CIRCOR International, Inc. (NYSE:CIR) Q1 2018 Earnings Conference Call Transcript

May 02, 2018 • 09:00 am ET


CIRCOR International, Inc. (NYSE:CIR) Q1 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to CIRCOR International's First Quarter Fiscal Year 2018 Financial Results Conference Call. Today's call will be recorded. At this time, all participants have been placed in a listen-only mode. There will be an opportunity for questions and comments after the prepared remarks. (Operator Instructions)

I would now like to turn the conference over to Mr. David Calusdian from Sharon Merrill for opening remarks and introductions. Please go ahead.

David C. Calusdian

Thank you, and good morning, everyone. On the call today is Scott Buckhout, CIRCOR's President and CEO; and Rajeev Bhalla, the Company's Chief Financial Officer. The slides we'll be referring to today are available on CIRCOR's website at on the Webcast & Presentation section of the Investors link.

Please turn to slide 2. Today's discussion contains forward-looking statements that identify future expectations. These expectations are subject to known and unknown risks, uncertainties and other factors. For a full discussion of these factors, the Company advises you to review CIRCOR's Form 10-K, 10-Qs and other SEC filings. The Company's filings are available on its website at Actual results could differ materially from those anticipated or implied by today's remarks. Any forward-looking statements only represent the Company's view as of today, May 2, 2018. While CIRCOR may choose to update these forward-looking statements at a later date, the Company specifically disclaims any duty to do so.

On today's call, management will refer to adjusted operating income, adjusted operating margins, adjusted net income, adjusted EPS, free cash flow, organic measures and pro forma amounts. These non-GAAP metrics exclude any special charges and recoveries. The reconciliation of CIRCOR's non-GAAP metrics to the comparable GAAP measures are available in the financial tables of the earnings press release on CIRCOR's website.

I'll now turn the call over to Mr. Buckhout. Please turn to slide 3.

Scott A. Buckhout

Thank you, David. Good morning, everyone, and thank you for joining us. The CIRCOR team got off to a strong start in the first quarter, as the momentum we saw across many of our end markets at the end of 2017 continued in the first quarter. We reported adjusted EPS of $0.40 on revenue of approximately $276 million, both slightly better than we expected as we entered the quarter. We booked over $325 million of orders, representing a book-to-bill ratio of almost 1.2. This is the first quarter under our new segment reporting structure and the first full quarter including the acquisition of Colfax's Fluid Handling business, which we completed in December of last year.

Our three reporting segments are aligned with our primary end markets, Industrial, Energy and Aerospace & Defense. Industrial orders of $137 million were up 19% on a pro forma organic basis. Order strength in industrial was largely driven by general industry globally and commercial marine markets in Europe. We saw strong year-over-year orders in both new equipment and aftermarket parts. Energy orders were up 2% on a pro forma organic basis, reflecting growth in Refinery Valves and Engineered Valves. Orders