Crane Company Reports Second Quarter 2024 Results and Raises Full Year EPS Guidance
Second Quarter 2024 Highlights
-
Earnings per diluted share (EPS) of
$1.23 , up 64% and adjusted EPS of$1.30 , up 18%. -
Sales of
$581 million , up 14% driven by 9% core sales growth.
Full Year Outlook
-
Raising the midpoint of our full-year adjusted EPS guidance by
$0.15 and narrowing the full year adjusted EPS outlook to a range of$4.95-$5.15 , from prior range of$4.75-$5.05 .
Second Quarter 2024 Results
Second quarter 2024 GAAP EPS of
Second quarter sales increased 14%, with 9% core sales growth and a 6% contribution from acquisitions, partially offset by a slight headwind from unfavorable foreign exchange. Operating profit of
Summary of Second Quarter 2024 Results
|
|
Second Quarter |
|
Change |
|||||||
(unaudited, dollars in millions) |
|
2024 |
|
2023 |
|
$ |
|
% |
|||
Net sales |
|
|
|
|
|
$ |
72 |
|
|
14 |
% |
Core sales |
|
|
|
|
|
|
44 |
|
|
9 |
% |
Acquisitions |
|
|
|
|
|
|
29 |
|
|
6 |
% |
Foreign exchange |
|
|
|
|
|
|
(1 |
) |
|
0 |
% |
|
|
|
|
|
|
|
|
|
|||
Operating profit |
|
|
|
|
|
$ |
34 |
|
|
53 |
% |
Adjusted operating profit* |
|
|
|
|
|
$ |
19 |
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|||
Operating profit margin |
|
16.6% |
|
12.4% |
|
|
|
420bps |
|||
Adjusted operating profit margin* |
|
17.7% |
|
16.5% |
|
|
|
120bps |
|||
*Please see the attached Non-GAAP Financial Measures tables |
Cash Flow, Financing Activities and Other Financial Metrics
During the second quarter of 2024, cash provided by operating activities was
As of
Second Quarter 2024 Segment Results
All comparisons detailed in this section refer to operating results for the second quarter 2024 versus the second quarter 2023.
Aerospace & Electronics
|
|
Second Quarter |
|
Change |
||||||||||
(unaudited, dollars in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
||
Net sales |
|
$ |
231 |
|
|
$ |
189 |
|
|
$ |
42 |
|
22 |
% |
Core sales |
|
|
|
|
|
|
31 |
|
16 |
% |
||||
Acquisitions |
|
|
|
|
|
|
11 |
|
6 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||
Operating profit |
|
$ |
53 |
|
|
$ |
38 |
|
|
$ |
14 |
|
38 |
% |
Adjusted operating profit* |
|
$ |
55 |
|
|
$ |
38 |
|
|
$ |
17 |
|
43 |
% |
|
|
|
|
|
|
|
|
|
||||||
Operating profit margin |
|
|
22.8 |
% |
|
|
20.2 |
% |
|
|
|
260bps |
||
Adjusted operating profit margin* |
|
|
23.8 |
% |
|
|
20.2 |
% |
|
|
|
360bps |
||
*Please see the attached Non-GAAP Financial Measures tables |
Sales of
Process Flow Technologies
|
|
Second Quarter |
|
Change |
|||||||||||
(unaudited, dollars in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
|||
Net sales |
|
$ |
298 |
|
|
$ |
263 |
|
|
$ |
35 |
|
|
13 |
% |
Core sales |
|
|
|
|
|
|
17 |
|
|
7 |
% |
||||
Foreign exchange |
|
|
|
|
|
|
(1 |
) |
|
0 |
% |
||||
Acquisitions |
|
|
|
|
|
|
18 |
|
|
7 |
% |
||||
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
60 |
|
|
$ |
51 |
|
|
$ |
9 |
|
|
18 |
% |
Adjusted operating profit* |
|
$ |
61 |
|
|
$ |
53 |
|
|
$ |
8 |
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Operating profit margin |
|
|
20.0 |
% |
|
|
19.2 |
% |
|
|
|
80bps |
|||
Adjusted operating profit margin* |
|
|
20.5 |
% |
|
|
20.0 |
% |
|
|
|
50bps |
|||
*Please see the attached Non-GAAP Financial Measures tables |
Sales of
Engineered Materials
|
|
Second Quarter |
|
Change |
|||||||||||
(unaudited, dollars in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
|||
Net sales |
|
$ |
53 |
|
|
$ |
57 |
|
|
$ |
(5 |
) |
|
(8 |
%) |
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
7 |
|
|
$ |
10 |
|
|
$ |
(3 |
) |
|
(26 |
%) |
Adjusted operating profit* |
|
$ |
7 |
|
|
$ |
10 |
|
|
$ |
(2 |
) |
|
(23 |
%) |
|
|
|
|
|
|
|
|
|
|||||||
Operating profit margin |
|
|
13.9 |
% |
|
|
17.1 |
% |
|
|
|
(320bps) |
|||
Adjusted operating profit margin* |
|
|
13.9 |
% |
|
|
16.6 |
% |
|
|
|
(270bps) |
|||
*Please see the attached Non-GAAP Financial Measures tables |
Sales of
Updating 2024 Guidance
We are raising the midpoint of our full-year adjusted EPS guidance by
Key assumptions for our revised guidance include:
- Total sales growth of approximately 11% (prior 10%) driven by core sales growth of approximately 5% to 7% (prior 4% to 6%) and an acquisition benefit of approximately 5% (unchanged).
- Adjusted segment operating margin of ~20.7% (prior 20.5%).
-
Corporate cost of
$80 million (prior$75 million ). -
Net non-operating expense of
$20 million (prior$23 million ). - Adjusted tax rate of 23.0% (prior 23.5%).
- Diluted shares of ~58 million (unchanged).
Additional details of our outlook and guidance are included in the presentation that accompanies this earnings release available on our website at www.craneco.com in the "investors" section.
Additional Information
References to changes in “core sales” or "core growth" in this report include the change in sales excluding the impact of foreign currency translation and acquisitions and divestitures from closing up to the first anniversary of such acquisitions or divestitures.
Crane operated as part of
As a result of the change in accounting presentation required by GAAP, first quarter 2023 GAAP EPS was reported as
Conference Call
Crane has scheduled a conference call to discuss the second quarter financial results on
About
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including, but not limited to: benefits and synergies of the separation transaction; strategic and competitive advantages of Crane; future financing plans and opportunities; and business strategies, prospects and projected operating and financial results. We caution investors not to place undue reliance on any such forward-looking statements.
These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained.
Risks and uncertainties that could cause actual results to differ materially from our expectations include, but are not limited to: changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations that may harm our business, results of operation and stock price; information systems and technology networks failures and breaches in data security, theft of personally identifiable and other information, non-compliance with our contractual or other legal obligations regarding such information; our ability to source components and raw materials from suppliers, including disruptions and delays in our supply chain; demand for our products, which is variable and subject to factors beyond our control; governmental regulations and failure to comply with those regulations; fluctuations in the prices of our components and raw materials; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow our business as planned; risks from environmental liabilities, costs, litigation and violations that could adversely affect our financial condition, results of operations, cash flows and reputation; risks associated with conducting a substantial portion of our business outside the
Readers should carefully review Crane’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Crane’s Annual Report on Form 10-K for the year ended
We make no representations or warranties as to the accuracy of any projections, statements or information contained in this press release. It is understood and agreed that any such projections, targets, statements and information are not to be viewed as facts and are subject to significant business, financial, economic, operating, competitive and other risks, uncertainties and contingencies many of which are beyond our control, that no assurance can be given that any particular financial projections ranges, or targets will be realized, that actual results may differ from projected results and that such differences may be material. While all financial projections, estimates and targets are necessarily speculative, we believe that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this press release should not be regarded as an indication that we or our representatives, considered or consider the financial projections, estimates and targets to be a reliable prediction of future events.
(Financial Tables Follow)
Source:
Condensed Statements of Operations Data (unaudited, in millions, except per share data) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net sales: |
|
|
|
|
|
|
|
|||||||||
Aerospace & Electronics |
$ |
230.9 |
|
|
$ |
189.2 |
|
|
$ |
456.8 |
|
|
$ |
369.3 |
|
|
Process Flow Technologies |
|
297.7 |
|
|
|
263.2 |
|
|
|
582.0 |
|
|
|
534.6 |
|
|
Engineered Materials |
|
52.6 |
|
|
|
57.2 |
|
|
|
107.7 |
|
|
|
119.5 |
|
|
Total net sales |
$ |
581.2 |
|
|
$ |
509.6 |
|
|
$ |
1,146.5 |
|
|
$ |
1,023.4 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit: |
|
|
|
|
|
|
|
|||||||||
Aerospace & Electronics |
$ |
52.7 |
|
|
$ |
38.3 |
|
|
$ |
101.0 |
|
|
$ |
75.9 |
|
|
Process Flow Technologies |
|
59.5 |
|
|
|
50.6 |
|
|
|
116.4 |
|
|
|
113.9 |
|
|
Engineered Materials |
|
7.3 |
|
|
|
9.8 |
|
|
|
15.4 |
|
|
|
21.2 |
|
|
Corporate |
|
(22.9 |
) |
|
|
(35.6 |
) |
|
|
(46.8 |
) |
|
|
(70.4 |
) |
|
Total operating profit |
$ |
96.6 |
|
|
$ |
63.1 |
|
|
$ |
186.0 |
|
|
$ |
140.6 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest income |
$ |
1.3 |
|
|
$ |
0.8 |
|
|
$ |
2.5 |
|
|
$ |
1.7 |
|
|
Interest expense |
|
(7.4 |
) |
|
|
(5.3 |
) |
|
|
(14.6 |
) |
|
|
(11.8 |
) |
|
Miscellaneous income (expense), net |
|
1.1 |
|
|
|
(1.3 |
) |
|
|
(0.2 |
) |
|
|
(1.9 |
) |
|
Income from continuing operations before income taxes |
|
91.6 |
|
|
|
57.3 |
|
|
|
173.7 |
|
|
|
128.6 |
|
|
Provision for income taxes |
|
20.0 |
|
|
|
14.0 |
|
|
|
37.3 |
|
|
|
29.4 |
|
|
Net income from continuing operations attributable to common shareholders |
|
71.6 |
|
|
|
43.3 |
|
|
|
136.4 |
|
|
|
99.2 |
|
|
Income from discontinued operations, net of tax |
|
— |
|
|
|
2.3 |
|
|
|
— |
|
|
|
52.1 |
|
|
Net income attributable to common shareholders |
$ |
71.6 |
|
|
$ |
45.6 |
|
|
$ |
136.4 |
|
|
$ |
151.3 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per diluted share from continuing operations |
$ |
1.23 |
|
|
$ |
0.75 |
|
|
$ |
2.34 |
|
|
$ |
1.73 |
|
|
Earnings per diluted share from discontinued operations |
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.91 |
|
|
Earnings per diluted share |
$ |
1.23 |
|
|
$ |
0.79 |
|
|
$ |
2.34 |
|
|
$ |
2.64 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Average diluted shares outstanding |
|
58.3 |
|
|
|
57.4 |
|
|
|
58.2 |
|
|
|
57.4 |
|
|
Average basic shares outstanding |
|
57.2 |
|
|
|
56.7 |
|
|
|
57.1 |
|
|
|
56.6 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Supplemental data: |
|
|
|
|
|
|
|
|||||||||
Cost of sales |
$ |
357.3 |
|
|
$ |
308.5 |
|
|
$ |
702.1 |
|
|
$ |
615.4 |
|
|
Selling, general & administrative |
|
127.3 |
|
|
|
138.0 |
|
|
|
258.4 |
|
|
|
267.4 |
|
|
Transaction related expenses (a) |
|
5.9 |
|
|
|
19.2 |
|
|
|
12.7 |
|
|
|
32.2 |
|
|
Repositioning related charges, net (a) |
|
0.1 |
|
|
|
1.7 |
|
|
|
0.5 |
|
|
|
2.0 |
|
|
Depreciation and amortization (a) |
|
13.8 |
|
|
|
9.8 |
|
|
|
26.7 |
|
|
|
19.0 |
|
|
Stock-based compensation expense (a) |
|
6.9 |
|
|
|
8.4 |
|
|
|
13.5 |
|
|
|
14.0 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(a) Amounts included within Cost of sales and/or Selling, general & administrative costs. |
Condensed Balance Sheets (unaudited, in millions) |
||||||
|
|
|
|
|
||
|
|
2024 |
|
2 023 |
||
|
|
|
|
|
||
Assets |
|
|
|
|
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
229.3 |
|
$ |
329.6 |
Accounts receivable, net |
|
|
370.9 |
|
|
306.4 |
Inventories, net |
|
|
389.6 |
|
|
353.1 |
Other current assets |
|
|
119.4 |
|
|
101.7 |
Total current assets |
|
|
1,109.2 |
|
|
1,090.8 |
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
273.6 |
|
|
270.5 |
Other assets |
|
|
299.8 |
|
|
224.6 |
|
|
|
824.1 |
|
|
747.7 |
Total assets |
|
$ |
2,506.7 |
|
$ |
2,333.6 |
|
|
|
|
|
||
Liabilities and Equity |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Short-term borrowings |
|
$ |
130.0 |
|
$ |
— |
Accounts payable |
|
|
157.4 |
|
|
179.1 |
Accrued liabilities |
|
|
229.3 |
|
|
273.7 |
Income taxes |
|
|
3.9 |
|
|
14.3 |
Total current liabilities |
|
|
520.6 |
|
|
467.1 |
|
|
|
|
|
||
Long-term debt |
|
|
246.9 |
|
|
248.5 |
Long-term deferred tax liability |
|
|
49.1 |
|
|
37.1 |
Other liabilities |
|
|
214.4 |
|
|
220.6 |
Total liabilities |
|
|
1,031.0 |
|
|
973.3 |
Total equity |
|
|
1,475.7 |
|
|
1,360.3 |
Total liabilities and equity |
|
$ |
2,506.7 |
|
$ |
2,333.6 |
Condensed Statements of Cash Flows (unaudited, in millions) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
|
|
|
|
|||||||||
Net income attributable to common shareholders |
$ |
71.6 |
|
|
$ |
45.6 |
|
|
$ |
136.4 |
|
|
$ |
151.3 |
|
|
Less: Income from discontinued operations, net of tax |
|
— |
|
|
|
2.3 |
|
|
|
— |
|
|
|
52.1 |
|
|
Net income from continuing operations attributable to common shareholders |
|
71.6 |
|
|
|
43.3 |
|
|
|
136.4 |
|
|
|
99.2 |
|
|
Depreciation and amortization |
|
13.8 |
|
|
|
9.8 |
|
|
|
26.7 |
|
|
|
19.0 |
|
|
Stock-based compensation expense |
|
6.9 |
|
|
|
8.4 |
|
|
|
13.5 |
|
|
|
14.0 |
|
|
Defined benefit plans and postretirement cost |
|
1.0 |
|
|
|
1.9 |
|
|
|
1.9 |
|
|
|
4.8 |
|
|
Deferred income taxes |
|
(0.1 |
) |
|
|
(5.3 |
) |
|
|
— |
|
|
|
(3.7 |
) |
|
Cash (used for) provided by operating working capital |
|
(24.0 |
) |
|
|
1.3 |
|
|
|
(186.4 |
) |
|
|
(183.3 |
) |
|
Defined benefit plans and postretirement contributions |
|
(5.4 |
) |
|
|
(5.4 |
) |
|
|
(6.0 |
) |
|
|
(5.7 |
) |
|
Environmental payments, net of reimbursements |
|
(1.4 |
) |
|
|
(0.6 |
) |
|
|
(2.8 |
) |
|
|
(1.9 |
) |
|
Other |
|
(0.4 |
) |
|
|
(1.0 |
) |
|
|
(1.2 |
) |
|
|
4.6 |
|
|
Total provided by (used for) operating activities from continuing operations |
|
62.0 |
|
|
|
52.4 |
|
|
|
(17.9 |
) |
|
|
(53.0 |
) |
|
Investing activities: |
|
|
|
|
|
|
|
|||||||||
Payment for acquisition - net of cash acquired |
|
(60.7 |
) |
|
|
— |
|
|
|
(166.3 |
) |
|
|
— |
|
|
Capital expenditures |
|
(7.4 |
) |
|
|
(11.6 |
) |
|
|
(16.5 |
) |
|
|
(20.5 |
) |
|
Other investing activities |
|
5.5 |
|
|
|
(0.5 |
) |
|
|
5.7 |
|
|
|
(0.3 |
) |
|
Total used for investing activities from continuing operations |
|
(62.6 |
) |
|
|
(12.1 |
) |
|
|
(177.1 |
) |
|
|
(20.8 |
) |
|
Financing activities: |
|
|
|
|
|
|
|
|||||||||
Dividends paid |
|
(11.7 |
) |
|
|
(10.2 |
) |
|
|
(23.4 |
) |
|
|
(36.8 |
) |
|
Net proceeds (payments) related to employee stock plans |
|
3.4 |
|
|
|
0.8 |
|
|
|
(5.1 |
) |
|
|
13.7 |
|
|
Debt issuance costs |
|
— |
|
|
|
(3.4 |
) |
|
|
— |
|
|
|
(7.5 |
) |
|
Proceeds from long-term debt |
|
50.0 |
|
|
|
300.0 |
|
|
|
190.0 |
|
|
|
300.0 |
|
|
Proceeds from term facility of discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
350.0 |
|
|
Repayments of long-term debt |
|
(30.0 |
) |
|
|
(36.9 |
) |
|
|
(61.9 |
) |
|
|
(436.9 |
) |
|
Distribution of |
|
— |
|
|
|
(578.1 |
) |
|
|
— |
|
|
|
(578.1 |
) |
|
Total provided by (used for) financing activities from continuing and discontinued operations |
|
11.7 |
|
|
|
(327.8 |
) |
|
|
99.6 |
|
|
|
(395.6 |
) |
|
Discontinued operations: |
|
|
|
|
|
|
|
|||||||||
Total provided by operating activities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
34.6 |
|
|
Total used for investing activities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4.1 |
) |
|
Increase in cash and cash equivalents from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30.5 |
|
|
Effect of exchange rate on cash and cash equivalents |
|
(1.2 |
) |
|
|
(3.8 |
) |
|
|
(4.9 |
) |
|
|
0.2 |
|
|
Increase (decrease) in cash and cash equivalents |
|
9.9 |
|
|
|
(291.3 |
) |
|
|
(100.3 |
) |
|
|
(438.7 |
) |
|
Cash and cash equivalents at beginning of period (a) |
|
219.4 |
|
|
|
510.2 |
|
|
|
329.6 |
|
|
|
657.6 |
|
|
Cash and cash equivalents at end of period |
$ |
229.3 |
|
|
$ |
218.9 |
|
|
$ |
229.3 |
|
|
$ |
218.9 |
|
|
(a) 2023 Includes cash and cash equivalents of discontinued operations. |
Order Backlog (unaudited, in millions) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|||||
Aerospace & Electronics (a) |
|
$ |
814.9 |
|
$ |
791.8 |
|
$ |
700.9 |
|
$ |
677.9 |
|
$ |
675.1 |
Process Flow Technologies(b) (c) |
|
|
399.9 |
|
|
393.3 |
|
|
379.0 |
|
|
352.9 |
|
|
352.9 |
Engineered Materials |
|
|
11.0 |
|
|
12.8 |
|
|
11.3 |
|
|
14.6 |
|
|
14.5 |
Total backlog |
|
$ |
1,225.8 |
|
$ |
1,197.9 |
|
$ |
1,091.2 |
|
$ |
1,045.4 |
|
$ |
1,042.5 |
(a) Includes
(b) Includes
(c) Includes $6.4 million,
Non-GAAP Financial Measures (unaudited, in millions, except per share data) |
|||||||||||||||||||
|
|
|
|
|
|||||||||||||||
|
|
Three Months Ended |
|
|
|||||||||||||||
|
|
2024 |
|
2023 |
|
% Change |
|||||||||||||
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
(on $) |
|||||||||
Net sales (GAAP) |
|
$ |
581.2 |
|
|
|
|
$ |
509.6 |
|
|
|
|
14.1 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Operating Profit and Adjusted Operating Profit Margin |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit (GAAP) |
|
$ |
96.6 |
|
|
|
|
$ |
63.1 |
|
|
|
|
53.1 |
% |
||||
Operating profit margin (GAAP) |
|
|
16.6 |
% |
|
|
|
|
12.4 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Transaction related expenses(a)(b) |
|
|
5.9 |
|
|
|
|
|
19.2 |
|
|
|
|
|
|||||
Repositioning related charges, net |
|
|
0.1 |
|
|
|
|
|
1.7 |
|
|
|
|
|
|||||
Adjusted operating profit (Non-GAAP) |
|
$ |
102.6 |
|
|
|
|
$ |
84.0 |
|
|
|
|
22.1 |
% |
||||
Adjusted operating profit margin (Non-GAAP) |
|
|
17.7 |
% |
|
|
|
|
16.5 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Net Income and Adjusted Net Income per Share |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income from continuing operations attributable to common shareholders (GAAP) |
|
$ |
71.6 |
|
|
$ |
1.23 |
|
|
$ |
43.3 |
|
|
$ |
0.75 |
|
|
65.4 |
% |
Transaction related expenses(a)(b) |
|
|
5.3 |
|
|
|
0.09 |
|
|
|
19.2 |
|
|
|
0.33 |
|
|
|
|
Repositioning related charges, net |
|
|
0.1 |
|
|
|
— |
|
|
|
1.7 |
|
|
|
0.03 |
|
|
|
|
Impact of pension non-service costs |
|
|
(0.3 |
) |
|
|
— |
|
|
|
1.5 |
|
|
|
0.03 |
|
|
|
|
Tax effect of the Non-GAAP adjustments |
|
|
(1.2 |
) |
|
|
(0.02 |
) |
|
|
(2.3 |
) |
|
|
(0.04 |
) |
|
|
|
Adjusted net income (Non-GAAP) |
|
$ |
75.5 |
|
|
$ |
1.30 |
|
|
$ |
63.4 |
|
|
$ |
1.10 |
|
|
19.1 |
% |
|
|
|
|||||||||||||||||
Adjusted EBITDA and Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (GAAP) |
|
$ |
71.6 |
|
|
|
|
$ |
43.3 |
|
|
|
|
65.4 |
% |
||||
Net income margin (GAAP) |
|
|
12.3 |
% |
|
|
|
|
8.5 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments to net income: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense, net |
|
|
6.1 |
|
|
|
|
|
4.5 |
|
|
|
|
|
|||||
Income tax expense |
|
|
20.0 |
|
|
|
|
|
14.0 |
|
|
|
|
|
|||||
Depreciation |
|
|
9.5 |
|
|
|
|
|
8.0 |
|
|
|
|
|
|||||
Amortization |
|
|
4.3 |
|
|
|
|
|
1.8 |
|
|
|
|
|
|||||
Miscellaneous (income) expense, net |
|
|
(1.1 |
) |
|
|
|
|
1.3 |
|
|
|
|
|
|||||
Repositioning related charges, net |
|
|
0.1 |
|
|
|
|
|
1.7 |
|
|
|
|
|
|||||
Transaction related expenses(a)(b) |
|
|
2.5 |
|
|
|
|
|
19.2 |
|
|
|
|
|
|||||
Adjusted EBITDA (Non-GAAP) |
|
$ |
113.0 |
|
|
|
|
$ |
93.8 |
|
|
|
|
20.5 |
% |
||||
Adjusted EBITDA Margin (Non-GAAP) |
|
|
19.4 |
% |
|
|
|
|
18.4 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(a) 2024 transaction-related expenses primarily associated with the Vian and CryoWorks acquisitions. |
|||||||||||||||||||
(b) 2023 transaction-related expenses primarily associated with the separation. |
|||||||||||||||||||
Totals may not sum due to rounding |
Non-GAAP Financial Measures (in millions, except per share data) |
|||||||||||||||||||
|
|
|
|
|
|||||||||||||||
|
|
Six Months Ended |
|
|
|||||||||||||||
|
|
2024 |
|
2023 |
|
% Change |
|||||||||||||
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
(on $) |
|||||||||
Net sales (GAAP) |
|
$ |
1,146.5 |
|
|
|
|
$ |
1,023.4 |
|
|
|
|
12.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Operating Profit and Adjusted Operating Profit Margin |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit (GAAP) |
|
$ |
186.0 |
|
|
|
|
$ |
140.6 |
|
|
|
|
32.3 |
% |
||||
Operating profit margin (GAAP) |
|
|
16.2 |
% |
|
|
|
|
13.7 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Transaction related expenses(a)(b) |
|
|
12.7 |
|
|
|
|
|
32.2 |
|
|
|
|
|
|||||
Repositioning related charges, net |
|
|
0.5 |
|
|
|
|
|
2.0 |
|
|
|
|
|
|||||
Adjusted operating profit (Non-GAAP) |
|
$ |
199.2 |
|
|
|
|
$ |
174.8 |
|
|
|
|
14.0 |
% |
||||
Adjusted operating profit margin (Non-GAAP) |
|
|
17.4 |
% |
|
|
|
|
17.1 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Net Income and Adjusted Net Income per Share |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income from continuing operations attributable to common shareholders (GAAP) |
|
$ |
136.4 |
|
|
$ |
2.34 |
|
|
$ |
99.2 |
|
|
$ |
1.73 |
|
|
37.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Transaction related expenses(a)(b) |
|
|
12.1 |
|
|
|
0.21 |
|
|
|
32.2 |
|
|
|
0.56 |
|
|
|
|
Repositioning related charges, net |
|
|
0.5 |
|
|
|
0.01 |
|
|
|
2.0 |
|
|
|
0.03 |
|
|
|
|
Impact of pension non-service costs |
|
|
0.3 |
|
|
|
— |
|
|
|
2.9 |
|
|
|
0.05 |
|
|
|
|
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
5.9 |
|
|
|
0.10 |
|
|
|
|
Tax effect of the Non-GAAP adjustments |
|
|
(2.7 |
) |
|
|
(0.04 |
) |
|
|
(6.6 |
) |
|
|
(0.11 |
) |
|
|
|
Adjusted net income (Non-GAAP) |
|
$ |
146.6 |
|
|
$ |
2.52 |
|
|
$ |
135.6 |
|
|
$ |
2.36 |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA and Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (GAAP) |
|
$ |
136.4 |
|
|
|
|
$ |
99.2 |
|
|
|
|
37.5 |
% |
||||
Net income margin (GAAP) |
|
|
11.9 |
% |
|
|
|
|
9.7 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments to net income: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense, net |
|
|
12.1 |
|
|
|
|
|
10.2 |
|
|
|
|
|
|||||
Income tax expense |
|
|
37.3 |
|
|
|
|
|
29.4 |
|
|
|
|
|
|||||
Depreciation |
|
|
18.5 |
|
|
|
|
|
16.0 |
|
|
|
|
|
|||||
Amortization |
|
|
8.2 |
|
|
|
|
|
3.0 |
|
|
|
|
|
|||||
Miscellaneous expense, net |
|
|
0.2 |
|
|
|
|
|
1.8 |
|
|
|
|
|
|||||
Repositioning related charges, net |
|
|
0.5 |
|
|
|
|
|
2.0 |
|
|
|
|
|
|||||
Transaction related expenses(a)(b) |
|
|
9.3 |
|
|
|
|
|
32.2 |
|
|
|
|
|
|||||
Adjusted EBITDA (Non-GAAP) |
|
$ |
222.5 |
|
|
|
|
$ |
193.8 |
|
|
|
|
14.8 |
% |
||||
Adjusted EBITDA Margin (Non-GAAP) |
|
|
19.4 |
% |
|
|
|
|
18.9 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(a) 2024 transaction-related expenses are primarily associated with the Vian and CryoWorks acquisitions. |
|||||||||||||||||||
(b) 2023 transaction-related expenses are primarily associated with the separation. |
|||||||||||||||||||
Totals may not sum due to rounding |
Non-GAAP Financial Measures by Segment (unaudited, in millions) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended |
|
Aerospace & Electronics |
|
Process Flow Technologies |
|
Engineered Materials |
|
Corporate |
|
Total Company |
||||||||||
Net sales |
$ |
230.9 |
|
|
$ |
297.7 |
|
|
$ |
52.6 |
|
|
$ |
— |
|
|
$ |
581.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating profit (GAAP) |
$ |
52.7 |
|
|
$ |
59.5 |
|
|
$ |
7.3 |
|
|
$ |
(22.9 |
) |
|
$ |
96.6 |
|
|
Operating profit margin (GAAP) |
|
22.8 |
% |
|
|
20.0 |
% |
|
|
13.9 |
% |
|
|
|
|
16.6 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
|||||||||||
Transaction related expenses(a) |
|
2.2 |
|
|
|
1.3 |
|
|
|
— |
|
|
|
2.4 |
|
|
|
5.9 |
|
|
Repositioning related charges, net |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
Adjusted operating profit (Non-GAAP) |
$ |
54.9 |
|
|
$ |
60.9 |
|
|
$ |
7.3 |
|
|
$ |
(20.5 |
) |
|
$ |
102.6 |
|
|
Adjusted operating profit margin (Non-GAAP) |
|
23.8 |
% |
|
|
20.5 |
% |
|
|
13.9 |
% |
|
|
|
|
17.7 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
|
|||||||||||
Net sales |
$ |
189.2 |
|
|
$ |
263.2 |
|
|
$ |
57.2 |
|
|
$ |
— |
|
|
$ |
509.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating profit (GAAP) |
$ |
38.3 |
|
|
$ |
50.6 |
|
|
$ |
9.8 |
|
|
$ |
(35.6 |
) |
|
$ |
63.1 |
|
|
Operating profit margin (GAAP) |
|
20.2 |
% |
|
|
19.2 |
% |
|
|
17.1 |
% |
|
|
|
|
12.4 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
|||||||||||
Transaction related expenses(b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19.2 |
|
|
|
19.2 |
|
|
Repositioning related charges, net |
|
— |
|
|
|
2.0 |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
1.7 |
|
|
Adjusted operating profit (Non-GAAP) |
$ |
38.3 |
|
|
$ |
52.6 |
|
|
$ |
9.5 |
|
|
$ |
(16.4 |
) |
|
$ |
84.0 |
|
|
Adjusted operating profit margin (Non-GAAP) |
|
20.2 |
% |
|
|
20.0 |
% |
|
|
16.6 |
% |
|
|
|
|
16.5 |
% |
|||
(a) 2024 transaction-related expenses are primarily associated with the Vian and CryoWorks acquisitions. |
||||||||||||||||||||
(b) 2023 transaction-related expenses are primarily associated with the separation. |
||||||||||||||||||||
Totals may not sum due to rounding |
Non-GAAP Financial Measures by Segment (in millions) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended |
|
Aerospace & Electronics |
|
Process Flow Technologies |
|
Engineered Materials |
|
Corporate |
|
Total Company |
||||||||||
Net sales |
$ |
456.8 |
|
|
$ |
582.0 |
|
|
$ |
107.7 |
|
|
$ |
— |
|
|
$ |
1,146.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating profit (GAAP) |
$ |
101.0 |
|
|
$ |
116.4 |
|
|
$ |
15.4 |
|
|
$ |
(46.8 |
) |
|
$ |
186.0 |
|
|
Operating profit margin (GAAP) |
|
22.1 |
% |
|
|
20.0 |
% |
|
|
14.3 |
% |
|
|
|
|
16.2 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
|||||||||||
Transaction related expenses(a) |
|
4.6 |
|
|
|
3.2 |
|
|
|
— |
|
|
|
4.9 |
|
|
|
12.7 |
|
|
Repositioning related charges , net |
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
Adjusted operating profit (Non-GAAP) |
$ |
105.6 |
|
|
$ |
120.1 |
|
|
$ |
15.4 |
|
|
$ |
(41.9 |
) |
|
$ |
199.2 |
|
|
Adjusted operating profit margin (Non-GAAP) |
|
23.1 |
% |
|
|
20.6 |
% |
|
|
14.3 |
% |
|
|
|
|
17.4 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Six Months Ended |
|
|
|
|
|
|
|
|
|
|||||||||||
Net sales |
$ |
369.3 |
|
|
$ |
534.6 |
|
|
$ |
119.5 |
|
|
$ |
— |
|
|
$ |
1,023.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating profit (GAAP) |
$ |
75.9 |
|
|
$ |
113.9 |
|
|
$ |
21.2 |
|
|
$ |
(70.4 |
) |
|
$ |
140.6 |
|
|
Operating profit margin (GAAP) |
|
20.6 |
% |
|
|
21.3 |
% |
|
|
17.7 |
% |
|
|
|
|
13.7 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Special items impacting operating profit: |
|
|
|
|
|
|
|
|
|
|||||||||||
Transaction related expenses(b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32.2 |
|
|
|
32.2 |
|
|
Repositioning related charges, net |
|
— |
|
|
|
2.3 |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
2.0 |
|
|
Adjusted operating profit (Non-GAAP) |
$ |
75.9 |
|
|
$ |
116.2 |
|
|
$ |
20.9 |
|
|
$ |
(38.2 |
) |
|
$ |
174.8 |
|
|
Adjusted operating profit margin (Non-GAAP) |
|
20.6 |
% |
|
|
21.7 |
% |
|
|
17.5 |
% |
|
|
|
|
17.1 |
% |
|||
(a) 2024 transaction-related expenses are primarily associated with the Vian and CryoWorks acquisitions. |
||||||||||||||||||||
(b) 2023 transaction-related expenses are primarily associated with the separation. |
||||||||||||||||||||
Totals may not sum due to rounding |
Adjusted Free Cash Flow (unaudited, in millions, except per share data) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Cash Flow Items |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash provided by (used for) operating activities from continuing operations |
|
$ |
62.0 |
|
|
$ |
52.4 |
|
|
$ |
(17.9 |
) |
|
$ |
(53.0 |
) |
Less: Capital expenditures |
|
|
(7.4 |
) |
|
|
(11.6 |
) |
|
|
(16.5 |
) |
|
|
(20.5 |
) |
Free cash flow |
|
$ |
54.6 |
|
|
$ |
40.8 |
|
|
$ |
(34.4 |
) |
|
$ |
(73.5 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Transaction-related expenses |
|
$ |
2.4 |
|
|
$ |
19.2 |
|
|
$ |
5.1 |
|
|
$ |
32.2 |
|
Adjusted free cash flow |
|
$ |
57.0 |
|
|
$ |
60.0 |
|
|
$ |
(29.3 |
) |
|
$ |
(41.3 |
) |
Reconciliations of certain forward-looking and projected non-GAAP measures for
- "Adjusted operating margin" is calculated as adjusted operating profit divided by sales. Adjusted operating profit is calculated as operating profit before Special Items which include transaction related expenses such as professional fees, and incremental costs related to the separation; and repositioning related charges. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
- "Adjusted EPS" is calculated as adjusted net income divided by diluted shares. Adjusted net income is calculated as net income adjusted for Special Items which include transaction related expenses such as professional fees, and incremental costs related to the separation; repositioning related charges; and, the impact of pension non-service costs. We believe that non-GAAP financial measures adjusted for these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
We believe that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations:
- "Adjusted Operating Profit" and "Adjusted Operating Margin" add back to Operating Profit items which are outside of our core performance, some of which may or may not be non-recurring, and which we believe may complicate the interpretation of the Company’s underlying earnings and operational performance. These items include income and expense such as: transaction related expenses and repositioning related (gains) charges. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
- "Adjusted Net Income" and "Adjusted EPS" exclude items which are outside of our core performance, some of which may or may not be non-recurring, and which we believe may complicate the presentation of the Company’s underlying earnings and operational performance. These measures include income and expense items that impacted Operating Profit such as: transaction related expenses and repositioning related (gains) charges. Additionally, these non-GAAP financial measures exclude income and expense items that impacted Net Income and Earnings per Diluted Share such as the impact of pension non-service costs. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
- "Adjusted EBITDA" adds back to net income: net interest expense, income tax expense, depreciation and amortization, miscellaneous (income) expense, net, and Special Items including transaction related expenses. "Adjusted EBITDA Margin" is calculated as adjusted EBITDA divided by net sales. We believe that adjusted EBITDA and adjusted EBITDA margin provide investors with an alternative metric that may be a meaningful indicator of our performance and provides useful information to investors regarding our financial conditions and results of operations that is complementary to GAAP metrics.
- “Free Cash Flow” and “Adjusted Free Cash Flow” provide supplemental information to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities. The measure of free cash flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on the Company’s long-term debt. Free Cash Flow is calculated as cash provided by operating activities less capital spending. Adjusted Free Cash Flow is calculated as Free Cash Flow adjusted for certain cash items which we believe may complicate the interpretation of the Company’s underlying free cash flow performance such as certain transaction related cash flow items related to the separation transaction. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future cash flows that are complementary to GAAP metrics.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729497894/en/
Senior Vice President, Investor Relations,
Vice President, Investor Relations
IR@Craneco.com
www.craneco.com
Source: