CIRCOR International, Inc. Reports First Quarter Results.BURLINGTON, Mass.--(BUSINESS WIRE)--Oct. 27, 1999-- CIRCOR International, Inc. (NYSE NYSE See: New York Stock Exchange :CIR (Committed Information Rate) In a frame relay network, the average transmission rate in bits per second (typically Kbps) for a virtual circuit. It defines the maximum rate that the network can handle under normal conditions. ) today reported net earnings for the first fiscal quarter ended September 30, 1999 of $1,688,000 or $.13 per share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis compared to $3,706,000 or $.27 a share for last fiscal year. Net revenues were $77,713,000 compared to $80,997,000 for the first quarter of last fiscal year. CIRCOR was spun off from Watts Industries, Inc. (NYSE:WTS See Windows Terminal Server. ) effective October 18, 1999 in a tax-free distribution of one share of CIRCOR for every two shares of Watts. During the quarter, CIRCOR incurred certain costs associated with consolidating and relocating certain production facilities and costs associated with operating the company as an independent public company. The tax affected impact of those combined expenses was approximately $1,400,000 or $.10 a share. CIRCOR monitors its operating performance in two market segments: Instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. and Fluid Regulation Products Group and the Petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. Products Group. Revenues for the Instrumentation and Fluid Regulation Products Group for the first quarter were $41,436,000 compared to $40,304,000 for last fiscal year or an increase of nearly 3%, and, operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the quarter were $3,863,000 compared to $5,319,000 for last fiscal year or a decrease of 27%. Revenues for the Petrochemical Products Group for the first quarter were $36,277,000 compared to $40,693,000 for last fiscal year or a decrease of nearly 11%, and, operating earnings for the quarter were $3,258,000 compared to $4,449,000 for last fiscal year or a decrease of nearly 27%. Chairman, President and Chief Executive Officer, David A. Bloss, Sr. said, "Our operating performance for the first quarter was in line with our expectations and reflected the lower levels of demand for fluid control products, particularly within our Petrochemical Products segment, caused by reduced global market prices for crude oil and natural gas. During the past year, we have initiated numerous projects to reduce our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and improve manufacturing efficiencies. Many of these activities are nearing completion and we should begin to realize some of the benefits of these efforts in our operating results during the next six months." Bloss added, "The Instrumentation and Fluid Regulation segment revenue increase for the quarter was primarily due to stronger domestic demand for steam products used in HVAC (Heating Ventilation Air Conditioning) In the home or small office with a handful of computers, HVAC is more for human comfort than the machines. In large datacenters, a humidity-free room with a steady, cool temperature is essential for the trouble-free and power applications. Operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for this segment decreased as a result of costs associated with the closedown close·down n. A suspension or termination of operations: a plant closedown. Noun 1. closedown - termination of operations; "they regretted the closure of the day care center" and relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of the Hoke hoke tr.v. hoked, hok·ing, hokes Slang To give an impressive but artificial, false, or deceptive quality to: hoked up some phony allegations. manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in Cresskill, NJ, to other facilities located in Spartanburg, SC and Berlin, CT. The decline in revenues and operating profits for our Petrochemical Products segment was caused by continuing weak demand for fluid control products, particularly large project activities, caused by the effects of the lower oil and gas prices that prevailed globally earlier this year. As a result, competitive pricing pressures and reduced manufacturing utilization have had a negative impact on our results for the quarter. In addition, manufacturing inefficiencies associated with the move of our Industrial Products Division from the Watts Industries plant in Franklin, NH to our KF Industries facility located in Oklahoma City Oklahoma City (1990 pop. 444,719), state capital, and seat of Oklahoma co., central Okla., on the North Canadian River; inc. 1890. The state's largest city, it is an important livestock market, a wholesale, distribution, industrial, and financial center, and a farm , OK also contributed to the decline in operating profits during the period." Bloss further stated, "We are, however, encouraged by the recent strengthening of oil and gas prices worldwide that should increase demand for our products. With the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. from Watts Industries now complete, we look forward to concentrating on our growth strategies and implementation of operational improvements." CIRCOR International Inc. is a leading provider of valves and related fluid control products that allow customers around the world to use fluids safely and efficiently in the instrumentation and fluid regulation and petrochemical markets. CIRCOR is headquartered at 35 Corporate Drive, Burlington, Mass. 01803. The Company can be found on the World Wide Web at www.circor.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. 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. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. The factors which may cause such differences include, among other things, CIRCOR's ability to complete future acquisitions and to successfully integrate future and past acquisitions; CIRCOR's ability to develop and market new products; the competitive environment; and general economic conditions. For further information, please refer to CIRCOR's filings with the Securities and Exchange Commission. -0-
CIRCOR International, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations
(unaudited)
First Quarter Ended
September 30,
1999 1998
Net revenues $77,713,000 $80,997,000
Cost of revenues 54,574,000 55,167,000
Selling, general and administrative 17,726,000 17,580,000
Other (income) expense, net 2,449,000 1,831,000
_________ _________
Income before income taxes 2,964,000 6,419,000
Provision for income taxes 1,276,000 2,713,000
__________ _________
Net income $1,688,000 $3,706,000
Diluted Earnings Per Share:
Weighted average number of common
shares & equivalents 13,262,706 13,542,094
Earnings per share $.13 $.27
CIRCOR International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, 1999 June 30, 1999
Cash and short-term investments $5,408,000 $6,714,000
Other current assets 181,875,000 177,503,000
Property, plant and equipment, at cost 147,222,000 149,734,000
Less: accumulated depreciation (69,837,000) (73,052,000)
___________ ___________
Net property, plant and equipment 77,385,000 76,682,000
Other assets 100,950,000 101,471,000
___________ ___________
Total assets $365,618,000 $362,370,000
Current liabilities $51,709,000 $58,149,000
Long-term debt 120,924,000 112,070,000
Deferred income taxes 10,780,000 10,766,000
Other liabilities 11,468,000 11,795,000
Stockholder's equity 170,737,000 169,590,000
___________ ___________
Total liabilities and stockholders'
equity $365,618,000 $362,370,000
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