1.34 | $ | 1.12 | ||||||||||||||||
Net income (loss) per share- diluted (in accordance with GAAP) | $ | 0.13 | $ | (0.37 | ) | $ | (0.92 | ) | $ | 0.10 | ||||||||||||||
__________
(1) The effective tax rates used to calculate adjusted net income and adjusted net income per share are 15% and 25% for the fourth quarter and full year ended
(2) Adjusted net income per share was calculated consistently with the two-class method in accordance with GAAP as the Series A preferred stock are considered participating securities. Losses are not allocated to the preferred stock.
Change in Sales, Orders and Backlog
Dollars in millions
(Unaudited)
Net Sales | Orders | |||||||||||||||||||
$ | % | $ | % | |||||||||||||||||
Proforma for the three months ended | $ | 1,049.8 | $ | 499.0 | ||||||||||||||||
Components of Change: | ||||||||||||||||||||
Existing Businesses | (26.5 | ) | (2.5 | )% | 9.6 | 1.9 | % | |||||||||||||
Acquisitions | 34.2 | 3.3 | % | 22.1 | 4.4 | % | ||||||||||||||
Foreign Currency Translation | (30.1 | ) | (2.9 | )% | (10.4 | ) | (2.0 | )% | ||||||||||||
Total | (22.4 | ) | (2.1 | )% | 21.3 | 4.3 | % | |||||||||||||
For the three months ended | $ | 1,027.4 | $ | 520.3 | ||||||||||||||||
Net Sales | Orders | Backlog at Period End | ||||||||||||||||||
$ | % | $ | % | $ | % | |||||||||||||||
Proforma as of and for the year ended | $ | 3,839.1 | $ | 1,924.6 | $ | 1,288.3 | ||||||||||||||
Components of Change: | ||||||||||||||||||||
Existing Businesses | 202.2 | 5.3 | % | 54.0 | 2.8 | % | 117.5 | 9.1 | % | |||||||||||
Acquisitions | 86.5 | 2.2 | % | 100.4 | 5.2 | % | 9.4 | 0.7 | % | |||||||||||
Foreign Currency Translation | (213.9 | ) | (5.6 | )% | (83.0 | ) | (4.3 | )% | (33.8 | ) | (2.6 | )% | ||||||||
Total | 74.8 | 1.9 | % | 71.4 | 3.7 | % | 93.1 | 7.2 | % | |||||||||||
As of and for the year ended | $ | 3,913.9 | $ | 1,996.0 | $ | 1,381.4 |
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(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
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