Business Wire | Mar 4, 2021 06:30AM EST

CIRCOR Reports Fourth-Quarter 2020 and Full Year 2020 Financial Results

Mar. 04, 2021

BURLINGTON, Mass.--(BUSINESS WIRE)--Mar. 04, 2021--CIRCOR International, Inc. (NYSE: CIR), one of the world's leading providers of mission critical flow control products and services for the Industrial and Aerospace & Defense markets, today announced GAAP and adjusted financial results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020:

* Revenue of $208 million, down (14)% reported and (10)% organically Aerospace & Defense revenue of $78 million, down (2)% reported and (3)% organically Industrial revenue of $131 million, down (20)% reported, and (13)% organically * GAAP operating margin of 4.8%; Adjusted operating margin of 11.2% * GAAP earnings per share of $(0.70); Adjusted earnings per share of $0.66 * Strong operating cash flow of $24 million; Free cash flow of $20 million

Full Year 2020:

* Revenue of $773 million, down (20)% reported and (12)% organically Aerospace & Defense revenue of $268 million, down (2)% reported and (2)% organically Industrial revenue of $505 million, down (27)% reported and (17)% organically * GAAP operating margin of (7.8)%; Adjusted operating margin of 8.7% * GAAP earnings per share of $(9.28); Adjusted earnings per share of $1.43 * Completed $45 million cost reduction & avoidance plan; revenue drop through to earnings of 25% * Operating cash flow of $(23) million impacted by exit of upstream oil & gas and one-time cash charges; Free cash flow of $(35) million * Reduced net debt by $126 million / (22)% and interest expense by $14 million * Launched 49 new products in 2020 vs. 33 in 2019

CIRCOR President and CEO Scott Buckhout said, "Our teams were faced with an unprecedented challenge presented by the global COVID-19 pandemic in 2020 - a challenge we met head on by prioritizing the health and safety of our employees, delivering mission critical equipment and service to our customers, and executing difficult but necessary cost out actions to preserve our financial strength. I am proud of the resilience and remarkable effort of the entire CIRCOR team in navigating a challenging and dynamic year."

Mr. Buckhout continued, "Despite the difficult macro environment, we made significant progress on executing our strategic plan. We successfully completed our exit from upstream oil & gas with the sale of Instrumentation & Sampling and Distributed Valves and significantly reduced our debt position with the proceeds from these sales. We also executed our value-based pricing strategy across both businesses while launching a record number of new products in collaboration with our customers and suppliers. I am confident that these efforts along with our continued focus on improving our operations and execution using the CIRCOR Operating System will position us to take full advantage of an eventual market recovery."

Mr. Buckhout concluded, "Looking ahead to 2021, our team remains focused on delivering for our customers, shareholders, and employees by executing strategic initiatives that drive organic growth, expand margins, and drive improved free cash flow to further reduce debt."

2021 Guidance

For the full year of 2021, CIRCOR expects organic revenue growth in the range of 0 to 4%, with low to mid-single digit growth in Aerospace and Defense and low-single digit growth in Industrial. Adjusted EPS is expected to be in the range of $2.00 to $2.20 driven by increased sales volume and improved operating margins. CIRCOR also expects its adjusted net income to free cash flow conversion to be 85% - 95%. Free cash flow generated in 2021 will be used to deleverage CIRCOR, and the company continues to target a net debt to adjusted EBITDA ratio of 2.0x to 2.5x. Presentation slides that provide supporting information to this guidance and fourth-quarter and year-end results are posted on the "Investors" section of the Company's website and will be discussed during the conference call at 9:00 a.m. ET today.

Selected Preliminary Consolidated Results

($ in Q4 YTD Q4 YTDmillions Q4 2020 Q4 2019 Change 2020 2019 Changeexcept EPS)

Revenue $ 208.4 $ 242.6 -14 % $ 773.3 $ 964.3 -20 %

Revenue -excluding 208.4 224.0 -7 % 768.4 869.1 -12 %divestedbusinesses^1

GAAPoperating 9.9 17.0 -42 % (60.4) 37.7 -260 %(loss) income

Adjustedoperating 23.3 32.2 -28 % 67.6 109.8 -38 %income^2

GAAP -220 -1170operating 4.8 % 7.0 % bps (7.8) % 3.9 % bpsmargin

Adjusted -210 -270operating 11.2 % 13.3 % bps 8.7 % 11.4 % bpsmargin^2

Adjustedoperating -180 -180margin ex 11.2 % 13.0 % bps 8.8 % 10.6 % bpsdivestitures^2

GAAP (loss)earnings per $ (0.70) $ 0.08 -975 % $ (9.28) $ (6.73) -38 %share(diluted)

Adjustedearnings per $ 0.66 $ 0.82 -20 % $ 1.43 $ 2.62 -45 %share(diluted)^2

Operating 23.6 16.8 40 % (22.7) 15.9 -243 %cash flow

Free cash 20.4 18.4 11 % (35.3) 11.7 -402 %flow^3

Orders 168.5 236.6 -29 % 736.2 977.5 -25 %

Orders -excluding 168.5 218.5 -23 % 731.7 882.3 -17 %divestedbusinesses^1

Segment Results

($ in Q4 2020 Q4 2019 Change Q4 2020 Q4 2019 Changemillions)

Aerospace & Defense

Revenue $ 77.8 $ 79.1 -2 % $ 267.8 $ 272.6 -2 %

Segmentoperating 18.7 19.1 -2 % 59.1 52.5 13 %income

Segment -20 290operating 24.0 % 24.2 % bps 22.1 % 19.2 % bpsmargin

Orders 46.8 68.5 -32 % 254.5 313.9 -19 %



Industrial

Revenue $ 130.5 $ 163.6 -20 % $ 505.4 $ 691.7 -27 %

Revenue -excluding 130.5 145.0 -10 % 500.5 596.5 -16 %divestedbusinesses^1

Segmentoperating 12.4 20.8 -40 % 39.8 90.8 -56 %income

Segment -320 -520operating 9.5 % 12.7 % bps 7.9 % 13.1 % bpsmargin

Orders 121.7 168.1 -28 % 481.6 663.6 -27 %

Orders -excluding 121.7 150.0 -19 % 477.2 568.4 -16 %divestedbusinesses^1

* Orders and revenue excluding divested businesses are non-GAAP measures and are calculated by subtracting the orders and revenues generated by the divested businesses during the periods prior to their divestiture from reported orders and revenues. Divested businesses include Reliability Services, Spence/Nicholson and Instrumentation & Sampling (all Industrial) which were sold before December 31, 2020. * Adjusted consolidated and segment results for Q4 2020 exclude net loss from discontinued operations of $0.8 million and net loss from non-cash acquisition-related intangible amortization, special and restructuring charges totaling $13.4 million. These charges include: (i) $12.0 million for non-cash acquisition-related intangible amortization and depreciation expense; (ii) $1.4 million of professional fees and other costs associated with restructuring and cost reductions. It also excludes the Q4 2020 charge for valuation allowance against deferred tax assets by virtue of using an effective tax rate in the adjusted results which is a $14.8 million adjustment to taxes. Adjusted consolidated and segment results for Q4 2019 exclude net loss from discontinued operations of $1.6 million and net loss from non-cash acquisition-related intangible amortization, special and restructuring charges totaling $15.2 million ($13.4 million, net of tax). These charges include: (i) $12.2 million for non-cash acquisition-related intangible amortization expense and amortization of the step-up in fixed asset values; (ii) $2.3 million related to restructuring and cost saving initiatives; (iii) $1.3 million of professional fees associated with an unsolicited tender offer to acquire all outstanding shares of the Company's common stock; (iv) $1.2 million related to divestitures, partially offset by (v) a $1.8 million gain on the sale of a building. * Free cash flow is a non-GAAP financial measure and is calculated by subtracting GAAP capital expenditures, net of proceeds from asset sales, from GAAP operating cash flow. Conference Call Information

CIRCOR International will hold a conference call to review its financial results at 9:00 a.m. ET today, March 4, 2021. To listen to the live conference call and view the accompanying presentation slides, please visit "Webcasts & Presentations" in the "Investors" section of CIRCOR's website. The live call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. The webcast will be archived on the Company's website for one year.

Use of Non-GAAP Financial Measures

Adjusted operating income, adjusted operating margin, adjusted net income, adjusted earnings per share (diluted), EBITDA, adjusted EBITDA, net debt, free cash flow and organic growth (and such measures further excluding discontinued operations) are non-GAAP financial measures. These non-GAAP financial measures are used by management in our financial and operating decision making because we believe they reflect our ongoing business and facilitate period-to-period comparisons. We believe these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does, if they so choose. These non-GAAP financial measures also allow investors and others to compare the Company's current financial results with the Company's past financial results in a consistent manner. For example:

We exclude costs and tax effects associated with restructuring activities, such as reducing overhead and consolidating facilities. We believe that the costs related to these restructuring activities are not indicative of our normal operating costs.

We exclude certain acquisition-related costs, including significant transaction costs and amortization of inventory and fixed-asset step-ups and the related tax effects. We exclude these costs because we do not believe they are indicative of our normal operating costs.

We exclude the expense and tax effects associated with the non-cash amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives up to 25 years. Exclusion of the non-cash amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.

We also exclude certain gains/losses and related tax effects, which are either isolated or cannot be expected to occur again with any predictability, and that we believe are not indicative of our normal operating gains and losses. For example, we exclude gains/losses from items such as the sale of a business, significant litigation-related matters and lump-sum pension plan settlements.

We exclude the results of discontinued operations.

We exclude goodwill impairment charges.

Due to the significance of recently sold businesses and to provide a comparison of changes in our orders and revenue, we also discuss these changes on an "organic" basis. Organic is calculated assuming the divestitures completed prior to December 31, 2020 were completed on January 1, 2019 and excluding the impact of changes in foreign currency exchange rates.

CIRCOR's management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company's operating performance and comparing such performance to that of prior periods and to the performance of our competitors. We use such measures when publicly providing our business outlook, assessing future earnings potential, evaluating potential acquisitions and dispositions and in our financial and operating decision-making process, including for compensation purposes.

Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with accounting principles generally accepted in the United States. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is included in this news release.

Safe Harbor Statement

This press release contains certain statements that are "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "may," "hope," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "continue," and other expressions, which are predictions of or indicate future events and trends and which do not relate to historical matters, identify forward-looking statements, although not all forward-looking statements are accompanied by such words. We believe that it is important to communicate our future expectations to our stockholders, and we, therefore, make forward-looking statements in reliance upon the safe harbor provisions of the Act. However, there may be events in the future that we are not able to accurately predict or control and our actual results may differ materially from the expectations we describe in our forward-looking statements. Forward-looking statements, including statements about outlook for the fourth quarter, the expected and potential direct or indirect impacts of the COVID-19 pandemic on our business, the realization of cost reductions from restructuring activities and expected synergies, the number of new product launches and future cash flows from operating activities, involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the duration and severity of the COVID-19 pandemic and its impact on the global economy; changes in the price of and demand for oil and gas in both domestic and international markets; any adverse changes in governmental policies; variability of raw material and component pricing; changes in our suppliers' performance; fluctuations in foreign currency exchange rates; changes in tariffs or other taxes related to doing business internationally; our ability to hire and retain key personnel; our ability to operate our manufacturing facilities at efficient levels including our ability to prevent cost overruns and reduce costs; our ability to generate increased cash by reducing our working capital; our prevention of the accumulation of excess inventory; our ability to successfully implement our divestiture; restructuring or simplification strategies; fluctuations in interest rates; our ability to successfully defend product liability actions; as well as the uncertainty associated with the current worldwide economic conditions and the continuing impact on economic and financial conditions in the United States and around the world, including as a result of COVID-19, natural disasters, terrorist attacks and other similar matters. We advise you to read further about these and other risk factors set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A, "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2019, which is filed with the Securities and Exchange Commission ("SEC") and is available on the SEC's website at www.sec.gov. 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 is one of the world's leading providers of mission critical flow control products and services for the Industrial and Aerospace & Defense markets. The Company has a product portfolio of market-leading brands serving its customers' most demanding applications. CIRCOR markets its solutions directly and through various sales partners to more than 14,000 customers in approximately 100 countries. The Company has a global presence with approximately 3,100 employees and is headquartered in Burlington, Massachusetts. For more information, visit the Company's investor relations website at http://investors.circor.com.

CIRCOR INTERNATIONAL, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data) (unaudited)

Three Months Ended Twelve Months Ended

Q4 2020 Q4 2019 Q4 2020 Q4 2019



Net revenues $ 208,351 $ 242,638 $ 773,271 $ 964,313

Cost of revenues 140,939 164,634 530,844 655,504

Gross profit 67,412 78,004 242,427 308,809

Selling, generaland administrative 56,046 58,029 220,994 248,256 expenses

Goodwill - - 116,182 - impairment charge

Special andrestructuring 1,444 2,979 (34,303) 22,872 charges(recoveries), net

Operating income, 9,922 16,996 (60,446) 37,681 (loss)

Other expense (income)

Interest expense, 8,520 10,763 34,219 48,609 net

Other (income) (758) 1,919 (529) (836) expense, net

Total other 7,762 12,682 33,690 47,773 expense, net

Income (loss) fromcontinuing 2,160 4,314 (94,136) (10,092) operations beforeincome taxes

Provision for(benefit from) 15,299 1,163 56,222 14,676 income taxes

(Loss) Income fromcontinuing (13,139) 3,151 (150,358) (24,768) operations, net oftax

(Loss) Income fromdiscontinued (795) (1,595) (35,140) (109,167) operations, net oftax

Net (Loss) income $ (13,934) $ 1,556 $ (185,498) $ (133,935)



Basic (loss)income per common share:

Basic fromcontinuing $ (0.66) $ 0.16 $ (7.52) $ (1.24) operations

Basic fromdiscontinued $ (0.04) $ (0.08) $ (1.76) $ (5.48) operations

Net (loss) income $ (0.70) $ 0.08 $ (9.28) $ (6.73)

Diluted income(loss) per common share:

Diluted fromcontinuing $ (0.66) $ 0.16 $ (7.52) $ (1.24) operations

Diluted fromdiscontinued $ (0.04) $ (0.08) $ (1.76) $ (5.48) operations

Net (loss) income $ (0.70) $ 0.08 $ (9.28) $ (6.73)



Weighted averagenumber of common sharesoutstanding:

Basic 20,002 19,920 19,982 19,903

Diluted 20,002 20,148 19,982 19,903

CIRCOR INTERNATIONAL, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands) (unaudited)

Twelve Months Ended

December 31, 2020

December 31, 2019

OPERATING ACTIVITIES

Net loss

$

(185,498)

$

(133,935)

Loss from discontinued operations, net of income taxes

(35,140)

(109,167)

Loss from continuing operations

(150,358)

(24,768)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation

20,385

22,045

Amortization

43,662

47,591

Provision for bad debt expense

6,099

617

Write down of inventory

3,618

366

Compensation expense for share-based plans

5,488

5,418

Amortization of debt issuance costs

7,460

4,622

Deferred tax provision

51,319

(3,440)

Loss on sale or write-down of property, plant and equipment

-

(1,793)

Goodwill impairment charge

116,182

(Gain) loss on sale of businesses

(54,429)

3,615

Changes in operating assets and liabilities, net of effects of acquisition and disposition:

Trade accounts receivable

23,506

24,339

Inventories

5,780

(9,557)

Prepaid expenses and other assets

(34,824)

7,360

Accounts payable, accrued expenses and other liabilities

(52,051)

(34,168)

Net cash (used in) provided by continuing operating activities

(8,163)

42,247

Net cash used in discontinued operating activities

(14,561)

(26,334)

Net cash used in operating activities

(22,724)

15,913

INVESTING ACTIVITIES

Additions to property, plant and equipment

(12,222)

(13,855)

Proceeds from sale of property, plant and equipment

(322)

6,172

Proceeds from the sale of business

165,540

162,591

Proceeds from beneficial interest of factored receivables

2,957

861

Net cash provided by continuing investment activities

155,953

155,769

Net cash used in discontinued investing activities

(11,658)

(2,733)

Net cash provided by investing activities

144,295

153,036

FINANCING ACTIVITIES

Proceeds from long-term debt

219,000

281,600

Payments of long-term debt

(352,916)

(434,797)

Proceeds from the exercise of stock options

118

253

Net cash used in continuing financing activities

(133,798)

(152,944)

Net cash used in financing activities

(133,798)

(152,944)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

4,195

197

(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

(8,032)

16,202

Cash, cash equivalents, and restricted cash at beginning of period

85,727

69,525

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD

$

77,695

$

85,727

CIRCOR INTERNATIONAL, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands) (unaudited)

Twelve Months Ended

December 31, December 31, 2020 2019

OPERATING ACTIVITIES

Net loss $ (185,498) $ (133,935)

Loss from discontinued operations, net of (35,140) (109,167) income taxes

Loss from continuing operations (150,358) (24,768)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation 20,385 22,045

Amortization 43,662 47,591

Provision for bad debt expense 6,099 617

Write down of inventory 3,618 366

Compensation expense for share-based plans 5,488 5,418

Amortization of debt issuance costs 7,460 4,622

Deferred tax provision 51,319 (3,440)

Loss on sale or write-down of property, plant - (1,793) and equipment

Goodwill impairment charge 116,182

(Gain) loss on sale of businesses (54,429) 3,615

Changes in operating assets and liabilities, net of effects of acquisition and disposition:

Trade accounts receivable 23,506 24,339

Inventories 5,780 (9,557)

Prepaid expenses and other assets (34,824) 7,360

Accounts payable, accrued expenses and other (52,051) (34,168) liabilities

Net cash (used in) provided by continuing (8,163) 42,247 operating activities

Net cash used in discontinued operating (14,561) (26,334) activities

Net cash used in operating activities (22,724) 15,913

INVESTING ACTIVITIES

Additions to property, plant and equipment (12,222) (13,855)

Proceeds from sale of property, plant and (322) 6,172 equipment

Proceeds from the sale of business 165,540 162,591

Proceeds from beneficial interest of factored 2,957 861 receivables

Net cash provided by continuing investment 155,953 155,769 activities

Net cash used in discontinued investing (11,658) (2,733) activities

Net cash provided by investing activities 144,295 153,036

FINANCING ACTIVITIES

Proceeds from long-term debt 219,000 281,600

Payments of long-term debt (352,916) (434,797)

Proceeds from the exercise of stock options 118 253

Net cash used in continuing financing (133,798) (152,944) activities

Net cash used in financing activities (133,798) (152,944)

Effect of exchange rate changes on cash, cash 4,195 197 equivalents and restricted cash

(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, (8,032) 16,202 AND RESTRICTED CASH

Cash, cash equivalents, and restricted cash at 85,727 69,525 beginning of period

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT $ 77,695 $ 85,727 END OF PERIOD

CIRCOR INTERNATIONAL, INC.

Condensed Consolidated Balance Sheets

(in thousands) (unaudited)

December 31, 2020

December 31, 2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

76,452

$

84,531

Trade accounts receivable, less allowance for doubtful accounts of $9,035 and $3,086 at December 31, 2020 and December 31, 2019, respectively

102,730

125,422

Inventories

129,084

137,309

Prepaid expenses and other current assets

93,770

66,664

Assets held for sale

5,073

161,193

Total Current Assets

407,109

575,119

PROPERTY, PLANT AND EQUIPMENT, NET

168,763

172,179

OTHER ASSETS:

Goodwill

158,944

271,893

Intangibles, net

353,595

385,542

Deferred income taxes

3,990

30,852

Other assets

41,881

35,360

TOTAL ASSETS

$

1,134,282

$

1,470,945

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

61,236

$

79,399

Accrued expenses and other current liabilities

76,168

94,169

Accrued compensation and benefits

28,332

19,518

Liabilities held for sale

-

43,289

Total Current Liabilities

165,736

236,375

LONG-TERM DEBT

507,888

636,297

DEFERRED INCOME TAXES

32,190

21,425

PENSION LIABILITY, NET

163,642

146,801

OTHER NON-CURRENT LIABILITIES

58,785

38,636

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding

-

-

Common stock, $0.01 par value; 29,000,000 shares authorized; 21,373,813 and 21,284,850 outstanding at December 31, 2020 and December 31, 2019 respectively

214

213

Additional paid-in capital

452,728

446,657

(Accumulated deficit) retained earnings

(86,461)

99,280

Common treasury stock, at cost (1,372,488 shares at December 31, 2020 and December 31, 2019)

(74,472)

(74,472)

Accumulated other comprehensive loss, net of tax

(85,968)

(80,267)

Total Shareholders' Equity

206,041

391,411

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,134,282

$

1,470,945

CIRCOR INTERNATIONAL, INC.

Condensed Consolidated Balance Sheets

(in thousands) (unaudited)

December 31, December 31, 2020 2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 76,452 $ 84,531

Trade accounts receivable, less allowance fordoubtful accounts of 102,730 125,422 $9,035 and $3,086 at December 31, 2020 and December 31, 2019, respectively

Inventories 129,084 137,309

Prepaid expenses and other current assets 93,770 66,664

Assets held for sale 5,073 161,193

Total Current Assets 407,109 575,119

PROPERTY, PLANT AND EQUIPMENT, NET 168,763 172,179

OTHER ASSETS:

Goodwill 158,944 271,893

Intangibles, net 353,595 385,542

Deferred income taxes 3,990 30,852

Other assets 41,881 35,360

TOTAL ASSETS $ 1,134,282 $ 1,470,945

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable $ 61,236 $ 79,399

Accrued expenses and other current liabilities 76,168 94,169

Accrued compensation and benefits 28,332 19,518

Liabilities held for sale - 43,289

Total Current Liabilities 165,736 236,375

LONG-TERM DEBT 507,888 636,297

DEFERRED INCOME TAXES 32,190 21,425

PENSION LIABILITY, NET 163,642 146,801

OTHER NON-CURRENT LIABILITIES 58,785 38,636

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

Preferred stock, $0.01 par value; 1,000,000shares authorized; no - - shares issued and outstanding

Common stock, $0.01 par value; 29,000,000 sharesauthorized;21,373,813 and 21,284,850 outstanding at December 214 213 31, 2020 andDecember 31, 2019 respectively

Additional paid-in capital 452,728 446,657

(Accumulated deficit) retained earnings (86,461) 99,280

Common treasury stock, at cost (1,372,488 sharesat December 31, (74,472) (74,472) 2020 and December 31, 2019)

Accumulated other comprehensive loss, net of tax (85,968) (80,267)

Total Shareholders' Equity 206,041 391,411

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,134,282 $ 1,470,945

CIRCOR INTERNATIONAL, INC.

Summary of Orders and Backlog

(in millions) (unaudited)

Three Months Ended

Twelve Months Ended

Q4 2020

Q4 2019

Q4 2020

Q4 2019

ORDERS (1)

Aerospace & Defense

$

46.8

$

68.5

$

254.5

$

313.9

Industrial

121.7

168.1

481.6

663.6

Total Orders

$

168.5

$

236.6

$

736.2

$

977.5

Q4 2020

Q4 2019

BACKLOG (2)

Aerospace & Defense

$

182.1

$

194.5

Industrial

197.2

226.2

Total Backlog

$

379.3

$

420.7

Note 1: Orders do not include the foreign exchange impact due to the re-measurement of customer backlog amounts denominated in foreign currencies. Orders for the twelve months ended December 31, 2020 include orders from businesses divested prior to December 31, 2020 of $4.5 million. Orders for the three months ended December 31, 2019 include orders from businesses divested of $18.0 million ($95.2 million for the twelve months ended December 31, 2019). Divested businesses are Reliability Services, Spence/Nicholson and Instrumentation & Sampling, all in the Industrial segment.

Note 2: Backlog includes unshipped customer orders for which revenue has not been recognized. Backlog at Q4 2019 includes $8.6 million for Industrial related to divested businesses.

CIRCOR INTERNATIONAL, INC.

Summary of Orders and Backlog

(in millions) (unaudited)

Three Months Ended Twelve Months Ended

Q4 2020 Q4 2019 Q4 2020 Q4 2019



ORDERS (1)

Aerospace & Defense $ 46.8 $ 68.5 $ 254.5 $ 313.9

Industrial 121.7 168.1 481.6 663.6

Total Orders $ 168.5 $ 236.6 $ 736.2 $ 977.5





Q4 2020 Q4 2019

BACKLOG (2)

Aerospace & Defense $ 182.1 $ 194.5

Industrial 197.2 226.2

Total Backlog $ 379.3 $ 420.7



Note 1: Orders do not include the foreign exchange impact due to there-measurement of customer backlog amounts denominated in foreign currencies.Orders for the twelve months ended December 31, 2020 include orders frombusinesses divested prior to December 31, 2020 of $4.5 million. Orders for thethree months ended December 31, 2019 include orders from businesses divested of$18.0 million ($95.2 million for the twelve months ended December 31, 2019).Divested businesses are Reliability Services, Spence/Nicholson andInstrumentation & Sampling, all in the Industrial segment.



Note 2: Backlog includes unshipped customer orders for which revenue has notbeen recognized. Backlog at Q4 2019 includes $8.6 million for Industrialrelated to divested businesses.

CIRCOR INTERNATIONAL, INC.

Segment Information

(in thousands, except percentages)

UNAUDITED

2019

2020

As reported

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

ORDERS

Aerospace & Defense

$

88,107

$

93,405

$

63,968

$

68,459

$

313,939

$

72,031

$

76,616

$

59,105

$

46,796

$

254,548

Industrial

171,834

164,642

158,986

168,091

663,553

136,443

116,023

107,453

121,690

481,609

Total

$

259,941

$

258,047

$

222,954

$

236,550

$

977,492

$

208,474

$

192,639

$

166,558

$

168,486

$

736,157

NET REVENUES

Aerospace & Defense

$

61,240

$

64,694

$

67,621

$

79,070

$

272,625

$

65,493

$

62,241

$

62,249

$

77,839

$

267,822

Industrial

177,615

181,074

169,431

163,568

691,688

126,720

123,825

124,391

130,513

505,449

Total

$

238,855

$

245,768

$

237,052

$

242,638

$

964,313

$

192,213

$

186,066

$

186,640

$

208,352

$

773,271

SEGMENT OPERATING INCOME

Aerospace & Defense

$

9,374

$

10,443

$

13,564

$

19,099

$

52,480

$

12,494

$

13,142

$

14,782

$

18,675

$

59,093

Industrial

22,581

26,174

21,278

20,757

90,790

5,169

12,406

9,807

12,441

39,823

Corporate expenses

(8,522)

(8,028)

(9,248)

(7,671)

(33,469)

(6,588)

(9,664)

(7,244)

(7,789)

(31,285)

Total

$

23,433

$

28,589

$

25,594

$

32,185

$

109,801

$

11,075

$

15,884

$

17,345

$

23,327

$

67,631

SEGMENT OPERATING MARGIN %

Aerospace & Defense

15.3%

16.1%

20.1%

24.2%

19.2%

19.1%

21.1%

23.7%

24.0%

22.1%

Industrial

12.7%

14.5%

12.6%

12.7%

13.1%

4.1%

10.0%

7.9%

9.5%

7.9%

Total

9.8%

11.6%

10.8%

13.3%

11.4%

5.8%

8.5%

9.3%

11.2%

8.7%

2019

2020

Results of divested businesses (1)

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

ORDERS - Industrial

$

30,611

$

24,448

$

22,090

$

18,047

$

95,196

$

4,449

$

-

$

-

$

-

$

4,449

NET REVENUES - Industrial

$

29,787

$

26,101

$

20,697

$

18,602

$

95,187

$

4,900

$

-

$

-

$

-

$

4,900

SEGMENT OP. INC. -Industrial

$

6,217

$

5,229

$

2,677

$

3,166

$

17,289

$

-

$

-

$

-

$

-

$

-

CIRCOR INTERNATIONAL, INC.

Segment Information (in thousands, except percentages)

UNAUDITED

2019 2020

As reported 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL

ORDERS

Aerospace & $ 88,107 $ 93,405 $ 63,968 $ 68,459 $ 313,939 $ 72,031 $ 76,616 $ 59,105 $ 46,796 $ 254,548Defense

Industrial 171,834 164,642 158,986 168,091 663,553 136,443 116,023 107,453 121,690 481,609

Total $ 259,941 $ 258,047 $ 222,954 $ 236,550 $ 977,492 $ 208,474 $ 192,639 $ 166,558 $ 168,486 $ 736,157



NET REVENUES

Aerospace & $ 61,240 $ 64,694 $ 67,621 $ 79,070 $ 272,625 $ 65,493 $ 62,241 $ 62,249 $ 77,839 $ 267,822Defense

Industrial 177,615 181,074 169,431 163,568 691,688 126,720 123,825 124,391 130,513 505,449

Total $ 238,855 $ 245,768 $ 237,052 $ 242,638 $ 964,313 $ 192,213 $ 186,066 $ 186,640 $ 208,352 $ 773,271



SEGMENT OPERATING INCOME

Aerospace & $ 9,374 $ 10,443 $ 13,564 $ 19,099 $ 52,480 $ 12,494 $ 13,142 $ 14,782 $ 18,675 $ 59,093Defense

Industrial 22,581 26,174 21,278 20,757 90,790 5,169 12,406 9,807 12,441 39,823

Corporate (8,522) (8,028) (9,248) (7,671) (33,469) (6,588) (9,664) (7,244) (7,789) (31,285)expenses

Total $ 23,433 $ 28,589 $ 25,594 $ 32,185 $ 109,801 $ 11,075 $ 15,884 $ 17,345 $ 23,327 $ 67,631



SEGMENTOPERATING MARGIN %

Aerospace & 15.3% 16.1% 20.1% 24.2% 19.2% 19.1% 21.1% 23.7% 24.0% 22.1%Defense

Industrial 12.7% 14.5% 12.6% 12.7% 13.1% 4.1% 10.0% 7.9% 9.5% 7.9%

Total 9.8% 11.6% 10.8% 13.3% 11.4% 5.8% 8.5% 9.3% 11.2% 8.7%



2019 2020

Results ofdivested 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL businesses (1)

ORDERS - $ 30,611 $ 24,448 $ 22,090 $ 18,047 $ 95,196 $ 4,449 $ - $ - $ - $ 4,449Industrial

NET REVENUES - $ 29,787 $ 26,101 $ 20,697 $ 18,602 $ 95,187 $ 4,900 $ - $ - $ - $ 4,900Industrial

SEGMENT OP. INC. $ 6,217 $ 5,229 $ 2,677 $ 3,166 $ 17,289 $ - $ - $ - $ - $ --Industrial

CIRCOR INTERNATIONAL, INC.

Supplemental Information Regarding Divested Businesses

(in thousands, except percentages) (unaudited)

2019

2020

Results excluding divested businesses

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

ORDERS

Aerospace & Defense

$88,107

$93,405

$63,968

$68,459

$313,939

$72,031

$76,616

$59,105

$46,796

$254,548

Industrial

141,223

140,194

136,896

150,044

568,357

131,994

116,023

107,453

121,690

477,160

Total

$229,330

$233,599

$200,864

$218,503

$882,296

$204,025

$192,639

$166,558

$168,486

$731,708

NET REVENUES

Aerospace & Defense

$61,240

$64,694

$67,621

$79,070

$272,625

$65,493

$62,241

$62,249

$77,839

$267,822

Industrial

147,828

154,973

148,734

144,966

596,501

121,820

123,825

124,391

130,513

500,549

Total

$209,068

$219,667

$216,355

$224,036

$869,126

$187,313

$186,066

$186,640

$208,352

$768,371

SEGMENT OPERATING INCOME

Aerospace & Defense

$9,374

$10,443

$13,564

$19,099

$52,480

$12,494

$13,142

$14,782

$18,675

$59,093

Industrial

16,364

20,945

18,601

17,591

73,501

5,169

12,406

9,807

12,441

39,823

Corporate expenses

(8,522)

(8,028)

(9,248)

(7,671)

(33,469)

(6,588)

(9,664)

(7,244)

(7,789)

(31,285)

Total

$17,216

$23,360

$22,917

$29,019

$92,512

$11,075

$15,884

$17,345

$23,327

$67,631

SEGMENT OPERATING MARGIN %

Aerospace & Defense

15.3%

16.1%

20.1%

24.2%

19.2%

19.1%

21.1%

23.7%

24.0%

22.1%

Industrial

11.1%

13.5%

12.5%

12.1%

12.3%

4.2%

10.0%

7.9%

9.5%

8.0%

Total

8.2%

10.6%

10.6%

13.0%

10.6%

5.9%

8.5%

9.3%

11.2%

8.8%

(1) Divested businesses are related to the Industrial Segment and include Reliability Services, Spence/Nicholson and Instrumentation & Sampling. Engineered Valves and Distributed Valves are discontinued operations and not reflected in the As Reported figures in accordance with US GAAP.

CIRCOR INTERNATIONAL, INC.

Supplemental Information Regarding Divested Businesses

(in thousands, except percentages) (unaudited)

2019 2020

Resultsexcluding 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTALdivestedbusinesses

ORDERS

Aerospace & $88,107 $93,405 $63,968 $68,459 $313,939 $72,031 $76,616 $59,105 $46,796 $254,548Defense

Industrial 141,223 140,194 136,896 150,044 568,357 131,994 116,023 107,453 121,690 477,160

Total $229,330 $233,599 $200,864 $218,503 $882,296 $204,025 $192,639 $166,558 $168,486 $731,708



NET REVENUES

Aerospace & $61,240 $64,694 $67,621 $79,070 $272,625 $65,493 $62,241 $62,249 $77,839 $267,822Defense

Industrial 147,828 154,973 148,734 144,966 596,501 121,820 123,825 124,391 130,513 500,549

Total $209,068 $219,667 $216,355 $224,036 $869,126 $187,313 $186,066 $186,640 $208,352 $768,371



SEGMENTOPERATING INCOME

Aerospace & $9,374 $10,443 $13,564 $19,099 $52,480 $12,494 $13,142 $14,782 $18,675 $59,093Defense

Industrial 16,364 20,945 18,601 17,591 73,501 5,169 12,406 9,807 12,441 39,823

Corporate (8,522) (8,028) (9,248) (7,671) (33,469) (6,588) (9,664) (7,244) (7,789) (31,285)expenses

Total $17,216 $23,360 $22,917 $29,019 $92,512 $11,075 $15,884 $17,345 $23,327 $67,631



SEGMENTOPERATING MARGIN %

Aerospace & 15.3% 16.1% 20.1% 24.2% 19.2% 19.1% 21.1% 23.7% 24.0% 22.1%Defense

Industrial 11.1% 13.5% 12.5% 12.1% 12.3% 4.2% 10.0% 7.9% 9.5% 8.0%

Total 8.2% 10.6% 10.6% 13.0% 10.6% 5.9% 8.5% 9.3% 11.2% 8.8%



(1) Divested businesses are related to the Industrial Segment and includeReliability Services, Spence/Nicholson and Instrumentation & Sampling.Engineered Valves and Distributed Valves are discontinued operations and notreflected in the As Reported figures in accordance with US GAAP.





CIRCOR INTERNATIONAL, INC.

Reconciliation of Key Performance Measures to Commonly Used Generally Accepted Accounting Principle Terms

(in thousands, except percentages) (unaudited)

2019

2020

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

Net Cash (Used In) Provided By Operating Activities

$(22,378)

$12,339

$9,128

$16,822

$15,913

$(23,947)

$(24,883)

$2,465

$23,641

$(22,724)

LESS

Capital expenditures, net of sale proceeds (a)

3,689

2,995

(963)

(1,535)

4,186

3,412

3,527

2,330

3,275

12,544

FREE CASH FLOW

$(26,067)

$9,344

$10,091

$18,357

$11,727

$(27,359)

$(28,410)

$135

$20,366

$(35,268)

Gross Debt

$753,950

$748,250

$659,100

$653,850

$653,850

$602,288

$592,038

$540,463

$519,938

$519,938

Less: Cash & Cash equivalents

73,619

76,082

69,225

84,531

84,531

170,861

125,421

72,772

76,452

76,452

GROSS DEBT, NET OF CASH

$680,331

$672,168

$589,875

$569,319

$569,319

$431,427

$466,617

$467,691

$443,486

$443,486

TOTAL SHAREHOLDERS' EQUITY

$516,177

$494,899

$375,388

$391,411

$391,411

$290,845

$273,351

$220,814

$206,041

$206,041

GROSS DEBT AS % OF EQUITY

146%

151%

176%

167%

167%

207%

217%

245%

252%

252%

GROSS DEBT, NET OF CASH AS % OF EQUITY

132%

136%

157%

145%

145%

148%

171%

212%

215%

215%

(a) includes capital expenditures, net of sales proceeds of discontinued operations

CIRCOR INTERNATIONAL, INC.

Reconciliation of Key Performance Measures to Commonly Used Generally AcceptedAccounting Principle Terms

(in thousands, except percentages) (unaudited)

2019 2020

1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL



Net Cash(Used In) $ $ $ $Provided By (22,378) $12,339 $9,128 $16,822 $15,913 (23,947) (24,883) $2,465 $23,641 (22,724)OperatingActivities

LESS

Capitalexpenditures, 3,689 2,995 (963) (1,535) 4,186 3,412 3,527 2,330 3,275 12,544net of sale proceeds (a)

FREE CASH $ $9,344 $10,091 $18,357 $11,727 $ $ $135 $20,366 $FLOW (26,067) (27,359) (28,410) (35,268)





Gross Debt $753,950 $748,250 $659,100 $653,850 $653,850 $602,288 $592,038 $540,463 $519,938 $519,938

Less: Cash &Cash 73,619 76,082 69,225 84,531 84,531 170,861 125,421 72,772 76,452 76,452equivalents

GROSS DEBT,NET $680,331 $672,168 $589,875 $569,319 $569,319 $431,427 $466,617 $467,691 $443,486 $443,486OF CASH



TOTALSHAREHOLDERS' $516,177 $494,899 $375,388 $391,411 $391,411 $290,845 $273,351 $220,814 $206,041 $206,041EQUITY



GROSS DEBT AS% 146% 151% 176% 167% 167% 207% 217% 245% 252% 252%OF EQUITY

GROSS DEBT,NET 132% 136% 157% 145% 145% 148% 171% 212% 215% 215%OF CASH AS % OF EQUITY



(a) includes capital expenditures, net of sales proceeds of discontinuedoperations

CIRCOR INTERNATIONAL, INC.

Reconciliation of Key Performance Measures to Commonly Used Generally Accepted Accounting Principle Terms

(in thousands, except percentages) (unaudited)

2019

2020

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

NET (LOSS) INCOME

$

(4,633)

$

(18,520)

$

(112,338)

$

1,555

$

(133,935)

$

(78,948)

$

(34,092)

$

(58,524)

$

(13,934)

$

(185,498)

LESS:

Restructuring related inventory charges

325

-

(1,145)

-

(820)

(602)

-

351

-

(251)

Restructuring charges, net

358

299

5,038

(509)

5,186

2,883

588

502

972

4,945

Acquisition amortization

12,077

11,247

11,202

11,189

45,715

10,218

10,681

10,625

10,939

42,463

Acquisition depreciation

1,123

1,106

1,102

1,021

4,352

974

980

1,011

1,021

3,986

Special (recoveries) charges, net

(8,200)

3,917

18,481

3,488

17,686

(45,175)

5,019

436

473

(39,247)

Goodwill Impairment charge

-

-

-

-

-

116,182

-

-

-

116,182

Income tax impact

3,625

(2,266)

5,533

(1,752)

5,140

7,704

(22,549)

53,240

13,125

51,521

Net loss (income) from discontinued operations

5,728

17,156

84,688

1,595

109,167

(9,162)

43,848

(341)

795

35,140

ADJUSTED NET INCOME

$

10,403

$

12,939

$

12,561

$

16,587

$

52,491

$

4,074

$

4,475

$

7,300

$

13,390

$

29,240

(LOSS) EARNINGS PER COMMON SHARE (Diluted)

$

(0.23)

$

(0.93)

$

(5.64)

$

0.08

$

(6.73)

$

(3.96)

$

(1.68)

$

(2.93)

$

(0.70)

$

(9.28)

LESS:

Restructuring related inventory charges

0.02

-

(0.06)

-

(0.04)

(0.03)

-

0.02

-

(0.01)

Restructuring charges, net

0.02

0.02

0.25

(0.03)

0.26

0.14

0.03

0.02

0.05

0.25

Acquisition amortization

0.61

0.57

0.56

0.56

2.30

0.51

0.53

0.53

0.55

2.13

Acquisition depreciation

0.06

0.06

0.06

0.05

0.22

0.05

0.05

0.05

0.05

0.20

Special (recoveries) charges, net

(0.41)

0.20

0.93

0.18

0.89

(2.27)

0.25

0.02

0.02

(1.96)

Impairment charge

-

-

-

-

-

5.83

-

-

-

5.81

Income tax impact

0.18

(0.12)

0.28

(0.10)

0.24

0.39

(1.11)

2.66

0.66

2.58

Earnings (Loss) per share from discontinued operations

0.29

0.86

4.25

0.08

5.48

(0.46)

2.16

(0.02)

0.04

1.76

ADJUSTED EARNINGS PER SHARE (Diluted)

$

0.52

$

0.65

$

0.63

$

0.82

$

2.62

$

0.20

$

0.22

$

0.36

$

0.66

$

1.43

CIRCOR INTERNATIONAL, INC.

Reconciliation of Key Performance Measures to Commonly Used Generally AcceptedAccounting Principle Terms

(in thousands, except percentages) (unaudited)

2019 2020

1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL

NET (LOSS) INCOME $ (4,633) $ (18,520) $ (112,338) $ 1,555 $ (133,935) $ (78,948) $ (34,092) $ (58,524) $ (13,934) $ (185,498)

LESS:

Restructuring related 325 - (1,145) - (820) (602) - 351 - (251) inventory charges

Restructuring 358 299 5,038 (509) 5,186 2,883 588 502 972 4,945 charges, net

Acquisition 12,077 11,247 11,202 11,189 45,715 10,218 10,681 10,625 10,939 42,463 amortization

Acquisition 1,123 1,106 1,102 1,021 4,352 974 980 1,011 1,021 3,986 depreciation

Special (recoveries) (8,200) 3,917 18,481 3,488 17,686 (45,175) 5,019 436 473 (39,247) charges, net

Goodwill Impairment - - - - - 116,182 - - - 116,182 charge

Income tax impact 3,625 (2,266) 5,533 (1,752) 5,140 7,704 (22,549) 53,240 13,125 51,521

Net loss (income)from discontinued 5,728 17,156 84,688 1,595 109,167 (9,162) 43,848 (341) 795 35,140 operations

ADJUSTED NET INCOME $ 10,403 $ 12,939 $ 12,561 $ 16,587 $ 52,491 $ 4,074 $ 4,475 $ 7,300 $ 13,390 $ 29,240



(LOSS) EARNINGSPER COMMON $ (0.23) $ (0.93) $ (5.64) $ 0.08 $ (6.73) $ (3.96) $ (1.68) $ (2.93) $ (0.70) $ (9.28) SHARE (Diluted)

LESS:

Restructuring related 0.02 - (0.06) - (0.04) (0.03) - 0.02 - (0.01) inventory charges

Restructuring 0.02 0.02 0.25 (0.03) 0.26 0.14 0.03 0.02 0.05 0.25 charges, net

Acquisition 0.61 0.57 0.56 0.56 2.30 0.51 0.53 0.53 0.55 2.13 amortization

Acquisition 0.06 0.06 0.06 0.05 0.22 0.05 0.05 0.05 0.05 0.20 depreciation

Special (recoveries) (0.41) 0.20 0.93 0.18 0.89 (2.27) 0.25 0.02 0.02 (1.96) charges, net

Impairment charge - - - - - 5.83 - - - 5.81

Income tax impact 0.18 (0.12) 0.28 (0.10) 0.24 0.39 (1.11) 2.66 0.66 2.58

Earnings (Loss) pershare from 0.29 0.86 4.25 0.08 5.48 (0.46) 2.16 (0.02) 0.04 1.76 discontinuedoperations

ADJUSTEDEARNINGS PER $ 0.52 $ 0.65 $ 0.63 $ 0.82 $ 2.62 $ 0.20 $ 0.22 $ 0.36 $ 0.66 $ 1.43 SHARE (Diluted)

CIRCOR INTERNATIONAL, INC.

Reconciliation of Key Performance Measures to Commonly Used Generally Accepted Accounting Principle Terms

(in thousands, except percentages) (unaudited)

2019

2020

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

NET (LOSS) INCOME

$

(4,633)

$

(18,520)

$

(112,338)

$

1,555

$

(133,935)

$

(78,948)

$

(34,092)

$

(58,524)

$

(13,934)

$

(185,498)

LESS:

Interest expense, net

13,094

12,947

11,804

10,763

48,609

9,011

8,486

8,202

8,520

34,219

Depreciation

5,499

5,568

5,551

5,427

22,045

5,121

4,958

4,802

5,504

20,385

Amortization

12,536

11,685

11,629

11,741

47,591

10,516

10,976

10,925

11,245

43,662

Provision for income taxes

5,709

284

7,490

1,193

14,676

8,374

(21,769)

54,318

15,299

56,222

Loss (income) from discontinued operations

5,728

17,156

84,688

1,595

109,167

(9,162)

43,847

(341)

795

35,140

EBITDA

$

37,933

$

29,121

$

8,825

$

32,274

$

108,152

$

(55,088)

$

12,406

$

19,383

$

27,429

$

4,130

LESS:

Restructuring related inventory charges (recoveries)

325

-

(1,145)

-

(820)

(602)

-

351

-

(251)

Restructuring charges (recoveries), net

358

299

5,038

(509)

5,186

2,883

588

502

972

4,945

Special (recoveries) charges, net

(8,200)

3,917

18,481

3,488

17,686

(45,175)

5,019

436

473

(39,247)

Goodwill impairment charge

-

-

-

-

-

116,182

-

-

-

116,182

ADJUSTED EBITDA

$

30,416

$

33,337

$

31,199

$

35,253

$

130,204

$

18,200

$

18,013

$

20,671

$

28,873

$

85,758

CIRCOR INTERNATIONAL, INC.

Reconciliation of Key Performance Measures to Commonly Used Generally AcceptedAccounting Principle Terms

(in thousands, except percentages) (unaudited)

2019 2020

1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL



NET (LOSS) INCOME $ (4,633) $ (18,520) $ (112,338) $ 1,555 $ (133,935) $ (78,948) $ (34,092) $ (58,524) $ (13,934) $ (185,498)

LESS:

Interest expense, net 13,094 12,947 11,804 10,763 48,609 9,011 8,486 8,202 8,520 34,219

Depreciation 5,499 5,568 5,551 5,427 22,045 5,121 4,958 4,802 5,504 20,385

Amortization 12,536 11,685 11,629 11,741 47,591 10,516 10,976 10,925 11,245 43,662

Provision for income 5,709 284 7,490 1,193 14,676 8,374 (21,769) 54,318 15,299 56,222 taxes

Loss (income) from 5,728 17,156 84,688 1,595 109,167 (9,162) 43,847 (341) 795 35,140 discontinued operations

EBITDA $ 37,933 $ 29,121 $ 8,825 $ 32,274 $ 108,152 $ (55,088) $ 12,406 $ 19,383 $ 27,429 $ 4,130

LESS:

Restructuring relatedinventory charges 325 - (1,145) - (820) (602) - 351 - (251) (recoveries)

Restructuringcharges (recoveries), 358 299 5,038 (509) 5,186 2,883 588 502 972 4,945 net

Special (recoveries) (8,200) 3,917 18,481 3,488 17,686 (45,175) 5,019 436 473 (39,247) charges, net

Goodwill - - - - - 116,182 - - - 116,182 impairment charge

ADJUSTED EBITDA $ 30,416 $ 33,337 $ 31,199 $ 35,253 $ 130,204 $ 18,200 $ 18,013 $ 20,671 $ 28,873 $ 85,758

CIRCOR INTERNATIONAL, INC.

Reconciliation of Key Performance Measures to Commonly Used Generally Accepted Accounting Principle Terms

(in thousands, except percentages) (unaudited)

2019

2020

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

GAAP OPERATING INCOME (LOSS)

$

17,750

$

12,020

$

(9,084)

$

16,996

$

37,682

$

(73,405)

$

(1,384)

$

4,420

$

9,923

$

(60,446)

LESS:

Restructuring related inventory charges (recoveries)

325

-

(1,145)

-

(820)

(602)

-

351

-

(251)

Amortization of inventory step-up

-

-

-

-

-

-

-

-

-

-

Restructuring charges (recoveries), net

358

299

5,038

(509)

5,186

2,883

588

502

972

4,945

Acquisition amortization

12,077

11,247

11,202

11,189

45,715

10,218

10,681

10,625

10,939

42,463

Acquisition depreciation

1,123

1,106

1,102

1,021

4,352

974

980

1,011

1,021

3,986

Special (recoveries) charges, net

(8,200)

3,917

18,481

3,488

17,686

(45,175)

5,019

436

473

(39,247)

Goodwill impairment charge

-

-

-

-

-

116,182

-

-

-

116,182

ADJUSTED OPERATING INCOME

$

23,433

$

28,589

$

25,594

$

32,185

$

109,801

$

11,075

$

15,884

$

17,345

$

23,327

$

67,631

GAAP OPERATING MARGIN

7.4

%

4.9

%

(3.8)

%

7.0

%

3.9

%

(38.2)

%

(0.7)

%

2.4

%

4.8

%

(7.8)

%

LESS:

Restructuring related inventory charges (recoveries)

0.1

%

0.0

%

(0.5)

%

0.0

%

(0.1)

%

(0.3)

%

0.0

%

0.2

%

0.0

%

0.0

%

Amortization of inventory step-up

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

Restructuring charges (recoveries), net

0.1

%

0.1

%

2.1

%

(0.2)

%

0.5

%

1.5

%

0.3

%

0.3

%

0.5

%

0.6

%

Acquisition amortization

5.1

%

4.6

%

4.7

%

4.6

%

4.7

%

5.3

%

5.7

%

5.7

%

5.3

%

5.5

%

Acquisition depreciation

0.5

%

0.5

%

0.5

%

0.4

%

0.5

%

0.5

%

0.5

%

0.5

%

0.5

%

0.5

%

Special (recoveries) charges, net

(3.4)

%

1.6

%

7.8

%

1.4

%

1.8

%

(23.5)

%

2.7

%

0.2

%

0.2

%

(5.1)

%

Goodwill impairment charge

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

60.4

%

0.0

%

0.0

%

0.0

%

15.0

%

ADJUSTED OPERATING MARGIN

9.8

%

11.6

%

10.8

%

13.3

%

11.4

%

5.8

%

8.5

%

9.3

%

11.2

%

8.7

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210304005237/en/

CONTACT: Alex Maki Vice President FP&A and Investor Relations CIRCOR International (781) 270-1200