CIRCOR Reports Fourth-Quarter and Year-End 2015 Financial Results

BURLINGTON, Mass.--(BUSINESS WIRE)--Feb. 19, 2016-- CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for markets including oil & gas, power generation and aerospace & defense, today announced financial results for the fourth quarter and fiscal year ended December 31, 2015.

Fourth-Quarter 2015 Highlights

Revenues of $164.2 million
Adjusted EPS of $0.63
Cost control and restructuring actions continue to drive bottom-line performance
Consolidated adjusted operating margin at 10.2%, up 60 bps
Energy adjusted operating margin at 13.4%
Aerospace & Defense adjusted operating margin at 10.4%
Free cash flow of $28.4 million

“CIRCOR concluded 2015 with solid fourth-quarter performance, demonstrating continued progress on our margin expansion and simplification strategy,” said Scott Buckhout, President and Chief Executive Officer. “We achieved the $12 million in savings we anticipated from restructuring and simplification actions during 2015, which contributed to consolidated margin improvement of 60 basis points to 10.2% in Q4.”

“Our Energy team has done a great job aligning our cost structure to the weakness we are experiencing in our Energy markets,” said Buckhout. “In Aerospace & Defense, our margin expansion initiatives continue to improve the bottom line. As expected, we achieved double-digit margins in the fourth quarter, up over 500 basis points from the prior year. Cash flow was strong in the quarter as we improve our ability to align our working capital needs with market demands.”

“Laying the foundation for above-market growth remains our top priority globally. We continue to invest in long-term growth initiatives across both operating segments, including sales and marketing, new product development and engineering. Operationally, customer on-time delivery averaged 90% in the quarter, up from 79% at the beginning of the year. Finally, we continue to focus on disciplined capital deployment including complementary acquisitions,” concluded Buckhout.

First-Quarter 2016 Guidance
For the first quarter of 2016, the Company will provide its guidance during the conference call later today.


Selected Consolidated Results
($ millions except EPS)	Q4 2015		Q4 2014²		Change		FY 2015		FY 2014²		Change
Revenue	$	164.2	$	218.6		(25)%	$	656.3	$	841.4		(22)%
GAAP Operating Income	$	12.3	$	8.2		51%	$	26.2	$	64.8		(60)%
Adjusted Operating Income¹	$	16.7	$	21.0		(20)%	$	62.5	$	86.2		(27)%
Adjusted Operating Margin¹		10.2%		9.6%		60 bps		9.5%		10.2%		(70) bps
GAAP Earnings Per Share (Diluted)	$	0.43	$	0.51		(16)%	$	0.58	$	2.84		(80)%
Adjusted Earnings Per Share (Diluted)¹	$	0.63	$	1.08		(42)%	$	2.43	$	3.72		(35)%
Free Cash Flow	$	28.4	$	22.3		27%	$	16.6	$	58.0		(71)%
Orders	$	137.9	$	203.4		(32)%	$	590.4	$	849.3		(30)%


Segment Results
($ millions)	Q4 2015		Q4 2014²		Change		FY 2015		FY 2014²		Change
Energy
Revenue	$	124.4	$	172.4		(28)%	$	502.1	$	653.3		(23)%
Adjusted Operating Margin¹		13.4%		14.3%		(90) bps		14.0%		14.9%		(90) bps
Orders	$	97.9	$	158.3		(38)%	$	446.5	$	675.9		(34)%


Aerospace & Defense
Revenue	$	39.8	$	46.1		(14)%	$	154.1	$	188.2		(18)%
Adjusted Operating Margin¹		10.4%		5.3%		510 bps		9.1%		6.6%		250 bps
Orders	$	40.0	$	45.1		(11)%	$	143.9	$	173.4		(17)%

1. Consolidated and Segment Results for Q4 2015 exclude special, restructuring and impairment charges totaling $4.5 million. This includes (i) $2.1 million related to the closure of the Brazil manufacturing operations, including a restructuring-related inventory charge of $0.5 million; (ii) $2.2 million for Schroedahl intangible amortization expense; (iii) restructuring-related inventory charges of $0.5 million and (iv) other net gain of $0.3 million. Q4 2014 results excluded special and restructuring charges of $12.2 million and impairment charges of $0.7 million.

2. Q4 2014 and FY 2014 amounts have not been adjusted for divestitures.

Conference Call Information
CIRCOR International will hold a conference call to review its financial results today, February 19, 2016, at 9:00 a.m. ET. To listen to the conference call and view the accompanying presentation slides, visit “Webcasts & Presentations” in the “Investors” portion of the CIRCOR website. The call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. 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 share (diluted), adjusted operating margin, adjusted operating income 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. 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 AND SUBSEQUENT REPORTS ON FORMS 10-Q AND 10-Q/A, 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 highly engineered products and sub-systems for markets including oil & gas, power generation and aerospace & defense. CIRCOR has a diversified product portfolio with recognized, market-leading brands that fulfill its customers’ unique application needs. The Company’s strategy is to grow organically and through complementary acquisitions; simplify CIRCOR’s operations; achieve world class operational excellence; and attract and retain top industry talent. For more information, visit the Company’s investor relations website at http://investors.circor.com.


CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
UNAUDITED
	Three Months Ended					Twelve Months Ended
	December 31, 2015		December 31, 2014			December 31, 2015		December 31, 2014
Net revenues	$	164,243	$	218,558		$	656,267	$	841,446
Cost of revenues	113,747		148,093			456,935		584,426
GROSS PROFIT	50,496		70,465			199,332		257,020
Selling, general and administrative expenses	36,959		49,430			156,302		178,800
Impairment charges	—		726			2,502		726
Special charges, net	1,256		12,159			14,354		12,737
OPERATING INCOME	12,281		8,150			26,174		64,757
Other expense (income):
Interest expense, net	570		407			2,844		2,652
Other expense (income), net	2,099		(722		)	902		(1,156		)
TOTAL OTHER EXPENSE (INCOME), NET	2,669		(315		)	3,746		1,496
INCOME BEFORE INCOME TAXES	9,612		8,465			22,428		63,261
Provision for (benefit from) income taxes	2,456		(690		)	12,565		12,875
NET INCOME	$	7,156	$	9,155		$	9,863	$	50,386
Earnings per common share:
Basic	$	0.44	$	0.52		$	0.59	$	2.85
Diluted	$	0.43	$	0.51		$	0.58	$	2.84
Weighted average number of common shares outstanding:
Basic	16,425		17,678			16,850		17,660
Diluted	16,555		17,782			16,913		17,768
Dividends paid per common share	$	0.0375	$	0.0375		$	0.1500	$	0.1500


CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(UNAUDITED)
	Twelve Months Ended
	December 31, 2015			December 31, 2014			December 31, 2013
OPERATING ACTIVITIES
Net income	$	9,863		$	50,386		$	47,121
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	14,254			16,446			16,034
Amortization	9,681			3,116			3,039
Provision for bad debt expense	2,561			7,817			1,194
Loss on write down of inventory	15,404			12,993			4,944
Impairment charges	2,502			726			6,872
Compensation expense of share-based plans	6,579			7,188			5,056
Tax effect of share-based plan compensation	(134		)	(756		)	(732		)
Deferred income tax expense (benefit)	781			(2,740		)	5,778
Loss (gain) on write down of property, plant and equipment	305			(79		)	(322		)
(Gain) loss on sale of businesses	(1,044		)	3,413			—
Gain on return of acquisition purchase price	—			—			(3,400		)
Changes in operating assets and liabilities, net of effects of acquisition and dispositions:
Trade accounts receivable	20,393			(38,439		)	7,009
Inventories	(14,446		)	(16,945		)	(5,255		)
Prepaid expenses and other assets	(4,786		)	884			160
Accounts payable, accrued expenses and other liabilities	(34,771		)	26,816			(15,292		)
Net cash provided by operating activities	27,142			70,826			72,206
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(12,711		)	(12,810		)	(17,328		)
Proceeds from the sale of property, plant and equipment	2,209			791			664
Business acquisitions, return of purchase price	—			—			3,400
Proceeds from divestitures	2,759			10,177			—
Business acquisition, net of cash acquired	(79,983		)	—			—
Net cash used in investing activities	(87,726		)	(1,842		)	(13,264		)
FINANCING ACTIVITIES
Proceeds from long-term debt	261,394			150,062			146,578
Payments of long-term debt	(182,004		)	(185,361		)	(166,239		)
Debt issuance costs	—			(920		)	—
Dividends paid	(2,559		)	(2,681		)	(2,700		)
Proceeds from the exercise of stock options	258			420			2,394
Tax effect of share-based plan compensation	134			756			732
Purchases of common stock	(74,972		)	—			—
Net cash provided by (used in) financing activities	2,251			(37,724		)	(19,235		)
Effect of exchange rate changes on cash and cash equivalents	(8,498		)	(12,163		)	729
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(66,831		)	19,097			40,436
Cash and cash equivalents at beginning of year	121,372			102,275			61,839
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	54,541		$	121,372		$	102,275


CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
UNAUDITED
	December 31, 2015			December 31, 2014
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	54,541		$	121,372
Trade accounts receivable, less allowance for doubtful accounts of $8,290 and $9,536, respectively	125,628			156,738
Inventories	177,840			183,434
Prepaid expenses and other current assets	16,441			21,626
Deferred income tax asset	—			22,861
Total Current Assets	374,450			506,031
PROPERTY, PLANT AND EQUIPMENT, NET	87,029			96,212
OTHER ASSETS:
Goodwill	115,452			72,430
Intangibles, net	48,981			26,887
Deferred income tax asset	36,799			19,048
Other assets	7,204			4,114
TOTAL ASSETS	$	669,915		$	724,722
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	64,284		$	87,112
Accrued expenses and other current liabilities	52,878			63,911
Accrued compensation and benefits	18,424			24,728
Income taxes payable	6,585			1,312
Notes payable and current portion of long-term debt	—			8,423
Total Current Liabilities	142,171			185,486
LONG-TERM DEBT, NET OF CURRENT PORTION	90,500			5,261
DEFERRED INCOME TAXES	10,424			7,771
OTHER NON-CURRENT LIABILITIES	26,043			32,111
SHAREHOLDERS’ EQUITY:
Common stock	177			177
Additional paid-in capital	283,621			277,227
Retained earnings	257,939			250,635
Common treasury stock, at cost	(74,972		)	—
Accumulated other comprehensive loss, net of tax	(65,988		)	(33,946		)
Total Shareholders’ Equity	400,777			494,093
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	669,915		$	724,722


CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in millions)
UNAUDITED
	Three Months Ended				Twelve Months Ended
ORDERS (1)	December 31, 2015		December 31, 2014		December 31, 2015		December 31, 2014
Energy	$	97.9	$	158.3	$	446.5	$	675.9
Aerospace & Defense	40.0		45.1		143.9		173.4
Total orders	$	137.9	$	203.4	$	590.4	$	849.3

BACKLOG (2)	December 31, 2015		December 31, 2014
Energy	$	176.8	$	252.1
Aerospace & Defense	92.2		108.8
Total backlog	$	269.0	$	361.0

Note 1: Orders do not include the foreign exchange impact due to the re-measurement of customer order backlog amounts denominated in foreign currencies.
Note 2: Backlog includes unshipped customer orders.


CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share and percentages)
UNAUDITED

	2014															2015
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL
NET REVENUES
Energy	$	162,587		$	160,580		$	157,658		$	172,432		$	653,257		$	127,586		$	127,230		$	122,905		$	124,412		$	502,133
Aerospace & Defense	48,599			47,304			46,160			46,126			188,189			38,274			39,676			36,353			39,832			154,134
Total	$	211,186		$	207,884		$	203,818		$	218,558		$	841,446		$	165,860		$	166,906		$	159,258		$	164,243		$	656,267
ADJUSTED OPERATING MARGIN
Energy	13.8		%	14.6		%	16.9		%	14.3		%	14.9		%	13.8		%	13.4		%	15.4		%	13.4		%	14.0		%
Aerospace & Defense	9.1		%	7.1		%	5.0		%	5.3		%	6.6		%	8.0		%	8.8		%	9.1		%	10.4		%	9.1		%
Segment operating margin	12.7		%	12.9		%	14.2		%	12.4		%	13.0		%	12.4		%	12.3		%	14.0		%	12.7		%	12.8		%
Corporate expenses	(3.4		)%	(2.2		)%	(2.8		)%	(2.7		)%	(2.8		)%	(3.6		)%	(3.3		)%	(3.8		)%	(2.5		)%	(3.3		)%
Adjusted operating margin	9.4		%	10.7		%	11.4		%	9.6		%	10.2		%	8.8		%	9.0		%	10.1		%	10.2		%	9.5		%
Restructuring related inventory charges	—		%	2.5		%	1.4		%	—		%	0.9		%	—		%	1.2		%	4.0		%	0.6		%	1.4		%
Impairment charges	—		%	—		%	—		%	0.3		%	0.1		%	—		%	—		%	1.6		%	—		%	0.4		%
Special restructuring charges, net	0.4		%	0.6		%	0.2		%	1.2		%	0.6		%	0.9		%	1.9		%	0.2		%	(0.2		)%	0.7		%
Special acquisition amortization	—		%	—		%	—		%	—		%	—		%	—		%	1.3		%	1.6		%	1.4		%	1.0		%
Special other charges, net	(0.9		)%	—		%	—		%	4.3		%	0.9		%	—		%	0.1		%	5.0		%	1.0		%	1.5		%
Brazil restatement impact	—		%	—		%	—		%	—		%	—		%	0.4		%	1.5		%	—		%	—		%	0.5		%
Total GAAP operating margin	9.9		%	7.6		%	9.7		%	3.7		%	7.7		%	7.4		%	3.0		%	(2.2		)%	7.5		%	4.0		%


	2014															2015
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL
ADJUSTED OPERATING INCOME
Energy	$	22,462		$	23,502		$	26,577		$	24,575		$	97,117		$	17,550		$	17,008		$	18,932		$	16,724		$	70,214
Aerospace & Defense	4,426			3,362			2,295			2,425			12,508			3,045			3,494			3,298			4,146			13,982
Segment operating income	26,888			26,864			28,872			27,000			109,624			20,595			20,502			22,230			20,870			84,197
Corporate expenses	(7,137		)	(4,634		)	(5,678		)	(5,965		)	(23,415		)	(6,034		)	(5,477		)	(6,078		)	(4,122		)	(21,710		)
Adjusted operating income	19,750			22,231			23,194			21,035			86,209			14,561			15,025			16,152			16,748			62,487
Restructuring related inventory charges	—			5,139			2,850			—			7,989			—			2,005			6,412			974			9,391
Impairment charges	—			—			—			726			726			—			—			2,502			—			2,502
Special restructuring charges, net	786			1,257			478			2,725			5,246			1,512			3,127			342			(347		)	4,634
Special acquisition amortization	—			—			—			—			—			—			2,110			2,490			2,238			6,838
Special other charges, net	(1,943		)	—			—			9,434			7,491			(1		)	183			7,935			1,603			9,720
Brazil restatement impact	—			—			—			—			—			719			2,509			—			—			3,228
Total GAAP operating income (loss)	20,907			15,834			19,866			8,150			64,756			12,331			5,090			(3,529		)	12,281			26,174
INTEREST EXPENSE, NET	(918		)	(891		)	(436		)	(407		)	(2,652		)	(640		)	(805		)	(828		)	(570		)	(2,844		)
OTHER INCOME (EXPENSE), NET	468			384			(419		)	722			1,156			506			104			587			(2,099		)	(902		)
PRETAX INCOME (LOSS)	20,457			15,328			19,012			8,465			63,261			12,197			4,389			(3,770		)	9,612			22,428
(PROVISION FOR) BENEFIT FROM INCOME TAXES	(5,825		)	(3,402		)	(4,337		)	690			(12,875		)	(3,284		)	(2,517		)	(4,308		)	(2,456		)	(12,565		)
EFFECTIVE TAX RATE	28.5		%	22.2		%	22.8		%	(8.2		)%	20.4		%	26.9		%	57.3		%	(114.3		)%	25.6		%	56.0		%
NET INCOME (LOSS)	$	14,632		$	11,926		$	14,675		$	9,155		$	50,386		$	8,913		$	1,872		$	(8,078	)	$	7,156		$	9,863
Weighted Average Common Shares Outstanding (Diluted)	17,741			17,767			17,779			17,782			17,768			17,712			16,900			16,485			16,555			16,913
EARNINGS (LOSS) PER COMMON SHARE (Diluted)	$	0.82		$	0.67		$	0.83		$	0.51		$	2.84		$	0.50		$	0.11		$	(0.49	)	$	0.43		$	0.58


CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands, except earnings per share and percentages)
UNAUDITED

	2014															2015
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL
FREE CASH FLOW AS % OF NET INCOME (LOSS)	98		%	62		%	96		%	243		%	115		%	(207		)%	239		%	(27		)%	397		%	169		%
FREE CASH FLOW	$	14,387		$	7,365		$	14,015		$	22,249		$	58,016		$	(18,415	)	$	4,483		$	2,169		$	28,403		$	16,640
ADD:
Capital expenditures, net of sale proceeds	2,670			2,933			3,297			3,910			12,810			1,983			3,584			2,837			2,098			10,502
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	17,057		$	10,298		$	17,312		$	26,159		$	70,826		$	(16,432	)	$	8,067		$	5,006		$	30,501		$	27,142
NET (CASH) DEBT	$	(66,056	)	$	(72,982	)	$	(80,829	)	$	(107,688	)	$	(107,688	)	$	(66,337	)	$	59,051		$	57,277		$	35,959		$	35,959
ADD:
Cash and cash equivalents	122,189			116,421			114,671			121,372			121,372			103,883			55,027			53,822			54,541			54,541
TOTAL DEBT	$	56,133		$	43,439		$	33,842		$	13,684		$	13,684		$	37,546		$	114,078		$	111,099		$	90,500		$	90,500
TOTAL SHAREHOLDERS' EQUITY	$	492,601		$	507,363		$	508,035		$	494,093		$	494,093		$	462,384		$	421,070		$	407,979		$	400,777		$	400,777
DEBT AS % OF EQUITY	11		%	9		%	7		%	3		%	3		%	8		%	27		%	27		%	23		%	23		%


	2014															2015
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL
ADJUSTED NET INCOME	$	13,916		$	16,090		$	16,827		$	19,188		$	66,019		$	10,564		$	9,357		$	10,635		$	10,512		$	41,068
LESS:
Restructuring related inventory charges, net of tax	—			3,316			1,839			—			5,155			—			1,339			6,412			799			8,550
Impairment charges, net of tax	—			—			—			726			726			—			—			2,502			—			2,502
Special restructuring charges, net of tax	508			848			313			1,763			3,432			1,079			2,175			304			(561		)	2,997
Special acquisition amortization, net of tax	—			—			—			—			—			—			1,409			1,587			1,695			4,691
Special other net charges, net of tax	(1,224		)	—			—			7,544			6,320			(147		)	53			7,908			1,423			9,237
Brazil restatement impact	—			—			—			—			—			719			2,509			—			—			3,228
NET INCOME (LOSS)	$	14,632		$	11,926		$	14,675		$	9,155		$	50,386		$	8,913		$	1,872		$	(8,078	)	$	7,156		$	9,863
ADJUSTED EARNINGS PER SHARE (Diluted)	$	0.78		$	0.91		$	0.95		$	1.08		$	3.72		$	0.60		$	0.55		$	0.64		$	0.63		$	2.43
LESS:
Restructuring related inventory charges, net of tax	—			0.19			0.10			—			0.29			—			0.08			0.39			0.05			0.51
Impairment charges, net of tax	—			—			—			0.04			0.04			—			—			0.15			—			0.15
Special restructuring charges, net of tax	0.03			0.05			0.02			0.10			0.20			0.06			0.13			0.02			(0.03		)	0.18
Special acquisition amortization, net of tax	—			—			—			—			—			—			0.08			0.10			0.10			0.28
Special other net charges, net of tax	(0.07		)	—			—			0.42			0.35			—			—			0.47			0.08			0.54
Brazil restatement impact	—			—			—			—			—			0.04			0.15			—			—			0.19
EARNINGS (LOSS) PER COMMON SHARE (Diluted)	$	0.82		$	0.67		$	0.83		$	0.51		$	2.84		$	0.50		$	0.11		$	(0.49	)	$	0.43		$	0.58


	2014															2015
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL			1ST QTR			2ND QTR			3RD QTR			4TH QTR			TOTAL
ADJUSTED EBITDA	$	25,073		$	27,536		$	27,530		$	26,789		$	106,927		$	19,299		$	19,474		$	20,980		$	18,927		$	78,681
LESS:
Restructuring related inventory charges	—			(5,139		)	(2,850		)	—			(7,989		)	—			(2,005		)	(6,412		)	(974		)	(9,391		)
Impairment charges	—			—			—			(726		)	(726		)	—			—			(2,502		)	—			(2,502		)
Special restructuring charges, net	(786		)	(1,257		)	(478		)	(2,725		)	(5,246		)	(1,512		)	(3,127		)	(342		)	347			(4,634		)
Special other charges, net	1,943			—			—			(9,434		)	(7,491		)	1			(183		)	(7,935		)	(1,603		)	(9,720		)
Brazil restatement impact	—			—			—			—			—			(719		)	(2,509		)	—			—			(3,228		)
EBITDA	$	26,230		$	21,140		$	24,202		$	13,904		$	85,475		$	17,068		$	11,650		$	3,789		$	16,698		$	49,206
LESS:
Interest expense, net	(918		)	(891		)	(436		)	(407		)	(2,652		)	(641		)	(805		)	(828		)	(570		)	(2,844		)
Depreciation	(4,069		)	(4,116		)	(3,978		)	(4,283		)	(16,446		)	(3,521		)	(3,629		)	(3,526		)	(3,578		)	(14,254		)
Amortization, including special acquisition	(786		)	(805		)	(776		)	(749		)	(3,116		)	(710		)	(2,827		)	(3,205		)	(2,939		)	(9,681		)
(Provision for) benefit from income taxes	(5,825		)	(3,402		)	(4,337		)	690			(12,875		)	(3,284		)	(2,517		)	(4,308		)	(2,456		)	(12,565		)
NET INCOME (LOSS)	$	14,632		$	11,926		$	14,675		$	9,155		$	50,386		$	8,913		$	1,872		$	(8,078	)	$	7,156		$	9,863

CIRCOR INTERNATIONAL, INC. RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS (in thousands, except per share data) UNAUDITED

	2014
	1ST QTR			2ND QTR		3RD QTR		4TH QTR		TOTAL
NET REVENUES EXCLUDING DIVESTITURES	$	198,204		$	194,349	$	189,705	$	207,970	$	790,228
ADD:
Energy divestiture	10,554			10,037		10,667		8,465		39,723
Aerospace & Defense divestiture	2,428			3,498		3,446		2,123		11,495
NET REVENUES	$	211,186		$	207,884	$	203,818	$	218,558	$	841,446
ADJUSTED EARNINGS PER SHARE EXCLUDING DIVESTITURES (Diluted)	0.79			0.88		0.89		1.05		3.61
ADD:
Divestitures	(0.01		)	0.03		0.06		0.03		0.11
ADJUSTED EARNINGS PER SHARE (Diluted)	$	0.78		$	0.91	$	0.95	$	1.08	$	3.72

View source version on businesswire.com: http://www.businesswire.com/news/home/20160219005360/en/

Source: CIRCOR International, Inc.

CIRCOR International
Rajeev Bhalla, 781-270-1200
Executive Vice President & Chief Financial Officer

News Release

CIRCOR Reports Fourth-Quarter and Year-End 2015 Financial Results