CIRCOR International, Inc. (NYSE: CIR), a provider of valves and other highly engineered products and subsystems that control the flow of fluids safely and efficiently in the aerospace, energy and industrial markets, today announced financial results for the first quarter ended April 4, 2010.

Management Comments on First-Quarter Results

“We recorded first-quarter earnings that exceeded our guidance range due to lower-than-expected asbestos charges and a favorable asbestos related insurance adjustment,” said Chairman and Chief Executive Officer Bill Higgins. “Excluding these benefits to earnings, we still would have reported EPS in line with our guidance on lower-than-expected sales. Revenue was below our guidance range as a result of delayed shipments for large international energy projects.”

“The highlight of the quarter was the year-over-year improvements we recorded in bookings across each of our reporting segments,” Higgins said. “Our Energy segment delivered 32% year-over-year growth in bookings, driven by increased demand in our short-cycle business. Flow Technologies reported a 26% increase in bookings as a result of strengthening across many end markets. Our Aerospace segment delivered a 47% improvement in bookings compared with the year-ago quarter due to strong landing gear and other military orders.”

Consolidated Results

Revenues for the first quarter of 2010 were $146.3 million, a 17% decrease from $175.6 million generated in the first quarter of 2009. Net income for the first quarter of 2010 decreased 45% to $5.7 million, or $0.33 per diluted share, compared with $10.5 million, or $0.61 per diluted share, for the first quarter of 2009. First-quarter 2010 net income reflects $0.6 million of pre-tax asbestos recoveries related to the Company’s Leslie Controls subsidiary compared with $8.3 million in asbestos charges in the first quarter of 2009.

There were no special charges (recoveries) in the first quarter of 2010. First-quarter 2009 net income included a pre-tax gain of $1.1 million related to proceeds from the sale of land use rights, recorded as a special recovery.

Consolidated Orders and Free Cash Flow

The Company received orders totaling $161.1 million during the first quarter of 2010, an increase of 32% compared with the first quarter of 2009 and a 6% sequential decrease compared with the fourth quarter of 2009. The year-over-year increase in orders reflects stabilizing market conditions, while the sequential decrease is the result of lower-than-expected large international energy and pipeline solutions projects. In addition, the Company booked unusually high maritime orders in the fourth quarter of 2009. Backlog as of April 4, 2010 was $330.4 million, up 11% from backlog of $298.1 million at March 29, 2009 and up sequentially by 4% from December 31, 2009.

During the first quarter of 2010, the Company used $7.0 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) compared to using $7.9 million in the first quarter of 2009.

Energy

CIRCOR’s Energy segment revenues decreased by 35% to $57.7 million for the quarter ended April 4, 2010 compared with $89.3 million in the quarter ended March 29, 2009. The year-over-year decrease included organic declines of 47% across all areas, slightly offset by growth from acquisitions of 9% and favorable foreign currency adjustments of 3%.

Incoming orders for the first quarter of 2010 were $60.3 million, an increase of 32% from $45.8 million in the first quarter of 2009, and a decrease of 23% sequentially. The year-over-year increase was due to increased strength in the short-cycle business while the sequential decrease related to lower bookings of large international projects and pipeline solutions projects than the final quarter of 2009. Ending backlog totaled $135.4 million, a 6% increase compared with $127.3 million at the end of the first quarter of 2009, and a 2% increase sequentially.

The Energy segment adjusted operating margin, which excludes the impact of special charges, was 3.5% during the first quarter of 2010 compared with 18.1% for the first quarter of 2009 and 3.0% for the fourth quarter of 2009. First-quarter 2010 margins were negatively impacted year over year by organic revenue declines across the segment, the associated lost operating leverage, unfavorable pricing in large international projects, and the dilutive impact of the Pipeline Engineering acquisition. These factors were partially offset by lower commissions and increased productivity.

Aerospace

CIRCOR’s Aerospace segment revenues decreased by 4% to $27.3 million for the first quarter of 2010 from $28.3 million in the first quarter of 2009. Growth through acquisitions of 8% and favorable foreign currency adjustments of 1% were offset by organic declines of 13%. Incoming orders for the first quarter of 2010 were $33.0 million, an increase of 47% from $22.4 million in the first quarter of 2009, and a 39% increase from $23.7 million in the final quarter of 2009. The year-over-year and sequential increases were primarily due to military orders as well as the year-over-year increase from acquisitions. Ending backlog totaled $121.0 million, a 12% increase compared with $108.2 million at the end of the first quarter of 2009, and a 5% increase sequentially.

The Aerospace segment’s adjusted operating margin, which excludes the impact of special charges, was 13.2% for the first quarter of 2010 compared with 15.4% for the first quarter of 2009 and 14.7% for the fourth quarter of 2009. First-quarter 2010 margins were affected by reduced volume and associated leverage, as well as the dilutive impact of acquisitions and investments in new programs partially offset by productivity and favorable mix.

Flow Technologies

CIRCOR’s Flow Technologies segment revenues increased 6% to $61.3 million from $58.0 million in the first quarter of 2009. First-quarter 2010 revenues reflected organic growth of 3% and favorable foreign currency adjustments of 3%. Incoming orders for this segment were $67.8 million for the first quarter of 2010, an increase of 26% from $53.6 million in the first quarter of 2009 and a decrease of 2% sequentially. The year-over-year increase was due to strengthening demand across many end markets except chemical, refining and commercial construction. Ending backlog totaled $74.0 million, an 18% increase compared with $62.6 million at the end of the first quarter of 2009, and a 9% increase sequentially.

This segment’s adjusted operating margin, which excludes the impact of special and asbestos charges, for the first quarter of 2010 was 10.2% compared with 11.6% in the first quarter of 2009, and 11.7% in the fourth quarter of 2009. First-quarter 2010 margins were affected by unfavorable product mix, partially offset by productivity enhancements.

Business and Financial Outlook

“Our positive bookings trend during the past two quarters continues to provide us with reason for cautious optimism about the remainder of the year,” continued Higgins. “In Energy, we believe that the short-cycle business has stabilized and we are hopeful that an increasing number of large international projects will be released. In Flow Technologies, we believe many of our end markets bottomed in the second quarter of 2009 and will continue to improve. In Aerospace, our outlook is improving with freight and passenger traffic increasing, and OEMs announcing higher aircraft production later in the year. The recent financial headwinds in Europe and the Gulf coast oil crisis have created some uncertainties we will watch closely. However, we believe we have seen the bottom in many of our markets and bookings are beginning to improve in these areas.”

“As our sales volumes rebound, CIRCOR’s lean cost structure will enable us to drive profitability improvement across the organization. Our balance sheet remains strong and our ability to generate cash flow allows us to complement organic growth with strategic acquisitions,” concluded Higgins.

CIRCOR currently expects revenues for the second quarter of 2010 in the range of $170 million to $180 million and earnings, excluding special charges, to be in the range of $0.28 to $0.38 per diluted share.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, May 10, 2010, at 5:00 p.m. ET. Those who wish to listen to the conference call and view the accompanying presentation slides should visit “Webcasts & Presentations” in the “Investors” portion of the CIRCOR website. The live call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. If you are unable to listen to the live call, the webcast will be archived for one year on the Company’s website.

Use of Non-GAAP Financial Measures

Adjusted net income, adjusted earnings per diluted share, adjusted operating margin, and free cash flow, are non-GAAP financial measures and are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States. CIRCOR believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which are, in some cases, beyond the control of CIRCOR. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, those relating to CIRCOR’s future performance, including second-quarter revenue and earnings guidance. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K, WHICH CAN BE ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About CIRCOR International, Inc. CIRCOR International, Inc. designs, manufactures and markets valves and other highly engineered products and subsystems that control the flow of fluids safely and efficiently in the aerospace, energy and industrial markets. With more than 9,000 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands. CIRCOR’s culture, built on the CIRCOR Business System, is defined by the Company’s commitment to attracting, developing and retaining the best talent and pursuing continuous improvement in all aspects of its business and operations. The Company’s strategy includes growing organically by investing in new, differentiated products; adding value to component products; and increasing the development of mission-critical subsystems and solutions. CIRCOR also plans to leverage its strong balance sheet to acquire strategically complementary businesses. For more information, visit the Company’s investor relations web site at http://investors.circor.com.
       
 

 

CIRCOR INTERNATIONAL, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands, except per share data)

 

UNAUDITED
 
 

 

Three Months Ended

 

April 4, 2010

 

March 29, 2009
 
 
Net revenues $ 146,269 $ 175,647
Cost of revenues   103,550     119,628  
GROSS PROFIT 42,719 56,019
Selling, general and administrative expenses 35,418 34,099
Asbestos charges (recoveries) (648 ) 8,263
Special charges (recoveries)   -     (1,135 )
OPERATING INCOME   7,949     14,792  
Other (income) expense:
Interest income (43 ) (146 )
Interest expense 597 178
Other (income) expense, net   (51 )   (183 )
Total other expense (income)   503     (151 )
INCOME BEFORE INCOME TAXES 7,446 14,943
Provision for income taxes   1,713     4,483  
NET INCOME $ 5,733   $ 10,460  
 
Earnings per common share:
Basic $ 0.34 $ 0.62
Diluted $ 0.33 $ 0.61
 
Weighted average common shares outstanding:
Basic 17,051 16,916
Diluted 17,193 17,014
       

 

CIRCOR INTERNATIONAL, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(in thousands)

 

UNAUDITED
 
 

 

Three Months Ended

 

April 4, 2010

 

March 29, 2009
 
 
OPERATING ACTIVITIES
Net income $ 5,733 $ 10,460
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 3,228 2,839
Amortization 979 622
Compensation expense of stock-based plans 843 808
Tax effect of share based compensation 112 290
Gain on disposal of property, plant and equipment - (21 )
 
Changes in operating assets and liabilities, net of effects from business acquisitions:
 
Trade accounts receivable (10,734 ) 7,151
Inventories (4,332 ) 8,998
Prepaid expenses and other assets (8,212 ) 3,538
Accounts payable, accrued expenses and other liabilities   9,609     (39,380 )
Net cash used in operating activities   (2,774 )   (4,695 )
 
INVESTING ACTIVITIES
Additions to property, plant and equipment (3,606 ) (2,576 )
Proceeds from disposal of property, plant and equipment 13 31
Purchase of investments - (85,739 )
Proceeds from sale of investments - 82,569
Business acquisitions, net of cash acquired   (340 )   (6,666 )
Net cash used in investing activities   (3,933 )   (12,381 )
 
FINANCING ACTIVITIES
Proceeds from long-term debt 16,110 35,352
Payments of long-term debt (15,972 ) (28,324 )
Dividends paid (639 ) (657 )
Proceeds from the exercise of stock options 256 -
Tax effect of share based compensation   (112 )   (290 )
Net cash (used in) provided by financing activities   (357 )   6,081  
Effect of exchange rate changes on cash and cash equivalents   (1,474 )   (365 )
 
DECREASE IN CASH AND CASH EQUIVALENTS (8,538 ) (11,360 )
Cash and cash equivalents at beginning of year   46,350     47,473  
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 37,812   $ 36,113  
         

 

CIRCOR INTERNATIONAL, INC.

 

CONSOLIDATED BALANCE SHEETS

 

(in thousands, except share data)

 

UNAUDITED
 
 
   

 

April 4, 2010

 

December 31, 2009
 
ASSETS
Current Assets:
Cash & cash equivalents $ 37,812 $ 46,350
Short-term investments 22,412 21,498
Trade accounts receivable, less allowancefor doubtful accounts of $1,921 and $1,992, respectively
122,191 115,260
Inventories 146,907 145,031
Income taxes refundable 2,907 726
Prepaid expenses and other current assets 8,600 4,195
Deferred income tax asset 13,866 15,847
Insurance receivables 7,997 4,614
Assets held for sale   542   1,167
Total Current Assets   363,234   354,688
 
Property, Plant and Equipment, net 92,847 95,167
 
Other Assets:
Goodwill 47,515 47,893
Intangibles, net 52,554 55,238
Deferred income tax asset 5,956 5,676
Other assets

 
3,284   3,391
Total Assets $ 565,390 $ 562,053
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 62,342 $ 57,239
Accrued expenses and other current liabilities 48,090 46,736
Accrued compensation and benefits 17,695 18,617
Asbestos liability 11,410 12,476
Notes payable and current portion of long-term debt   3,733   5,914
Total Current Liabilities   143,270   140,982
 
Long-Term Debt, net of current portion 3,778 1,565
Long-Term Asbestos Liability 48,421 47,785
Other Non-Current Liabilities 20,677 21,313
Shareholders' Equity:
Preferred stock, $.01 par value; 1,000,000 sharesauthorized; no shares issued and outstanding
- -

Common stock, $.01 par value; 29,000,000 sharesauthorized; and 17,050,121 and 16,991,365 issued andoutstanding, respectively
 
171 170
Additional paid-in capital 251,005 249,960
Retained earnings 91,503 86,408
Accumulated other comprehensive income   6,565   13,870
Total Shareholders' Equity   349,244   350,408
Total Liabilities and Shareholders' Equity $ 565,390 $ 562,053
           
 
CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in thousands)
UNAUDITED
 
 

 

Three Months Ended

 

April 4, 2010

 

March 29, 2009
 
ORDERS
Energy $ 60,338 $ 45,820
 
Aerospace 33,029 22,418
 
Flow Technologies   67,774   53,637
 
Total orders $ 161,141 $ 121,875
 
 
   

 

April 4, 2010

 

March 29, 2009
 
BACKLOG
Energy $ 135,401 $ 127,283
 
Aerospace 120,988 108,233
 
Flow Technologies   73,993   62,627
 
Total backlog $ 330,382 $ 298,143
 
 
Note: Backlog includes all unshipped customer orders.
                           
 
CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share)
UNAUDITED
 
 

 

2009

 

2010

 

1ST QTR

 
 

2ND QTR
    3RD QTR     4TH QTR     YTD

 

1ST QTR
 
NET REVENUES
 
Energy $ 89,307 $ 76,814 $ 61,185 $ 66,113 $ 293,419 $ 57,722
Aerospace 28,344 30,243 26,234 28,506 113,327 27,274
Flow Technologies   57,996     57,478     56,908     63,494     235,876     61,273  
Total   175,647     164,535     144,327     158,113     642,622     146,269  
 
ADJUSTED OPERATING MARGIN
 
Energy (excl. special charges) 18.1 % 12.3 % 10.9 % 3.0 % 11.7 % 3.5 %
Aerospace (excl. special charges) 15.4 % 16.2 % 13.2 % 14.7 % 14.9 % 13.2 %
Flow Technologies (excl. special & asbestos charges) 11.6 % 9.5 % 10.9 % 11.7 % 11.0 % 10.2 %
Segment operating income (excl. special & asbestos charges) 15.5 % 12.1 % 11.3 % 8.6 % 12.0 % 8.1 %
Corporate expenses (excl. special & asbestos charges) -3.1 % -3.4 % -3.0 % -3.3 % -3.2 % -3.1 %
Adjusted Operating Income 12.5 % 8.7 % 8.4 % 5.3 % 8.8 % 5.0 %
Asbestos charges (recoveries) (attributable to Flow Technologies) 4.7 % 2.1 % 1.4 % 25.5 % 8.4 % -0.4 %
Special charges (recoveries) -0.6 % 0.0 % -0.4 % 0.3 % -0.2 % 0.0 %
Total operating margin 8.4 % 6.6 % 7.4 % -20.6 % 0.6 % 5.4 %
 
ADJUSTED OPERATING INCOME
 
Energy (excl. special charges) 16,169 9,461 6,696 1,966 34,292 2,025
Aerospace (excl. special charges) 4,372 4,905 3,461 4,195 16,933 3,607
Flow Technologies (excl. special & asbestos charges)   6,744     5,484     6,197     7,444     25,869     6,276  
Segment operating income (excl. special & asbestos charges) 27,285

 
19,850

 
16,354 13,605 77,094 11,908
Corporate expenses (excl. special & asbestos charges)   (5,365 )   (5,589 )   (4,276 )   (5,267 )   (20,497 )   (4,607 )
Adjusted Operating Income   21,920     14,261     12,078     8,338     56,597     7,301  
Asbestos charges (recoveries) (attributable to Flow Technologies) 8,263 3,442 1,977 40,397 54,079 (648 )
Special charges (recoveries) (1,135 ) - (543 ) 485 (1,193 ) -
           
Total operating income 14,792 10,819 10,644 (32,544 ) 3,711 7,949
 
INTEREST (EXPENSE) INCOME, NET (32 ) (41 ) (394 ) (602 ) (1,069 ) (554 )
OTHER (EXPENSE) INCOME, NET   183     267     959     (967 )   442     51  
 
PRETAX INCOME (LOSS) 14,943 11,045 11,209 (34,113 ) 3,084 7,446
(PROVISION) BENEFIT FOR INCOME TAXES   (4,483 )   (3,313 )   (2,804 )   13,386     2,786     (1,713 )
EFFECTIVE TAX RATE 30.0 % 30.0 % 25.0 % 39.2 % -90.3 % 23.0 %
NET (LOSS) INCOME $ 10,460   $ 7,732   $ 8,405   $ (20,727 ) $ 5,870   $ 5,733  
 
Weighted Average Common Shares Outstanding (Diluted) 17,014 17,066 17,116 17,033 17,111 17,193
 
EARNINGS PER COMMON SHARE (Diluted) $ 0.61   $ 0.45   $ 0.49   $ (1.22 ) $ 0.34   $ 0.33  
 
EBIT $ 14,975 $ 11,086 $ 11,603 $ (33,511 ) $ 4,153 $ 8,000
Depreciation 2,839 3,245 3,536 3,687 13,307 3,228
Amortization of intangibles   622     627     707     1,078     3,034     862  
EBITDA $ 18,436   $ 14,958   $ 15,846   $ (28,746 ) $ 20,494   $ 12,090  
 
EBITDA AS A PERCENT OF SALES   10.5 %   9.1 %   11.0 %   -18.2 %   3.2 %   8.3 %
 
CAPITAL EXPENDITURES $ 2,576   $ 1,925   $ 1,605   $ 4,926   $ 11,032   $ 3,606  
                           
 
CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED
GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands)
UNAUDITED
 
 

 

2009

 
 

2010
 
  1ST QTR     2ND QTR     3RD QTR     4TH QTR     YTD   1ST QTR
                                       
FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIESLESS CAPITAL EXPENDITURES LESS DIVIDENDS PAID]
    $ (7,928 )     $ 17,882       $ 11,241       $ 11,757       $ 32,952     $ (7,019 )
ADD: Capital expenditures 2,576 1,925 1,605 4,926 11,032 3,606
Dividends paid   657     637     636     638     2,568       639  
 
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (4,695 ) $ 20,444   $ 13,482   $ 17,321   $ 46,552     $ (2,774 )
                                         
NET (CASH) DEBT [TOTAL DEBT LESS CASH & CASH EQUIVALENTS
LESS INVESTMENTS]     $ (49,519 )     $ (69,331 )     $ (77,081 )     $ (60,369 )     $ (60,369 )     $ (52,713 )
ADD:
Cash & cash equivalents 36,113 33,038 83,708 46,350 46,350 37,812
Investments   36,991     48,344     3,023     21,498     21,498       22,412  
 
TOTAL DEBT $ 23,585   $ 12,051   $ 9,650   $ 7,479   $ 7,479     $ 7,511  
                                         
DEBT AS % OF EQUITY       7 %       3 %       3 %       2 %       2 %       2 %
 
TOTAL DEBT 23,585 12,051 9,650 7,479 7,479 7,511
 
TOTAL SHAREHOLDERS' EQUITY 341,860 357,596 371,728 350,408 350,408 349,244
                                         
EBIT [NET INCOME LESS INCOME TAXES LESS INTEREST EXPENSE, NET]     $ 14,975       $ 11,086       $ 11,603       $ (33,511 )     $ 4,153       $ 8,000  
LESS:
Interest expense, net (32 ) (41 ) (394 ) (602 ) (1,069 ) (554 )
Provision for income taxes   (4,483 )   (3,313 )   (2,804 )   13,386     2,786     (1,713 )
 
NET INCOME $ 10,460   $ 7,732   $ 8,405   $ (20,727 ) $ 5,870   $ 5,733  
                                         
EBITDA [NET INCOME LESS INTEREST EXPENSE, NETLESS DEPRECIATION LESS AMORTIZATION LESS INCOME TAXES]
    $ 18,436       $ 14,958       $ 15,846       $ (28,746 )     $ 20,494       $ 12,090  
LESS:
Interest expense, net (32 ) (41 ) (394 ) (602 ) (1,069 ) (554 )
Depreciation (2,839 ) (3,245 ) (3,536 ) (3,687 ) (13,307 ) (3,228 )
Amortization (622 ) (627 ) (707 ) (1,078 ) (3,034 ) (862 )
Provision for income taxes   (4,483 )   (3,313 )   (2,804 )   13,386     2,786     (1,713 )
 
NET INCOME $ 10,460   $ 7,732   $ 8,405   $ (20,727 ) $ 5,870   $ 5,733  
                                         
ADJUSTED INCOME [NET INCOME EXCLUDING SPECIAL CHARGES, NET OF TAX]
    $ 9,666       $ 7,732       $ 8,000       $ (20,432 )     $ 4,965       $ 5,733  
LESS:
Special charges (recoveries), net of tax (794 ) - (405 ) 295 (905 ) -
 
NET INCOME $ 10,460   $ 7,732   $ 8,405   $ (20,727 ) $ 5,870   $ 5,733  
 
                                         
ADJUSTED WEIGHTED AVERAGE SHARES
      17,014         17,066         17,116         17,140         17,111         17,193  
 
Adjustment for anti-dilutive conversion of shares - - - 107 - -
           
Weighted average common shares outstanding (diluted)   17,014     17,066     17,116     17,033     17,111       17,193  
                                         
ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING SPECIAL CHARGES, NET OF TAX]
    $ 0.57       $ 0.45       $ 0.47       $ (1.20 )     $ 0.29       $ 0.33  
 
LESS: Special charges (recoveries), net of tax impact on EPS $ (0.05 ) $ - $ (0.02 ) $ 0.02 $ (0.05 ) $ -
             
EARNINGS PER COMMON SHARE (Diluted) $ 0.61   $ 0.45   $ 0.49   $ (1.22 ) $ 0.34     $ 0.33  
                                         
ADJUSTED INCOME, EXCLUDING SPECIAL CHARGES & Q4 20095 YEAR FUTURE ASBESTOS CLAIM LIABILITY, NET OF TAX
                      $ 5,458       $ 30,855       $ 5,733  
LESS:
Special charges (recoveries), net of tax 295 (905 ) -
5 year future asbestos claim liability (25,890 ) (25,890 ) -
NET INCOME       $ (20,727 ) $ 5,870     $ 5,733  
                                         
ADJUSTED EARNINGS PER SHARE, EXCLUDING SPECIAL CHARGES & Q4 20095 YEAR FUTURE ASBESTOS CLAIM LIABILITY, NET OF TAX
                      $ 0.32       $ 1.80       $ 0.33  
 
LESS: Special charges (recoveries), net of tax impact on EPS $ (0.05 ) $ - $ (0.02 ) $ 0.02 $ (0.05 ) $ -
5 year future asbestos claim liability $ (1.52 ) $ (1.51 ) $ -
           
EARNINGS PER COMMON SHARE (Diluted)       $ (1.22 ) $ 0.34   $ 0.33  
                         
 
CIRCOR INTERNATIONAL, INC
Leslie Controls Asbestos Items
(in thousands, except case information)
 
 
 

 

2009

 
 

2010
 

 

1ST QTR

 
 

2ND QTR

 
 

3RD QTR

 
 

4TH QTR

 
 

YTD
 

 

1ST QTR
 

Quarterly Case Rollforward
 
Beginning open cases 968 1,103 1,158 1,143 968 1,104
Cases filed 222 203 131 131 687 150
Cases resolved and dismissed (87 ) (148 ) (146 ) (170 ) (551 ) (104 )
           
Ending open cases   1,103     1,158     1,143     1,104     1,104     1,150  
 

Ending open mesothelioma cases
  578     584     612     597     597     623  
 

Income Statement Amounts
 
Indemnity costs accrued (filed cases) $ 4,602 $ 2,109 $ 1,140 $ 10 $ 7,861 $ 699
5 year future indemnity costs accrued - - - 39,800 39,800 -
Adverse verdict costs (verdicts appealed) 90 97 95 (1,308 ) (1,026 ) 65
Defense costs incurred 3,166 3,275 3,009 2,862 12,312 3,731
Insurance recoveries adjustment 2,069 - - - 2,069 (3,652 )
Insurance recoveries accrued (1,664 ) (2,039 ) (2,268 ) (966 ) (6,937 ) (1,491 )
           
Net pre-tax asbestos expense (recovery) $ 8,263   $ 3,442   $ 1,976   $ 40,398   $ 54,079   $ (648 )
 

Balance Sheet Amounts
 
Existing claim indemnity liability $ 20,781 $ 19,849 $ 20,060 $ 17,916 $ 17,932
Future claim indemnity liability - - - 39,800 39,800
Incurred defense cost liability 4,212 5,169 3,615 2,544 2,099
Insurance recoveries asset   (9,088 )   (7,426 )   (6,485 )   (4,614 )   (7,997 )
Net asbestos liability $ 15,905   $ 17,592   $ 17,190   $ 55,646   $ 51,834  

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