Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, reported third quarter 2017 earnings of $1.13 per diluted share, compared to $1.07 per share in the third quarter of 2016.
Third quarter 2017 sales were $696 million, up slightly compared to $694 million in 2016. Core sales declined $10 million, or 1.5%, approximately offset by a $7 million net acquisition benefit and $5 million of favorable foreign exchange.
Operating profit in the third quarter was $105 million, up 2% compared to $104 million in the third quarter of 2016. Excluding Special Items, operating profit was $106 million in the third quarter of 2017, up 2% compared to the third quarter of 2016. (Please see the attached Non-GAAP Financial Measures tables.)
The effective tax rate in the third quarter was 29.4% compared to 33.0% last year. Excluding Special Items, the effective tax rate in the third quarter of 2017 was 29.5%, down from 33.0% last year. (Please see the attached Non-GAAP Financial Measures tables.)
Cash provided by operating activities for the nine months ended September 30, 2017 was $174 million, compared to $168 million for the nine months ended September 30, 2016. The company's cash and debt positions were $572 million and $746 million, respectively, at September 30, 2017, compared to $510 million and $745 million, respectively, at December 31, 2016. The company completed $25 million of share repurchases during the third quarter.
Max Mitchell, Crane Co. President and Chief Executive Officer, stated: "We delivered another solid quarter. End market demand remains in line with our expectations, and we benefited in the quarter from continued execution on our growth and productivity initiatives, as well as a lower tax rate. With only one quarter left in 2017 and based on our performance to date, we are raising our adjusted EPS guidance range to $4.45-$4.55."
Segment Results
All comparisons detailed in this section
refer to operating results for the third quarter 2017 versus the third
quarter 2016.
Fluid Handling | ||||||||||||||||||||
| Third Quarter | Change | |||||||||||||||||||
| (dollars in millions) | 2017 | 2016 | ||||||||||||||||||
| Sales | $ | 267 | $ | 245 | $ | 22 | 9 | % | ||||||||||||
| Operating Profit | $ | 33 | $ | 31 | $ | 2 | 6 | % | ||||||||||||
| Operating Profit, before Special Items* | $ | 33 | $ | 31 | $ | 2 | 8 | % | ||||||||||||
| Profit Margin | 12.2 | % | 12.5 | % | ||||||||||||||||
| Profit Margin, before Special Items* | 12.4 | % | 12.5 | % | ||||||||||||||||
| *Please see the attached Non-GAAP Financial Measures tables | ||||||||||||||||||||
Sales increased $22 million, driven by $9 million, or 4%, core growth, an $8 million, or 3%, contribution from an acquisition, and $5 million, or 2%, of favorable foreign exchange. Operating margin declined to 12.2%, compared to 12.5% last year, primarily reflecting unfavorable mix and M&A related costs. Excluding Special Items, operating margin was 12.4% in the quarter. Fluid Handling order backlog was $269 million at September 30, 2017, compared to $228 million at December 31, 2016, and $242 million at September 30, 2016.
Payment & Merchandising Technologies | ||||||||||||||||||||
| Third Quarter | Change | |||||||||||||||||||
| (dollars in millions) | 2017 | 2016 | ||||||||||||||||||
| Sales | $ | 189 | $ | 187 | $ | 2 | 1 | % | ||||||||||||
| Operating Profit | $ | 41 | $ | 35 | $ | 7 | 19 | % | ||||||||||||
| Operating Profit, before Special Items* | $ | 41 | $ | 35 | $ | 7 | 19 | % | ||||||||||||
| Profit Margin | 22.0 | % | 18.6 | % | ||||||||||||||||
| Profit Margin, before Special Items* | 22.0 | % | 18.6 | % | ||||||||||||||||
| *Please see the attached Non-GAAP Financial Measures tables | ||||||||||||||||||||
Sales increased $2 million, or 1%, driven by $3 million, or 2%, of core growth, partially offset by slightly unfavorable foreign exchange and a small net acquisition/divestiture impact. Operating margin expanded 340 basis points to 22.0%, driven primarily by productivity, higher core sales, and favorable mix.
Aerospace & Electronics | ||||||||||||||||||||
| Third Quarter | Change | |||||||||||||||||||
| (dollars in millions) | 2017 | 2016 | ||||||||||||||||||
| Sales | $ | 172 | $ | 198 | $ | (26 | ) | (13 | )% | |||||||||||
| Operating Profit | $ | 35 | $ | 39 | $ | (4 | ) | (11 | )% | |||||||||||
| Profit Margin | 20.2 | % | 19.6 | % | ||||||||||||||||
Sales decreased $26 million, or 13%, primarily as a result of unfavorable comparisons related to shipments for a large military program in the third quarter of 2016. Operating margins increased 60 basis points to 20.2% driven by productivity and improved mix, partially offset by the lower volumes. Aerospace & Electronics order backlog was $348 million at September 30, 2017, compared to $328 million at June 30, 2017, $353 million at December 31, 2016, and $377 million at September 30, 2016.
Engineered Materials | ||||||||||||||||||||
| Third Quarter | Change | |||||||||||||||||||
| (dollars in millions) | 2017 | 2016 | ||||||||||||||||||
| Sales | $ | 68 | $ | 64 | $ | 4 | 7 | % | ||||||||||||
| Operating Profit | $ | 12 | $ | 11 | $ | 1 | 7 | % | ||||||||||||
| Profit Margin | 17.8 | % | 17.7 | % | ||||||||||||||||
Sales increased $4 million, or 7%, driven primarily by higher sales to the Recreational Vehicle market. Operating margin increased 10 basis points to 17.8%, as the higher volumes and productivity were approximately offset by higher material costs and unfavorable mix.
Raising 2017 Earnings Guidance
We now expect GAAP earnings
for full-year 2017 to be in a range of $4.41-$4.51 per diluted share,
compared to our prior guidance range of $4.31-$4.51.
Excluding Special Items, we now expect earnings of $4.45-$4.55 per diluted share, compared to our prior guidance range of $4.35-$4.55. (Please see the attached Non-GAAP Financial Measures tables.)
Additional Information
Additional information with respect
to the Company’s asbestos liability and related accounting provisions
and cash requirements is set forth in the Current Report on Form 8-K
filed with a copy of this press release.
Conference Call
Crane Co. has scheduled a conference call to
discuss the third quarter financial results on Tuesday, October 24, 2017
at 10:00 A.M. (Eastern). All interested parties may listen to a live
webcast of the call at http://www.craneco.com.
An archived webcast will also be available to replay this conference
call directly from the Company’s website. Slides that accompany the
conference call will be available on the Company’s website.
Crane Co. is a diversified manufacturer of highly engineered industrial products. Founded in 1855, Crane provides products and solutions to customers in the hydrocarbon processing, petrochemical, chemical, power generation, unattended payment, automated merchandising, aerospace, electronics, transportation and other markets. The Company has four business segments: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics and Engineered Materials. Crane has approximately 11,000 employees in the Americas, Europe, the Middle East, Asia and Australia. Crane Co. is traded on the New York Stock Exchange (NYSE:CR). For more information, visit www.craneco.com.
This press release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements present management’s expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking statements. Such factors are detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and subsequent reports filed with the Securities and Exchange Commission.
(CR-E)
(Financial Tables Follow)
CRANE CO. | |||||||||||||||||
Income Statement Data | |||||||||||||||||
(in millions, except per share data) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Net Sales: | |||||||||||||||||
| Fluid Handling | $ | 266.9 | $ | 245.1 | $ | 770.3 | $ | 759.1 | |||||||||
| Payment & Merchandising Technologies | 188.6 | 186.7 | 582.3 | 551.2 | |||||||||||||
| Aerospace & Electronics | 172.0 | 198.2 | 506.5 | 559.2 | |||||||||||||
| Engineered Materials | 68.4 | 64.2 | 212.7 | 197.0 | |||||||||||||
| Total Net Sales | $ | 695.9 | $ | 694.2 | $ | 2,071.8 | $ | 2,066.5 | |||||||||
| Operating Profit (Loss): | |||||||||||||||||
| Fluid Handling | $ | 32.6 | $ | 30.7 | $ | 91.3 | $ | 91.5 | |||||||||
| Payment & Merchandising Technologies | 41.4 | 34.7 | 123.0 | 97.1 | |||||||||||||
| Aerospace & Electronics | 34.8 | 38.9 | 104.8 | 110.6 | |||||||||||||
| Engineered Materials | 12.2 | 11.4 | 39.5 | 38.6 | |||||||||||||
| Corporate | (15.6 | ) | (11.9 | ) | (47.6 | ) | (45.9 | ) | * | ||||||||
| Total Operating Profit | 105.4 | 103.8 | 311.0 | 291.9 | |||||||||||||
| Interest Income | 0.7 | 0.5 | 1.8 | 1.4 | |||||||||||||
| Interest Expense | (9.3 | ) | (9.2 | ) | (27.3 | ) | (27.5 | ) | |||||||||
| Miscellaneous - Net | 0.2 | (0.1 | ) | (0.8 | ) | (0.7 | ) | ||||||||||
| Income Before Income Taxes | 97.0 | 95.0 | 284.7 | 265.2 | |||||||||||||
| Provision for Income Taxes | 28.5 | 31.3 | 83.6 | 77.9 | |||||||||||||
| Net income before allocation to noncontrolling interests | 68.5 | 63.7 | 201.1 | 187.3 | |||||||||||||
| Less: Noncontrolling interest in subsidiaries' earnings | 0.3 | 0.2 | 0.6 | 0.5 | |||||||||||||
| Net income attributable to common shareholders | $ | 68.2 | $ | 63.5 | $ | 200.5 | $ | 186.8 | |||||||||
| Share Data: | |||||||||||||||||
| Earnings per Diluted Share | $ | 1.13 | $ | 1.07 | $ | 3.32 | $ | 3.16 | |||||||||
| Average Diluted Shares Outstanding | 60.4 | 59.4 | 60.4 | 59.2 | |||||||||||||
| Average Basic Shares Outstanding | 59.5 | 58.5 | 59.4 | 58.3 | |||||||||||||
Supplemental Data: | |||||||||||||||||
| Cost of Sales | $ | 441.5 | $ | 449.1 | $ | 1,315.3 | $ | 1,324.5 | |||||||||
| Selling, General & Administrative | 148.5 | 141.2 | 442.4 | 450.1 | * | ||||||||||||
| Transaction Related Charges (see non-GAAP measures) | 0.5 | — | 3.1 | — | |||||||||||||
| Depreciation and Amortization ** | 18.5 | 16.7 | 54.0 | 50.8 | |||||||||||||
| Stock-Based Compensation Expense ** | 5.4 | 5.4 | 16.5 | 16.8 | |||||||||||||
| * Includes a $5 million legal settlement charge. | |||||||||||||||||
| ** Amount included within cost of sales and selling, general & administrative costs. | |||||||||||||||||
CRANE CO. | ||||||||||
Condensed Balance Sheets | ||||||||||
(in millions) | ||||||||||
September 30, |
December 31, | |||||||||
| ASSETS | ||||||||||
| Current Assets | ||||||||||
| Cash and Cash Equivalents | $ | 572.2 | $ | 509.7 | ||||||
| Accounts Receivable, net | 437.3 | 396.4 | ||||||||
| Current Insurance Receivable - Asbestos | 18.0 | 18.0 | ||||||||
| Inventories, net | 376.2 | 342.5 | ||||||||
| Other Current Assets | 19.1 | 49.1 | ||||||||
| Total Current Assets | 1,422.8 | 1,315.7 | ||||||||
| Property, Plant and Equipment, net | 292.0 | 278.9 | ||||||||
| Long-Term Insurance Receivable - Asbestos | 106.0 | 125.2 | ||||||||
| Other Assets | 580.4 | 559.0 | ||||||||
| Goodwill | 1,205.9 | 1,149.2 | ||||||||
| Total Assets | $ | 3,607.1 | $ | 3,428.0 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Current Liabilities | ||||||||||
| Notes Payable and Current Maturities of Long-Term Debt | $ | — | $ | — | ||||||
| Accounts Payable | 210.0 | 223.2 | ||||||||
| Current Asbestos Liability | 71.0 | 71.0 | ||||||||
| Accrued Liabilities | 240.5 | 223.1 | ||||||||
| Income Taxes | 13.7 | 3.5 | ||||||||
| Total Current Liabilities | 535.2 | 520.8 | ||||||||
| Long-Term Debt | 745.9 | 745.3 | ||||||||
| Long-Term Deferred Tax Liability | 43.3 | 42.4 | ||||||||
| Long-Term Asbestos Liability | 558.9 | 624.9 | ||||||||
| Other Liabilities | 333.5 | 348.9 | ||||||||
| Total Equity | 1,390.3 | 1,145.7 | ||||||||
| Total Liabilities and Equity | $ | 3,607.1 | $ | 3,428.0 | ||||||
CRANE CO. | |||||||||||||||||||||
Condensed Statements of Cash Flows | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
| Operating Activities: | |||||||||||||||||||||
| Net income attributable to common shareholders | $ | 68.2 | $ | 63.5 | $ | 200.5 | $ | 186.8 | |||||||||||||
| Noncontrolling interest in subsidiaries' earnings | 0.3 | 0.2 | 0.6 | 0.5 | |||||||||||||||||
| Net income before allocations to noncontrolling interests | 68.5 | 63.7 | 201.1 | 187.3 | |||||||||||||||||
| Depreciation and amortization | 18.5 | 16.7 | 54.0 | 50.8 | |||||||||||||||||
| Stock-based compensation expense | 5.4 | 5.4 | 16.5 | 16.8 | |||||||||||||||||
| Defined benefit plans and postretirement credit | (2.1 | ) | (2.5 | ) | (6.3 | ) | (7.3 | ) | |||||||||||||
| Deferred income taxes | 6.0 | 8.5 | 16.0 | 16.1 | |||||||||||||||||
| Cash provided by (used for) operating working capital | 45.1 | 46.7 | (38.0 | ) | (34.4 | ) | |||||||||||||||
| Defined benefit plans and postretirement contributions | (6.1 | ) | (2.0 | ) | (9.9 | ) | (6.4 | ) | |||||||||||||
| Environmental payments, net of reimbursements | (1.7 | ) | (1.6 | ) | (4.4 | ) | (8.2 | ) | |||||||||||||
| Other | (11.2 | ) | (2.5 | ) | (8.0 | ) | (4.8 | ) | |||||||||||||
| Subtotal | 122.4 | 132.4 | 221.0 | 209.9 | |||||||||||||||||
| Asbestos related payments, net of insurance recoveries | (18.6 | ) | (15.8 | ) | (46.8 | ) | (41.5 | ) | |||||||||||||
| Total provided by operating activities | 103.8 | 116.6 | 174.2 | 168.4 | |||||||||||||||||
| Investing Activities: | |||||||||||||||||||||
| Capital expenditures | (13.5 | ) | (11.9 | ) | (34.3 | ) | (38.5 | ) | |||||||||||||
| Proceeds from disposition of capital assets | — | 0.1 | — | 0.8 | |||||||||||||||||
| Payments for acquisitions, net of cash acquired | (0.7 | ) | — | (54.8 | ) | — | |||||||||||||||
| Total used for investing activities | (14.2 | ) | (11.8 | ) | (89.1 | ) | (37.7 | ) | |||||||||||||
| Financing Activities: | |||||||||||||||||||||
| Dividends paid | (19.5 | ) | (19.3 | ) | (58.8 | ) | (57.8 | ) | |||||||||||||
| Reacquisition of shares on open market | (25.0 | ) | — | (25.0 | ) | — | |||||||||||||||
| Stock options exercised - net of shares reacquired | 2.9 | 7.4 | 20.7 | 9.6 | |||||||||||||||||
| Repayment of commercial paper | — | (66.9 | ) | — | (15.6 | ) | |||||||||||||||
| Total used for financing activities | (41.6 | ) | (78.8 | ) | (63.1 | ) | (63.8 | ) | |||||||||||||
| Effect of exchange rate on cash and cash equivalents | 14.9 | 1.4 | 40.5 | 5.9 | |||||||||||||||||
| Increase in cash and cash equivalents | 62.9 | 27.4 | 62.5 | 72.8 | |||||||||||||||||
| Cash and cash equivalents at beginning of period | 509.3 | 408.9 | 509.7 | 363.5 | |||||||||||||||||
| Cash and cash equivalents at end of period | $ | 572.2 | $ | 436.3 | $ | 572.2 | $ | 436.3 | |||||||||||||
CRANE CO. | |||||||||||||||||||||||||||
Order Backlog | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, | |||||||||||||||||||||||
| Fluid Handling | $ | 268.8 | * | $ | 258.9 | * | $ | 249.8 | $ | 228.3 | $ | 241.6 | |||||||||||||||
| Payment & Merchandising Technologies | 87.6 | ** | 87.0 | ** | 85.8 | 94.0 | 65.6 | ||||||||||||||||||||
| Aerospace & Electronics | 348.4 | 328.2 | 352.4 | 353.4 | 377.1 | ||||||||||||||||||||||
| Engineered Materials | 13.9 | 14.9 | 17.8 | 15.7 | 12.3 | ||||||||||||||||||||||
| Total Backlog | $ | 718.7 | $ | 689.0 | $ | 705.8 | $ | 691.4 | $ | 696.7 | |||||||||||||||||
* Includes $3.5 million and $4.1 million as of September 30, 2017 and
June 30, 2017, respectively, of backlog pertaining to the Westlock
business acquired in April 2017.
** Includes $0.2 million and $0.3
million as of September 30, 2017 and June 30, 2017, respectively, of
backlog pertaining to the Microtronics business acquired in June 2017.
CRANE CO. | |||||||||||||||||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
Percent |
Percent | ||||||||||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | Three Months | Nine Months | ||||||||||||||||||||||||
INCOME ITEMS | |||||||||||||||||||||||||||||
| Net Sales | $ | 695.9 | $ | 694.2 | $ | 2,071.8 | $ | 2,066.5 | 0.2 | % | 0.3 | % | |||||||||||||||||
| Operating Profit | 105.4 | 103.8 | 311.0 | 291.9 | 1.5 | % | 6.6 | % | |||||||||||||||||||||
| Percentage of Sales | 15.2 | % | 15.0 | % | 15.0 | % | 14.1 | % | |||||||||||||||||||||
Special Items impacting Operating Profit: | |||||||||||||||||||||||||||||
| Transaction related charges | 0.5 | — | 3.1 | — | |||||||||||||||||||||||||
| Legal settlement charge | — | — | — | 5.0 | |||||||||||||||||||||||||
| Operating Profit before Special Items | $ | 105.9 | $ | 103.8 | $ | 314.1 | $ | 296.9 | 2.0 | % | 5.8 | % | |||||||||||||||||
| Percentage of Sales | 15.2 | % | 15.0 | % | 15.2 | % | 14.4 | % | |||||||||||||||||||||
| Net Income Attributable to Common Shareholders | $ | 68.2 | $ | 63.5 | $ | 200.5 | $ | 186.8 | |||||||||||||||||||||
| Per Share | $ | 1.13 | $ | 1.07 | $ | 3.32 | $ | 3.16 | 5.5 | % | 5.1 | % | |||||||||||||||||
Special Items Impacting Net Income Attributable to Common Shareholders: | |||||||||||||||||||||||||||||
| Transaction related charges - Net of Tax | 0.4 | — | 2.2 | — | |||||||||||||||||||||||||
| Per Share | $ | — | $ | 0.04 | |||||||||||||||||||||||||
| Legal settlement charge - Net of Tax | — | — | — | 3.3 | |||||||||||||||||||||||||
| Per Share | $ | 0.05 | |||||||||||||||||||||||||||
Net Income Attributable To Common Shareholders | $ | 68.6 | $ | 63.5 | $ | 202.7 | $ | 190.1 | 7.9 | % | 6.6 | % | |||||||||||||||||
| Per Share | $ | 1.13 | $ | 1.07 | $ | 3.36 | $ | 3.21 | 6.1 | % | 4.4 | % | |||||||||||||||||
Special Items Impacting Provision for Income Taxes | |||||||||||||||||||||||||||||
| Provision for Income Taxes - GAAP Basis | $ | 28.5 | $ | 31.3 | $ | 83.6 | $ | 77.9 | |||||||||||||||||||||
| Tax effect of transaction related charges | 0.2 | — | 0.9 | — | |||||||||||||||||||||||||
| Tax effect of legal settlement charge | — | — | — | 1.7 | |||||||||||||||||||||||||
| Provision for Income Taxes - non-GAAP Basis | $ | 28.7 | $ | 31.3 | $ | 84.5 | $ | 79.6 | |||||||||||||||||||||
Segment Information: | For the three months ended September 30, 2017 | ||||||||||||||||||||||||||||||
Fluid |
Payment & |
Aerospace |
Engineered | Corporate |
Total | ||||||||||||||||||||||||||
| Net Sales | $ | 266.9 | $ | 188.6 | $ | 172.0 | $ | 68.4 | $ | — | $ | 695.9 | |||||||||||||||||||
| Operating Profit - GAAP | 32.6 | 41.4 | 34.8 | 12.2 | (15.6 | ) | 105.4 | ||||||||||||||||||||||||
| Transaction related charges | 0.5 | 0.0 | — | — | — | 0.5 | |||||||||||||||||||||||||
| Operating Profit before Special Items | 33.1 | 41.4 | 34.8 | 12.2 | (15.6 | ) | 105.9 | ||||||||||||||||||||||||
| Percentage of Sales | 12.4 | % | 22.0 | % | 20.2 | % | 17.8 | % | 15.2 | % | |||||||||||||||||||||
Segment Information: | For the three months ended September 30, 2016 | |||||||||||||||||||||||
Fluid |
Payment & |
Aerospace |
Engineered | Corporate |
Total | |||||||||||||||||||
| Net Sales | $ | 245.1 | $ | 186.7 | $ | 198.2 | $ | 64.2 | $ | — | $ | 694.2 | ||||||||||||
| Operating Profit - GAAP | 30.7 | 34.7 | 38.9 | 11.4 | (11.9 | ) | 103.8 | |||||||||||||||||
| Percentage of Sales | 12.5 | % | 18.6 | % | 19.6 | % | 17.7 | % | 15.0 | % | ||||||||||||||
CRANE CO. | ||||||||||
Guidance | ||||||||||
(in millions, except per share data) | ||||||||||
| 2017 Full Year Guidance | ||||||||||
| 2017 Earnings Per Share Guidance | Low | High | ||||||||
| Earnings Per Share - GAAP basis | 4.41 | 4.51 | ||||||||
| Transaction related charge - Net of Tax | 0.04 | 0.04 | ||||||||
| Earnings Per Share - Non-GAAP basis | $ | 4.45 | $ | 4.55 | ||||||
Three Months Ended |
Nine Months Ended |
2017 Full Year | |||||||||||||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | Low | High | ||||||||||||||||||||||||||
CASH FLOW ITEMS | |||||||||||||||||||||||||||||||
| Cash Provided by Operating Activities | |||||||||||||||||||||||||||||||
| before Asbestos - Related Payments | $ | 122.4 | $ | 132.4 | $ | 221.0 | $ | 209.9 | $ | 330.0 | $ | 360.0 | |||||||||||||||||||
| Asbestos Related Payments, Net of Insurance Recoveries | (18.6 | ) | (15.8 | ) | (46.8 | ) | (41.5 | ) | (60.0 | ) | (60.0 | ) | |||||||||||||||||||
| Cash Provided by Operating Activities | 103.8 | 116.6 | 174.2 | 168.4 | 270.0 | 300.0 | |||||||||||||||||||||||||
| Less: Capital Expenditures | (13.5 | ) | (11.9 | ) | (34.3 | ) | (38.5 | ) | (50.0 | ) | (50.0 | ) | |||||||||||||||||||
| Free Cash Flow | $ | 90.3 | $ | 104.7 | $ | 139.9 | $ | 129.9 | $ | 220.0 | $ | 250.0 | |||||||||||||||||||
| Certain non-GAAP measures have been provided to facilitate comparison with the prior year. |
| The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. |
| In addition, Free Cash Flow provides 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. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20171023006449/en/
Contacts:
Jason D. Feldman, 203-363-7329
Director, Investor
Relations
www.craneco.com
