Business Wire | Nov 12, 2021 06:30AM EST

CIRCOR Reports Third Quarter 2021 Results

Nov. 12, 2021

BURLINGTON, Mass.--(BUSINESS WIRE)--Nov. 12, 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 third quarter ended October 3, 2021.

Third Quarter 2021 Overview:

* Backlog of $435 million, up 15% YTD, driven by strong demand across Industrial end markets * Orders of $194M, up 16% reported and 15% organically Industrial orders of $140 million, up 30% reported and 28% organically Aerospace & Defense orders of $54 million, down (9)% reported and (10)% organically * Revenue of $191 million, up 2% reported and 1% organically, was adversely impacted by $(10) million due to global supply chain, logistics, and labor constraints late in the third quarter Industrial revenue of $129 million, up 4% reported and 3% organically Aerospace & Defense revenue of $61 million, down (1)% reported and (2)% organically * GAAP operating margin of 3.5%; Adjusted operating margin of 10.1%, up 80 bps * GAAP earnings per share of $0.06; Adjusted earnings per share of $0.50, up 39% * GAAP operating cash flow of $11 million; Free cash flow of $7 million, up $7 million

CIRCOR President and CEO Scott Buckhout said, "Our team delivered solid third quarter 2021 results with 15% organic orders growth, 80 basis points of margin expansion, and a 39% increase in adjusted earnings. While global supply chain constraints adversely impacted our 3Q results and 4Q outlook, we remain encouraged by robust demand for our Industrial products and strong positions on growing Aerospace & Defense programs."

Mr. Buckhout continued, "Despite the near term macro challenges, our focus remains on our long term strategic priorities. We plan to deliver 45 new products for our customers in 2021 that will drive future organic growth and margin expansion. In addition, our teams have accelerated price increases across product lines in order to mitigate the impact of higher inflation. And finally, we continue to use our free cash flow to pay down debt in order to achieve a net debt to adjusted EBITDA ratio of 2.0 to 2.5."

Mr. Buckhout concluded, "Our $435 million backlog positions us well for organic revenue, earnings, and free cash flow growth, and we continue to drive long-term value creation for employees, customers, and shareholders."

4Q'21 Guidance Update

In the fourth quarter of 2021, CIRCOR expects organic revenue to increase by 1 to 3% which reflects $(15) million of delayed revenue due to global supply chain, logistics, and labor challenges. Industrial revenue is expected to increase by 3 to 6% driven by aftermarket volume, and Aerospace & Defense revenue is expected to be down (5) to 0% with growth in both Commercial Aerospace and Defense aftermarket sales offset by lower large Defense program shipments. In addition, CIRCOR expects adjusted EPS of $0.60 to $0.65 and free cash flow conversion of 85 to 105% ($10 to $15 million).

2021 Guidance Update

For the full year of 2021, CIRCOR expects organic revenue to decrease by (2) to (0)% (previously 2 to 4%) which reflects $(25) million of delayed revenue due to global supply chain, logistics, and labor challenges. Reported revenue growth for 2021 is expected to be between (1) to 1%. Adjusted EPS is now expected to be of $1.69 to $1.74 (previously $2.10 to $2.30) driven by our lower revenue outlook and the impact of continued inflationary pressure. Finally, we expect adjusted net income to free cash flow conversion to be 15% to 25% as supply chain issues delay the completion of in-process projects and adversely impact the timing of customer collections.

Presentation slides that provide supporting information to this guidance and first-quarter 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.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results at 9:00 a.m. ET today, November 12, 2021. To listen to the live conference call and view the accompanying presentation slides, please visit "Webcasts & Presentations" in the "Investors" portion of CIRCOR's website. The live call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. Participants are encouraged to dial in to the call at least 15 minutes prior to the start time. The webcast will be archived on the Company's website for one year.

Selected Preliminary Consolidated Results

($ millions Q3 2021 Q3 2020 Change Q3 YTD Q3 YTD Changeexcept EPS) 2021 2020

Orders 193.7 166.6 16 % 630.6 567.7 11 %

Orders -excluding 193.7 166.6 16 % 630.6 563.2 12 %divestedbusinesses^1

Revenue $ 190.8 $ 186.6 2 % $ 561.8 $ 564.9 -1 %

Revenue -excluding 190.8 186.6 2 % 561.8 560.0 - %divestedbusinesses^1

GAAPoperating 6.7 4.4 51 % 2.1 (70.4) 103 %(loss) income

Adjustedoperating 19.3 17.3 11 % 46.3 44.3 5 %income^2

GAAP 110 1290operating 3.5 % 2.4 % bps 0.4 % (12.5) % bpsmargin

Adjustedoperating 10.1 % 9.3 % 80 bps 8.2 % 7.8 % 40 bpsmargin^2

Adjustedoperatingmargin ex 10.1 % 9.3 % 80 bps 8.2 % 7.9 % 30 bpsdivestitures^2

GAAP earnings(loss) per $ 0.06 $ (2.93) 102 % $ (1.07) $ (8.59) 88 %share(diluted)

Adjustedearnings per $ 0.50 $ 0.36 39 % $ 1.10 $ 0.78 41 %share(diluted)^2

Operating 11.4 2.5 362 % 4.7 (46.4) 110 %cash flow

Free cash 6.8 0.1 n/a (5.9) (55.6) 89 %flow^3

Segment Results

($ in Q3 2021 Q3 2020 Change Q3 YTD Q3 YTD Changemillions) 2021 2020

Aerospace & Defense

Orders $ 54.0 $ 59.1 -9 % $ 181.3 $ 207.8 -13 %

Revenue 61.5 62.2 -1 % 182.2 190.0 -4 %

Segmentoperating 14.9 14.8 1% 37.7 40.4 -7 %income

Segment -60operating 24.2 % 23.7 % 50 bps 20.7 % 21.3 % bpsmargin



Industrial

Orders $ 139.7 $ 107.5 30 % $ 449.3 $ 359.9 25 %

Orders -excluding 139.7 107.5 30 % 449.3 355.5 26 %divestedbusinesses^1

Revenue 129.3 124.4 4 % 379.5 374.9 1 %

Revenue -excluding 129.3 124.4 4 % 379.5 370.0 3 %divestedbusinesses^1

Segmentoperating 11.3 9.8 15 % 31.4 27.4 15 %income

Segmentoperating 8.7 % 7.9 % 80 bps 8.3 % 7.4 % 90 bpsmargin(adjusted)

* 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 Instrumentation & Sampling (all Industrial) which was sold during Q1 2020. * Adjusted consolidated and segment results for Q3 2021 exclude net income from discontinued operations of $2.5 million and net loss from non-cash acquisition-related intangible amortization, special and restructuring charges totaling $12.6 million. These charges include: (i) $11.8 million for non-cash acquisition-related intangible amortization and depreciation expense; and (ii) $0.8 million of other special and restructuring recoveries. Adjusted consolidated and segment results for Q3 2020 exclude net income from discontinued operations of $0.3 million and net loss from non-cash acquisition-related intangible amortization, special and restructuring charges totaling $12.9 million. These charges include: (i) $11.6 million for non-cash acquisition-related intangible amortization and depreciation expense; (ii) $0.8 million of professional fees and other costs associated with restructuring and cost reductions; and (iii) $0.5 million of other special and restructuring charges. It also excludes the Q3 2020 charge for valuation allowance against deferred tax assets by virtue of using an effective tax rate in the adjusted results which is a $53.3 million adjustment to taxes. * 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. 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. We exclude these costs because we do not believe they are indicative of our normal operating costs.

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 October 3, 2021 were completed on January 1, 2020 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 peers. 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, 2020, 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 STATEMENT OF OPERATIONS

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

Three Months Ended Nine Months Ended

October 3, September October 3, September 27, 2021 27, 2021 2020 2020



Net revenues $ 190,782 $ 186,640 $ 561,783 $ 564,920

Cost of revenues 130,027 130,630 385,061 389,905

Gross profit 60,755 56,010 176,722 175,015

Selling, general andadministrative 53,265 50,652 167,792 164,948 expenses

Goodwill impairment - - - 116,182 charge

Special andrestructuring charges 814 938 6,808 (35,747) (recoveries), net

Operating income 6,676 4,420 2,122 (70,368) (loss)

Other expense (income), net:

Interest expense, net 7,997 8,202 24,325 25,699

Other expense 134 765 (2,543) 229 (income), net

Total other expense, 8,131 8,967 21,782 25,928 net

Income (loss) fromcontinuing operations (1,455) (4,547) (19,660) (96,296) before income taxes

(Benefit from)provision for income (92) 54,318 3,268 40,923 taxes

Income (loss) fromcontinuing $ (1,363) $ (58,865) $ (22,928) $ (137,219) operations, net oftax

Income (loss) fromdiscontinued $ 2,510 $ 341 $ 1,393 $ (34,345) operations, net oftax

Net income (loss) $ 1,147 $ (58,524) $ (21,535) $ (171,564)



Basic income (loss) per common share:

Basic from continuing $ (0.07) $ (2.94) $ (1.14) $ (6.87) operations

Basic fromdiscontinued $ 0.12 $ 0.02 $ 0.07 $ (1.72) operations

Net income (loss) $ 0.06 $ (2.93) $ (1.07) $ (8.59)

Diluted income (loss) per common share:

Diluted from $ (0.07) $ (2.94) $ (1.14) $ (6.87) continuing operations

Diluted fromdiscontinued $ 0.12 $ 0.02 $ 0.07 $ (1.72) operations

Net income (loss) $ 0.06 $ (2.93) $ (1.07) $ (8.59)



Weighted averagenumber of common shares outstanding:

Basic 20,257 20,001 20,181 19,975

Diluted 20,257 20,001 20,181 19,975

CIRCOR INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

Nine Months Ended

October 3, 2021

September 27, 2020

OPERATING ACTIVITIES

Net loss

$

(21,535)

$

(171,564)

Income (loss) from discontinued operations, net of income taxes

1,393

(34,345)

Loss from continuing operations

(22,928)

(137,219)

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

Depreciation

17,505

14,881

Amortization

31,929

32,418

Change in provision for bad debt expense

(353)

7,219

Write down of inventory

1,201

2,386

Compensation expense for share-based plans

4,165

4,076

Amortization of debt issuance costs

3,032

6,463

Deferred tax provision

823

35,582

Goodwill impairment charge

-

116,182

Loss (gain) on sale of businesses

1,308

(54,253)

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

Trade accounts receivable

8,937

18,051

Inventories

(12,095)

(8,477)

Prepaid expenses and other assets

(32,680)

(39,184)

Accounts payable, accrued expenses and other liabilities

6,310

(30,468)

Net cash provided by (used in) continuing operating activities

7,154

(32,343)

Net cash provided by (used in) discontinued operating activities

(2,484)

(14,022)

Net cash provided (used in) operating activities

4,670

(46,365)

INVESTING ACTIVITIES

Additions to property, plant and equipment

(10,579)

(9,147)

Proceeds from sale of property, plant and equipment

2

(122)

Proceeds from the sale of business

9,993

166,210

Proceeds from beneficial interest of factored receivables

1,531

2,212

Net cash provided by continuing investment activities

947

159,153

Net cash used in discontinued investing activities

-

(11,338)

Net cash provided by investing activities

947

147,815

FINANCING ACTIVITIES

Proceeds from long-term debt

145,550

165,800

Payments of long-term debt

(148,450)

(279,191)

Proceeds from the exercise of stock options

151

117

Withholding tax payments on restricted and performance stock units converted

(4,154)

-

Net cash used in financing activities

(6,903)

(113,274)

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

(3,163)

29

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

(4,449)

(11,795)

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

77,696

85,727

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

$

73,247

$

73,932

CIRCOR INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

Nine Months Ended

October 3, September 27, 2021 2020

OPERATING ACTIVITIES

Net loss $ (21,535) $ (171,564)

Income (loss) from discontinued operations, net 1,393 (34,345) of income taxes

Loss from continuing operations (22,928) (137,219)

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

Depreciation 17,505 14,881

Amortization 31,929 32,418

Change in provision for bad debt expense (353) 7,219

Write down of inventory 1,201 2,386

Compensation expense for share-based plans 4,165 4,076

Amortization of debt issuance costs 3,032 6,463

Deferred tax provision 823 35,582

Goodwill impairment charge - 116,182

Loss (gain) on sale of businesses 1,308 (54,253)

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

Trade accounts receivable 8,937 18,051

Inventories (12,095) (8,477)

Prepaid expenses and other assets (32,680) (39,184)

Accounts payable, accrued expenses and other 6,310 (30,468) liabilities

Net cash provided by (used in) continuing 7,154 (32,343) operating activities

Net cash provided by (used in) discontinued (2,484) (14,022) operating activities

Net cash provided (used in) operating 4,670 (46,365) activities

INVESTING ACTIVITIES

Additions to property, plant and equipment (10,579) (9,147)

Proceeds from sale of property, plant and 2 (122) equipment

Proceeds from the sale of business 9,993 166,210

Proceeds from beneficial interest of factored 1,531 2,212 receivables

Net cash provided by continuing investment 947 159,153 activities

Net cash used in discontinued investing - (11,338) activities

Net cash provided by investing activities 947 147,815

FINANCING ACTIVITIES

Proceeds from long-term debt 145,550 165,800

Payments of long-term debt (148,450) (279,191)

Proceeds from the exercise of stock options 151 117

Withholding tax payments on restricted and (4,154) - performance stock units converted

Net cash used in financing activities (6,903) (113,274)

Effect of exchange rate changes on cash, cash (3,163) 29 equivalents and restricted cash

(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, (4,449) (11,795) AND RESTRICTED CASH

Cash, cash equivalents, and restricted cash at 77,696 85,727 beginning of period

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT $ 73,247 $ 73,932 END OF PERIOD

CIRCOR INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) (unaudited)

October 3, 2021

December 31, 2020

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

71,969

$

76,452

Trade accounts receivable, less allowance for doubtful accounts of $8,374 and $9,035 at October 3, 2021 and December 31, 2020, respectively

93,222

102,730

Inventories

132,242

129,084

Prepaid expenses and other current assets

118,783

93,226

Assets held for sale

-

5,073

Total Current Assets

416,216

406,565

PROPERTY, PLANT AND EQUIPMENT, NET

158,327

168,763

OTHER ASSETS:

Goodwill

155,739

158,944

Intangibles, net

315,452

353,595

Deferred income taxes

761

779

Other assets

43,780

41,882

TOTAL ASSETS

$

1,090,275

$

1,130,528

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

72,883

$

61,236

Accrued expenses and other current liabilities

74,357

75,624

Accrued compensation and benefits

32,454

28,332

Total Current Liabilities

179,694

165,192

LONG-TERM DEBT

507,093

507,888

DEFERRED INCOME TAXES

26,767

28,980

PENSION LIABILITY, NET

152,322

163,642

OTHER NON-CURRENT LIABILITIES

39,855

58,785

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; 21,627,259 and 21,373,813 issued at October 3, 2021 and December 31, 2020 respectively

217

214

Additional paid-in capital

453,761

452,728

(Accumulated deficit) retained earnings

(107,996)

(86,461)

Common treasury stock, at cost (1,372,488 shares at October 3, 2021 and December 31, 2020)

(74,472)

(74,472)

Accumulated other comprehensive loss, net of tax

(86,966)

(85,968)

Total Shareholders' Equity

184,544

206,041

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,090,275

$

1,130,528

CIRCOR INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) (unaudited)

October 3, December 31, 2021 2020

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 71,969 $ 76,452

Trade accounts receivable, less allowance fordoubtful accounts of $8,374 93,222 102,730 and $9,035 at October 3, 2021 and December 31,2020, respectively

Inventories 132,242 129,084

Prepaid expenses and other current assets 118,783 93,226

Assets held for sale - 5,073

Total Current Assets 416,216 406,565

PROPERTY, PLANT AND EQUIPMENT, NET 158,327 168,763

OTHER ASSETS:

Goodwill 155,739 158,944

Intangibles, net 315,452 353,595

Deferred income taxes 761 779

Other assets 43,780 41,882

TOTAL ASSETS $ 1,090,275 $ 1,130,528

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable $ 72,883 $ 61,236

Accrued expenses and other current liabilities 74,357 75,624

Accrued compensation and benefits 32,454 28,332

Total Current Liabilities 179,694 165,192

LONG-TERM DEBT 507,093 507,888

DEFERRED INCOME TAXES 26,767 28,980

PENSION LIABILITY, NET 152,322 163,642

OTHER NON-CURRENT LIABILITIES 39,855 58,785

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; 21,627,259 217 214 and 21,373,813 issued at October 3, 2021 andDecember 31, 2020 respectively

Additional paid-in capital 453,761 452,728

(Accumulated deficit) retained earnings (107,996) (86,461)

Common treasury stock, at cost (1,372,488 sharesat October 3, (74,472) (74,472) 2021 and December 31, 2020)

Accumulated other comprehensive loss, net of tax (86,966) (85,968)

Total Shareholders' Equity 184,544 206,041

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,090,275 $ 1,130,528

CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in millions) (unaudited)

Three Months Ended

Nine Months Ended

October 3, 2021

September 27, 2020

October 3, 2021

September 27, 2020

ORDERS (1)

Aerospace & Defense

$

54.0

$

59.1

$

181.3

$

207.8

Industrial

139.7

107.5

449.3

359.9

Total Orders

$

193.7

$

166.6

$

630.6

$

567.7

October 3, 2021

September 27, 2020

BACKLOG (2)

Aerospace & Defense

$

179.7

$

211.4

Industrial

254.9

204.0

Total Backlog

$

434.6

$

415.4

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 nine months ended September 27, 2020 include orders from businesses divested prior to September 27, 2020 of $4.4 million.

Note 2: Backlog includes unshipped customer orders for which revenue has not been recognized.

CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in millions) (unaudited)

Three Months Ended Nine Months Ended

October 3, September October 3, September 2021 27, 2021 27, 2020 2020



ORDERS (1)

Aerospace & Defense $ 54.0 $ 59.1 $ 181.3 $ 207.8

Industrial 139.7 107.5 449.3 359.9

Total Orders $ 193.7 $ 166.6 $ 630.6 $ 567.7





October 3, September 2021 27, 2020

BACKLOG (2)

Aerospace & Defense $ 179.7 $ 211.4

Industrial 254.9 204.0

Total Backlog $ 434.6 $ 415.4



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 nine months ended September 27, 2020 include orders from businesses divested prior to September 27, 2020 of $4.4 million.

Note 2: Backlog includes unshipped customer orders for which revenue has not been recognized.

CIRCOR INTERNATIONAL, INC.

SEGMENT INFORMATION

(in thousands, except percentages)

UNAUDITED

2020 2021

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

ORDERS

Aerospace & $ 72,031 $ 76,616 $ 59,105 $ 46,796 $ 254,548 $ 72,999 $ 54,243 $ 54,028 $ 181,270 Defense

Industrial 136,443 116,023 107,453 121,690 481,609 153,695 155,959 139,691 449,345

Total $ 208,474 $ 192,639 $ 166,558 $ 168,486 $ 736,157 $ 226,693 $ 210,203 $ 193,719 $ 630,615



NET REVENUES

Aerospace & $ 65,493 $ 62,241 $ 62,249 $ 77,839 $ 267,822 $ 60,001 $ 60,761 $ 61,484 $ 182,246 Defense

Industrial 126,720 123,825 124,391 130,513 505,449 120,654 129,585 129,298 379,537

Total $ 192,213 $ 186,066 $ 186,640 $ 208,352 $ 773,271 $ 180,655 $ 190,346 $ 190,782 $ 561,783



SEGMENT OPERATING INCOME

Aerospace & $ 12,494 $ 13,142 $ 14,782 $ 18,675 $ 59,093 $ 10,706 $ 12,095 $ 14,868 $ 37,668 Defense

Industrial 5,169 12,406 9,807 12,441 39,823 9,735 10,400 11,268 31,403

Corporate (6,588) (9,664) (7,244) (7,789) (31,285) (8,002) (7,850) (6,878) (22,726) expenses

Total $ 11,075 $ 15,884 $ 17,345 $ 23,327 $ 67,631 $ 12,439 $ 14,645 $ 19,258 $ 46,345



SEGMENT OPERATING MARGIN %

Aerospace & 19.1 % 21.1 % 23.7 % 24.0 % 22.1 % 17.8 % 19.9 % 24.2 % 20.7 %Defense

Industrial 4.1 % 10.0 % 7.9 % 9.5 % 7.9 % 8.1 % 8.0 % 8.7 % 8.3 %

Total 5.8 % 8.5 % 9.3 % 11.2 % 8.7 % 6.9 % 7.7 % 10.1 % 8.2 %



2020 2021

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

ORDERS - $ 4,449 $ - $ - $ - $ 4,449 $ - $ - $ - $ - Industrial

NET REVENUES - $ 4,900 $ - $ - $ - $ 4,900 $ - $ - $ - $ - Industrial

SEGMENT OP. INC. $ - $ - $ - $ - $ - $ - $ - $ - $ - -Industrial

(1) Divested businesses are related to the Industrial Segment and include Instrumentation & Sampling. 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 BUSINESS

(in thousands, except percentages) (unaudited)

2020 2021

Results excluding 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL 1ST QTR 2ND QTR 3RD QTR TOTAL divested businesses

ORDERS

Aerospace $72,031 $76,616 $59,105 $46,796 $254,548 $72,999 $54,243 $54,028 $181,270 & Defense

Industrial 131,994 116,023 107,453 121,690 477,160 153,695 155,959 139,691 449,345

Total $204,025 $192,639 $166,558 $168,486 $731,708 $226,693 $210,203 $193,719 $630,615



NET REVENUES

Aerospace $65,493 $62,241 $62,249 $77,839 $267,822 $60,001 $60,761 $61,484 $182,246 & Defense

Industrial 121,820 123,825 124,391 130,513 500,549 120,654 129,585 129,298 379,537

Total $187,313 $186,066 $186,640 $208,352 $768,371 $180,655 $190,346 $190,782 $561,783



SEGMENT OPERATING INCOME

Aerospace $12,494 $13,142 $14,782 $18,675 $59,093 $10,706 $12,095 $14,868 $37,668 & Defense

Industrial 5,169 12,406 9,807 12,441 39,823 9,735 10,400 11,268 31,403

Corporate (6,588) (9,664) (7,244) (7,789) (31,285) (8,002) (7,850) (6,878) (22,726) expenses

Total $11,075 $15,884 $17,345 $23,327 $67,631 $12,439 $14,645 $19,258 $46,345



SEGMENT OPERATING MARGIN %

Aerospace 19.1% 21.1% 23.7% 24.0% 22.1% 17.8% 19.9% 24.2% 20.7% & Defense

Industrial 4.2% 10.0% 7.9% 9.5% 8.0% 8.1% 8.0% 8.7% 8.3%

Total 5.9% 8.5% 9.3% 11.2% 8.8% 6.9% 7.7% 10.1% 8.2%



CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands, except percentages) (unaudited)

2020

2021

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

TOTAL

Net Cash (Used In) Provided By Operating Activities

$(23,947)

$(24,883)

$2,465

$23,641

$(22,724)

$(17,703)

$

10,984

$

11,389

$

4,670

LESS

Capital expenditures, net of sale proceeds (a)

3,412

3,527

2,330

3,275

12,544

3,392

2,644

4,541

10,577

FREE CASH FLOW

$(27,359)

$(28,410)

$135

$20,366

$(35,268)

$(21,095)

$

8,340

$

6,848

$

(5,907)

Gross Debt

$602,288

$592,038

$540,463

$519,938

$519,938

$536,938

$

523,038

$

517,038

$

517,038

Less: Cash & Cash equivalents

170,861

125,421

72,772

76,452

76,452

75,680

72,181

71,969

71,969

GROSS DEBT, NET OF CASH

$431,427

$466,617

$467,691

$443,486

$443,486

$461,258

$

450,857

$

445,069

$

445,069

TOTAL SHAREHOLDERS' EQUITY

$290,845

$273,351

$220,814

$206,041

$206,041

$196,106

$

183,039

$

184,544

$

184,544

GROSS DEBT AS % OF EQUITY

207%

217%

245%

252%

252%

274%

286

%

280

%

280

%

GROSS DEBT, NET OF CASH AS % OF EQUITY

148%

171%

212%

215%

215%

235%

246

%

241

%

241

%

(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)

2020 2021

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



Net Cash(Used In) $ $ $ $Provided By (23,947) (24,883) $2,465 $23,641 (22,724) (17,703) $ 10,984 $ 11,389 $ 4,670 OperatingActivities

LESS

Capitalexpenditures, 3,412 3,527 2,330 3,275 12,544 3,392 2,644 4,541 10,577 net of saleproceeds (a)

FREE CASH $ $ $135 $20,366 $ $ $ 8,340 $ 6,848 $ (5,907) FLOW (27,359) (28,410) (35,268) (21,095)





Gross Debt $602,288 $592,038 $540,463 $519,938 $519,938 $536,938 $ 523,038 $ 517,038 $ 517,038

Less: Cash &Cash 170,861 125,421 72,772 76,452 76,452 75,680 72,181 71,969 71,969 equivalents

GROSS DEBT, $431,427 $466,617 $467,691 $443,486 $443,486 $461,258 $ 450,857 $ 445,069 $ 445,069 NET OF CASH



TOTALSHAREHOLDERS' $290,845 $273,351 $220,814 $206,041 $206,041 $196,106 $ 183,039 $ 184,544 $ 184,544 EQUITY



GROSS DEBT AS 207% 217% 245% 252% 252% 274% 286 % 280 % 280 %% OF EQUITY

GROSS DEBT,NET OF CASH 148% 171% 212% 215% 215% 235% 246 % 241 % 241 %AS % OFEQUITY



(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)

2020

2021

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

TOTAL

NET (LOSS) INCOME

$

(78,948)

$

(34,092)

$

(58,524)

$

(13,934)

$

(185,498)

$

(7,119)

$

(15,563)

$

1,147

$

(21,535)

LESS:

Restructuring related inventory charges

(602)

-

351

-

(251)

-

958

(60)

899

Restructuring charges, net

2,883

588

502

972

4,945

2,060

2,281

(312)

4,029

Acquisition amortization

10,218

10,681

10,625

10,939

42,463

10,487

10,498

10,416

31,401

Acquisition depreciation

974

980

1,011

1,021

3,986

2,375

1,326

1,412

5,113

Special (recoveries) charges, net

(45,175)

5,019

436

473

(39,247)

(2,869)

4,522

1,126

2,779

Goodwill Impairment charge

116,182

-

-

-

116,182

-

-

-

-

Income tax impact

7,704

(22,549)

53,240

13,125

51,521

(335)

2,266

(860)

1,071

Net loss (income) from discontinued operations

(9,162)

43,847

(341)

795

35,140

239

878

(2,510)

(1,393)

ADJUSTED NET INCOME

$

4,074

$

4,475

$

7,300

$

13,390

$

29,240

$

4,838

$

7,165

$

10,359

$

22,363

(LOSS) EARNINGS PER COMMON SHARE (Diluted)

$

(3.96)

$

(1.68)

$

(2.93)

$

(0.70)

$

(9.28)

$

(0.35)

$

(0.77)

$

0.06

$

(1.05)

LESS:

Restructuring related inventory charges

(0.03)

-

0.02

-

(0.01)

-

0.05

-

0.04

Restructuring charges, net

0.14

0.03

0.02

0.05

0.25

0.10

0.11

(0.02)

0.20

Acquisition amortization

0.51

0.53

0.53

0.55

2.13

0.52

0.52

0.51

1.53

Acquisition depreciation

0.05

0.05

0.05

0.05

0.20

0.12

0.07

0.07

0.25

Special (recoveries) charges, net

(2.27)

0.25

0.02

0.02

(1.96)

(0.14)

0.22

0.05

0.14

Impairment charge

5.83

-

-

-

5.81

-

-

-

-

Income tax impact

0.39

(1.11)

2.66

0.66

2.58

(0.02)

0.11

(0.04)

0.05

(Loss) earnings) per share from discontinued operations

(0.46)

2.16

(0.02)

0.04

1.76

0.01

0.04

(0.12)

(0.07)

ADJUSTED EARNINGS PER SHARE (Diluted)

$

0.20

$

0.22

$

0.36

$

0.66

$

1.43

$

0.24

$

0.35

$

0.50

$

1.09

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTEDACCOUNTING PRINCIPLE TERMS

(in thousands, except percentages) (unaudited)

2020 2021

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

NET (LOSS) $ (78,948) $ (34,092) $ (58,524) $ (13,934) $ (185,498) $ (7,119) $ (15,563) $ 1,147 $ (21,535) INCOME

LESS:

Restructuringrelated (602) - 351 - (251) - 958 (60) 899 inventorycharges

Restructuring 2,883 588 502 972 4,945 2,060 2,281 (312) 4,029 charges, net

Acquisition 10,218 10,681 10,625 10,939 42,463 10,487 10,498 10,416 31,401 amortization

Acquisition 974 980 1,011 1,021 3,986 2,375 1,326 1,412 5,113 depreciation

Special(recoveries) (45,175) 5,019 436 473 (39,247) (2,869) 4,522 1,126 2,779 charges, net

GoodwillImpairment 116,182 - - - 116,182 - - - - charge

Income tax 7,704 (22,549) 53,240 13,125 51,521 (335) 2,266 (860) 1,071 impact

Net loss(income) from (9,162) 43,847 (341) 795 35,140 239 878 (2,510) (1,393) discontinuedoperations

ADJUSTED NET $ 4,074 $ 4,475 $ 7,300 $ 13,390 $ 29,240 $ 4,838 $ 7,165 $ 10,359 $ 22,363 INCOME



(LOSS)EARNINGS PER $ (3.96) $ (1.68) $ (2.93) $ (0.70) $ (9.28) $ (0.35) $ (0.77) $ 0.06 $ (1.05) COMMON SHARE(Diluted)

LESS:

Restructuringrelated (0.03) - 0.02 - (0.01) - 0.05 - 0.04 inventorycharges

Restructuring 0.14 0.03 0.02 0.05 0.25 0.10 0.11 (0.02) 0.20 charges, net

Acquisition 0.51 0.53 0.53 0.55 2.13 0.52 0.52 0.51 1.53 amortization

Acquisition 0.05 0.05 0.05 0.05 0.20 0.12 0.07 0.07 0.25 depreciation

Special(recoveries) (2.27) 0.25 0.02 0.02 (1.96) (0.14) 0.22 0.05 0.14 charges, net

Impairment 5.83 - - - 5.81 - - - - charge

Income tax 0.39 (1.11) 2.66 0.66 2.58 (0.02) 0.11 (0.04) 0.05 impact

(Loss)earnings) pershare from (0.46) 2.16 (0.02) 0.04 1.76 0.01 0.04 (0.12) (0.07) discontinuedoperations

ADJUSTEDEARNINGS PER $ 0.20 $ 0.22 $ 0.36 $ 0.66 $ 1.43 $ 0.24 $ 0.35 $ 0.50 $ 1.09 SHARE(Diluted)

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands, except percentages) (unaudited)

2020

2021

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

TOTAL

NET (LOSS) INCOME

$

(78,948)

$

(34,092)

$

(58,524)

$

(13,934)

$

(185,498)

$

(7,119)

$

(15,563)

$

1,147

$

(21,535)

LESS:

Interest expense, net

9,011

8,486

8,202

8,520

34,219

8,369

7,957

7,997

24,323

Depreciation

5,121

4,958

4,802

5,504

20,385

6,509

5,461

5,535

17,505

Amortization

10,516

10,976

10,925

11,245

43,662

10,696

10,657

10,576

31,929

Provision for income taxes

8,374

(21,769)

54,318

15,299

56,222

400

2,961

(92)

3,268

Loss (income) from discontinued operations

(9,162)

43,847

(341)

795

35,140

239

878

(2,510)

(1,393)

EBITDA

$

(55,088)

$

12,406

$

19,383

$

27,429

$

4,130

$

19,094

$

12,351

$

22,653

$

54,097

LESS:

Restructuring related inventory charges (recoveries)

(602)

-

351

-

(251)

-

958

(60)

899

Restructuring charges, net

2,883

588

502

972

4,945

2,060

2,281

(312)

4,029

Special (recoveries) charges, net

(45,175)

5,019

436

473

(39,247)

(2,869)

4,522

1,126

2,779

Goodwill impairment charge

116,182

-

-

-

116,182

-

-

-

-

ADJUSTED EBITDA

$

18,200

$

18,013

$

20,671

$

28,873

$

85,758

$

18,285

$

20,112

$

23,407

$

61,804

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTEDACCOUNTING PRINCIPLE TERMS

(in thousands, except percentages) (unaudited)

2020 2021

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



NET (LOSS) $ (78,948) $ (34,092) $ (58,524) $ (13,934) $ (185,498) $ (7,119) $ (15,563) $ 1,147 $ (21,535) INCOME

LESS:

Interest 9,011 8,486 8,202 8,520 34,219 8,369 7,957 7,997 24,323 expense, net

Depreciation 5,121 4,958 4,802 5,504 20,385 6,509 5,461 5,535 17,505

Amortization 10,516 10,976 10,925 11,245 43,662 10,696 10,657 10,576 31,929

Provision for 8,374 (21,769) 54,318 15,299 56,222 400 2,961 (92) 3,268 income taxes

Loss (income)from (9,162) 43,847 (341) 795 35,140 239 878 (2,510) (1,393) discontinuedoperations

EBITDA $ (55,088) $ 12,406 $ 19,383 $ 27,429 $ 4,130 $ 19,094 $ 12,351 $ 22,653 $ 54,097

LESS:

Restructuringrelatedinventory (602) - 351 - (251) - 958 (60) 899 charges(recoveries)

Restructuring 2,883 588 502 972 4,945 2,060 2,281 (312) 4,029 charges, net

Special(recoveries) (45,175) 5,019 436 473 (39,247) (2,869) 4,522 1,126 2,779 charges, net

Goodwillimpairment 116,182 - - - 116,182 - - - - charge

ADJUSTED $ 18,200 $ 18,013 $ 20,671 $ 28,873 $ 85,758 $ 18,285 $ 20,112 $ 23,407 $ 61,804 EBITDA

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands, except percentages) (unaudited)

2020

2021

1ST QTR

2ND QTR

3RD QTR

4TH QTR

TOTAL

1ST QTR

2ND QTR

3RD QTR

TOTAL

GAAP OPERATING INCOME (LOSS)

$

(73,405)

$

(1,384)

$

4,420

$

9,923

$

(60,446)

$

386

$

(4,940)

$

6,676

$

2,122

LESS:

Restructuring related inventory charges (recoveries)

(602)

-

351

-

(251)

-

958

(60)

899

Amortization of inventory step-up

-

-

-

-

-

-

-

-

-

Restructuring charges, net

2,883

588

502

972

4,945

2,060

2,281

(312)

4,029

Acquisition amortization

10,218

10,681

10,625

10,939

42,463

10,487

10,498

10,416

31,402

Acquisition depreciation

974

980

1,011

1,021

3,986

2,375

1,326

1,412

5,114

Special (recoveries) charges, net

(45,175)

5,019

436

473

(39,247)

(2,869)

4,522

1,126

2,779

Goodwill impairment charge

116,182

-

-

-

116,182

-

-

-

-

ADJUSTED OPERATING INCOME

$

11,075

$

15,884

$

17,345

$

23,327

$

67,631

$

12,439

$

14,645

$

19,258

$

46,345

GAAP OPERATING MARGIN

(38.2)

%

(0.7)

%

2.4

%

4.8

%

(7.8)

%

0.2

%

(2.7)

%

3.5

%

0.4

%

LESS:

Restructuring related inventory charges (recoveries)

(0.3)

%

-

%

0.2

%

-

%

-

%

-

%

0.5

%

-

%

0.2

%

Amortization of inventory step-up

-

%

-

%

-

%

-

%

-

%

-

%

-

%

-

%

-

%

Restructuring charges, net

1.5

%

0.3

%

0.3

%

0.5

%

0.6

%

1.1

%

1.3

%

(0.2)

%

0.7

%

Acquisition amortization

5.3

%

5.7

%

5.7

%

5.3

%

5.5

%

5.8

%

5.8

%

5.5

%

5.6

%

Acquisition depreciation

0.5

%

0.5

%

0.5

%

0.5

%

0.5

%

1.3

%

0.7

%

0.7

%

0.9

%

Special (recoveries) charges, net

(23.5)

%

2.7

%

0.2

%

0.2

%

(5.1)

%

(1.6)

%

2.5

%

0.6

%

0.5

%

Goodwill impairment charge

60.4

%

-

%

-

%

-

%

15.0

%

-

%

-

%

-

%

-

%

ADJUSTED OPERATING MARGIN

5.8

%

8.5

%

9.3

%

11.2

%

8.7

%

6.9

%

8.1

%

10.1

%

8.2

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20211112005363/en/

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