Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, reported second quarter 2008 net income was $59.0 million, or $0.97 per share, compared with net income of $45.7 million, or $0.75 per share, in the second quarter of 2007. Second quarter 2008 results benefited from recoveries of $2.9 million after-tax, or $0.05 per share, in conjunction with environmental remediation activities, while the second quarter of 2007 was adversely impacted by an after-tax provision of $5.4 million, or $0.09 per share, for a settlement with the U.S. Government. Excluding these items, second quarter 2008 net income was $56.1 million, or $0.93 per share, compared with second quarter 2007 net income of $51.1 million, or $0.84 per share. (Please see the attached Non-GAAP Financial Measures.)
Second quarter 2008 sales increased $32.6 million, or 5%, including core business growth of $5.6 million (1%), sales from acquired / divested businesses of $7.0 million (1%) and favorable foreign currency translation of $20.0 million (3%).
Order backlog at June 30, 2008 was a record $805 million, 9% higher than the backlog of $739 million at June 30, 2007 and 12% higher than $720 million at December 31, 2007.
Cash Flow and Financial Position
Cash provided by operating activities was $45.4 million in the second quarter of 2008, compared to $33.9 million in the second quarter of 2007. Net debt to net capitalization was 7.7% at June 30, 2008, compared with 11.5% at December 31, 2007. The Company’s cash position was $322 million at the end of the second quarter, up from $135 million at June 30, 2007. The Company did not repurchase any shares of its common stock during the quarter but may do so in future quarters if market conditions warrant. (Please also see the attached Condensed Statement of Cash Flows and Non-GAAP Financial Measures.)
Dividend Increase
Today the Company is also announcing an 11% increase in the quarterly dividend from $0.18 per share to $0.20 per share, for an indicated annual dividend rate of $0.80 per share. The new dividend rate will become effective with the third quarter 2008 dividend. This is the fourth consecutive year the Company has increased its dividend.
“Continuing the trends of the first quarter, our Merchandising Systems and Fluid Handling businesses posted strong results, with operating profit increasing 46% and 39%, respectively,” said Crane Co. president and chief executive officer Eric C. Fast. “As anticipated, we continued to experience high levels of engineering spending for the new Boeing 787 and A400M brake control systems. The deterioration in the end-markets for our Engineered Materials products was significantly greater than we expected, particularly from our recreational vehicle and transportation customers. Notwithstanding these headwinds, earnings per share were a record and increased 29% on a reported basis and 11% on a Non-GAAP basis over last year’s second quarter.
Mr. Fast continued, “We are maintaining our EPS guidance for the year of $3.45 to $3.60, but in the face of an uncertain economy, we expect to be near the low end of the range. Reflecting our rigorous financial discipline, free cash flow guidance remains unchanged. Our decision to increase the quarterly dividend by 11% today reflects our strong long-term strategic business positions, substantial cash balances and confidence in our free cash flow.”
Segment Results
All comparisons below refer to the second quarter 2008 versus the second quarter 2007, unless otherwise specified.
Aerospace & Electronics
| Second Quarter | Change | ||||||||||||||
| (dollars in millions) | 2008 | 2007 | |||||||||||||
| Sales | $ | 165.9 | $ | 160.2 | $ | 5.7 | 4 | % | |||||||
| Operating Profit | $ | 18.5 | $ | 24.4 | ($ 5.9 | ) | (24 | %) | |||||||
| Profit Margin | 11.1 | % | 15.2 | % | |||||||||||
The second quarter 2008 sales increase of $5.7 million reflected a sales increase of $12.0 million in the Aerospace Group and a decrease of $6.3 million in the Electronics Group. Segment operating profit declined by $5.9 million as a result of an $8.0 million increase in engineering expenses related to products for the Boeing 787 and Airbus A400M programs. This spending was partly offset by a $5.6 million negotiated cost recovery from an aerospace customer associated with prior engineering spending. The Company previously indicated that it expected such recoveries in 2008, and additional recoveries could occur in the third or fourth quarters. These cost recoveries occur from time to time and are related to design changes and/or program discontinuations. Excluding the investment in these two new programs, the segment continued to experience solid operating results.
The Aerospace & Electronics segment backlog was $418 million at June 30, 2008, an increase of 6% over $393 million at December 31, 2007 and an increase of 3% over $407 million at March 31, 2008.
Engineered Materials
| Second Quarter | Change | |||||||||||||
| (dollars in millions) | 2008 | 2007 | ||||||||||||
| Sales | $ | 72.9 | $ | 87.7 | ($14.8 | ) | (17 | %) | ||||||
| Operating Profit | $ | 8.1 | $ | 17.9 | ($9.8 | ) | (55 | %) | ||||||
| Profit Margin | 11.1 | % | 20.4 | % | ||||||||||
Reflecting significantly depressed recreational vehicle, transportation and, to a lesser extent, building products end markets, core segment sales were down $21.5 million, or 25%. The sales decline was partially offset by $6.7 million of sales related to the September 2007 acquisition of the composite panel business of Owens Corning. Operating profit in 2008 decreased 55% reflecting lower core business sales, as price increases offset higher raw material costs.
Merchandising Systems
| Second Quarter | Change | |||||||||||||
| (dollars in millions) | 2008 | 2007 | ||||||||||||
| Sales | $ | 116.2 | $ | 100.6 | $ | 15.7 | 16 | % | ||||||
| Operating Profit | $ | 17.3 | $ | 11.9 | $ | 5.4 | 46 | % | ||||||
| Profit Margin | 14.9 | % | 11.8 | % | ||||||||||
Reflecting strong organic sales growth and favorable seasonal factors, Merchandising Systems had record sales and operating profit in the second quarter. Sales growth of 16% was driven by increased sales in Vending Solutions, primarily from the BevMax III glass front vender, and continued strong global demand for Payment Solutions. Higher sales volumes were effectively leveraged into higher operating profit, which increased $5.4 million, or 46%.
Fluid Handling
| Second Quarter | Change | |||||||
| (dollars in millions) | 2008 | 2007 | ||||||
| Sales | $301.1 | $281.2 | $19.9 | 7% | ||||
| Operating Profit | $ 46.6 | $ 33.4 | $ 13.2 | 39% | ||||
| Profit Margin | 15.5% | 11.9% | ||||||
Second quarter 2008 sales and operating profit were records for this segment. Second quarter 2008 sales increased $19.9 million, or 7%, including $10.7 million (4%) of core sales and favorable foreign currency translation of $14.4 million (5%) offset by sales from divested businesses of $5.2 million (2%). Based on continued strong demand from the global chemical / pharmaceutical and energy industries, throughput efficiencies and solid pricing discipline, operating profit increased $13.2 million, or 39%, and profit margin increased to 15.5%, continuing the trend in the first quarter.
The Fluid Handling segment backlog was $298 million at June 30, 2008, an increase of 23% over $243 million at December 31, 2007 and an increase of 11% over $268 million at March 31, 2008.
Controls
| Second Quarter | Change | |||||||||||||
| (dollars in millions) | 2008 | 2007 | ||||||||||||
| Sales | $ | 37.3 | $ | 31.2 | $ | 6.0 | 19 | % | ||||||
| Operating Profit | $ | 3.5 | $ | 2.9 | $ | 0.7 | 24 | % | ||||||
| Profit Margin | 9.5 | % | 9.1 | % | ||||||||||
The second quarter 2008 sales increase of $6.0 million reflects $5.6 million of sales related to the August 2007 acquisition of the Mobile Rugged Business division of Kontron America. Operating profit increased 24% to $3.5 million.
Full Year 2008 Guidance
The Company is maintaining its 2008 earnings per share guidance of $3.45 to $3.60, but in the face of an uncertain economy, results are expected to be near the low end of the range. The Company forecasts continued strong demand in Fluid Handling, which represents approximately 43% of sales. Aerospace engineering spending will remain at high levels, although offset in part by potential additional negotiated cost recoveries. Engineered Materials sales and operating profits will be lower than previously expected, reflecting difficult recreational vehicle and transportation end markets. While Merchandising Systems is expected to have record profits for the year, driven by sales of the BevMax III and continued demand for Payment Solutions, its operating profit is expected to be lower in the second half of the year than the first half because of normal seasonal factors and the impact of a softening U.S. economy. The Company’s guidance includes an estimated annual tax rate of approximately 30% compared to previous guidance of 31%, as the amount of lower-taxed foreign earnings as a percent of total corporate earnings is expected to be higher primarily due to favorable Fluid Handling results. This expected tax rate anticipates the retroactive renewal of the Federal R&D tax credit by year-end.
Management remains confident that cash flow will equal or exceed its 2008 guidance of $220 million from operating activities and $170 million of free cash flow.
Please see the Non-GAAP Financial Measures table attached to this press release for details. 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 second quarter’s financial results on Tuesday, July 29, 2008 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.
Crane Co. is a diversified manufacturer of highly engineered industrial products. Founded in 1855, Crane provides products and solutions to customers in the aerospace, electronics, hydrocarbon processing, petrochemical, chemical, power generation, automated merchandising, transportation and other markets. The Company has five business segments: Aerospace & Electronics, Engineered Materials, Merchandising Systems, Fluid Handling, and Controls. Crane has approximately 12,000 employees in North America, South America, Europe, 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, 2007 and subsequent reports filed with the Securities and Exchange Commission.
(Financial Tables Follow)
2008 – 15
| CRANE CO. | ||||||||||||||||
| Income Statement Data | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Net Sales: | ||||||||||||||||
| Aerospace & Electronics | $ | 165,928 | $ | 160,172 | $ | 324,379 | $ | 308,564 | ||||||||
| Engineered Materials | 72,937 | 87,712 | 155,710 | 175,461 | ||||||||||||
| Merchandising Systems | 116,233 | 100,563 | 229,737 | 197,927 | ||||||||||||
| Fluid Handling | 301,100 | 281,206 | 589,600 | 544,157 | ||||||||||||
| Controls | 37,284 | 31,244 | 72,924 | 63,006 | ||||||||||||
| Total Net Sales | $ | 693,482 | $ | 660,897 | $ | 1,372,350 | $ | 1,289,115 | ||||||||
| Operating Profit (Loss): | ||||||||||||||||
| Aerospace & Electronics | $ | 18,487 | $ | 24,365 | $ | 34,482 | $ | 45,391 | ||||||||
| Engineered Materials | 8,100 | 17,933 | 19,754 | 33,971 | ||||||||||||
| Merchandising Systems | 17,339 | 11,912 | 31,477 | 21,543 | ||||||||||||
| Fluid Handling | 46,556 | 33,396 | 91,318 | 64,537 | ||||||||||||
| Controls | 3,547 | 2,855 | 4,847 | 5,202 | ||||||||||||
| Corporate* | (7,758 | ) | (18,664 | ) | (20,258 | ) | (30,448 | ) | ||||||||
| Total Operating Profit (Loss) | 86,271 | 71,797 | 161,620 | 140,196 | ||||||||||||
| Interest Income | 2,883 | 989 | 5,167 | 2,302 | ||||||||||||
| Interest Expense | (6,678 | ) | (6,901 | ) | (13,183 | ) | (13,769 | ) | ||||||||
| Miscellaneous- Net | 1,631 | 931 | 1,961 | 2,744 | ||||||||||||
| Income (Loss) Before Income Taxes | 84,107 | 66,816 | 155,565 | 131,473 | ||||||||||||
| Provision for Income Taxes | 25,098 | 21,080 | 48,178 | 42,092 | ||||||||||||
| Net Income (Loss) | $ | 59,009 | $ | 45,736 | $ | 107,387 | $ | 89,381 | ||||||||
| Share Data: | ||||||||||||||||
| Net Income (Loss) per Diluted Share | $ | 0.97 | $ | 0.75 | $ | 1.77 | $ | 1.46 | ||||||||
| Average Diluted Shares Outstanding | 60,581 | 60,882 | 60,812 | 61,096 | ||||||||||||
| Average Basic Shares Outstanding | 59,707 | 59,767 | 59,911 | 60,039 | ||||||||||||
Supplemental Data: | ||||||||||||||||
| Cost of Sales - Operations | $ | 455,647 | $ | 452,273 | $ | 908,178 | $ | 875,957 | ||||||||
| Selling, General & Administrative | 151,564 | 136,827 | 302,552 | 272,962 | ||||||||||||
| Depreciation and Amortization** | 14,712 | 15,492 | 29,695 | 31,068 | ||||||||||||
| Stock Compensation Expense | 3,370 | 3,072 | 6,985 | 7,376 | ||||||||||||
* Second quarter 2008 operating profit includes $4.4 million of
recoveries related to environmental activities, | ||||||||||||||||
| **Amount included within cost of sales and selling, general & administrative costs. | ||||||||||||||||
| CRANE CO. | ||||||
| Condensed Balance Sheets | ||||||
| (in thousands) | ||||||
| June 30, | December 31, | |||||
| 2008 | 2007 | |||||
| ASSETS | ||||||
| Current Assets | ||||||
| Cash and Cash Equivalents | $ | 321,548 | $ | 283,370 | ||
| Accounts Receivable | 377,844 | 345,176 | ||||
| Current Insurance Receivable - Asbestos | 33,600 | 33,600 | ||||
| Inventories | 358,328 | 327,719 | ||||
| Other Current Assets | 61,486 | 47,757 | ||||
| Total Current Assets | 1,152,806 | 1,037,622 | ||||
| Property, Plant and Equipment | 293,013 | 289,683 | ||||
| Long-Term Insurance Receivable - Asbestos | 284,864 | 306,557 | ||||
| Long-Term Deferred Tax Assets | 192,288 | 220,370 | ||||
| Other Assets | 245,116 | 256,510 | ||||
| Goodwill | 769,642 | 766,550 | ||||
| Total Assets | $ | 2,937,729 | $ | 2,877,292 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current Liabilities | ||||||
| Notes Payable and Current Maturities of Long-Term Debt | $ | 3,648 | $ | 548 | ||
| Accounts Payable | 191,426 | 177,978 | ||||
| Current Asbestos Liability | 84,000 | 84,000 | ||||
| Accrued Liabilities | 223,720 | 230,295 | ||||
| Income Taxes | 9,394 | 731 | ||||
| Total Current Liabilities | 512,188 | 493,552 | ||||
| Long-Term Debt | 398,390 | 398,301 | ||||
| Deferred Tax Liability | 33,019 | 31,880 | ||||
| Long-Term Asbestos Liability | 904,469 | 942,776 | ||||
| Other Liabilities | 112,696 | 117,586 | ||||
| Minority Interest | 8,326 | 8,394 | ||||
| Shareholders' Equity | 968,641 | 884,803 | ||||
| Total Liabilities and Shareholders' Equity | $ | 2,937,729 | $ | 2,877,292 | ||
| CRANE CO. | ||||||||||||||||
| Condensed Statements of Cash Flows | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Operating Activities: | ||||||||||||||||
| Net income | $ | 59,009 | $ | 45,736 | $ | 107,387 | $ | 89,381 | ||||||||
| Income from joint venture | - | (1,528 | ) | - | (2,545 | ) | ||||||||||
| Gain on divestitures | (932 | ) | - | (932 | ) | - | ||||||||||
| Depreciation and amortization | 14,712 | 15,492 | 29,695 | 31,068 | ||||||||||||
| Stock-based compensation expense | 3,370 | 3,072 | 6,985 | 7,376 | ||||||||||||
| Deferred income taxes | 5,768 | 351 | 11,865 | (9,468 | ) | |||||||||||
| Cash used for operating working capital | (16,454 | ) | (20,484 | ) | (46,288 | ) | (46,132 | ) | ||||||||
| Other | (5,552 | ) | (2,799 | ) | (2,601 | ) | (14,131 | ) | ||||||||
| Subtotal | 59,921 | 39,840 | 106,111 | 55,549 | ||||||||||||
| Asbestos related payments, net of insurance recoveries | (14,553 | ) | (5,972 | ) | (16,614 | ) | 15,208 | |||||||||
| Total provided by operating activities | 45,368 | 33,868 | 89,497 | 70,757 | ||||||||||||
| Investing Activities: | ||||||||||||||||
| Capital expenditures | (11,321 | ) | (14,868 | ) | (20,401 | ) | (21,831 | ) | ||||||||
| Proceeds from disposition of capital assets | 48 | 204 | 444 | 11,236 | ||||||||||||
| Proceeds from divestitures | 1,320 | - | 2,106 | - | ||||||||||||
| Payment for acquisition, net of cash acquired | (47 | ) | 150 | (132 | ) | 145 | ||||||||||
| Total used for investing activities | (10,000 | ) | (14,514 | ) | (17,983 | ) | (10,450 | ) | ||||||||
| Financing Activities: | ||||||||||||||||
| Dividends paid | (10,761 | ) | (8,989 | ) | (21,556 | ) | (18,039 | ) | ||||||||
| Reacquisition of shares on the open market | - | (10,000 | ) | (40,000 | ) | (50,001 | ) | |||||||||
| Stock options exercised - net of shares reacquired | 5,535 | 7,531 | 9,091 | 7,144 | ||||||||||||
| Excess tax benefit from stock-based compensation | 793 | 1,437 | 900 | 2,127 | ||||||||||||
| Repayment of long-term debt | - | (22 | ) | (89 | ) | |||||||||||
| Net increase / decrease in short-term debt | (5,995 | ) | (10,408 | ) | 3,042 | (8,608 | ) | |||||||||
| Total used for financing activities | (10,428 | ) | (20,451 | ) | (48,523 | ) | (67,466 | ) | ||||||||
| Effect of exchange rate on cash and cash equivalents | 1,880 | 2,251 | 15,187 | 3,627 | ||||||||||||
| Increase (decrease) in cash and cash equivalents | 26,820 | 1,154 | 38,178 | (3,532 | ) | |||||||||||
| Cash and cash equivalents at beginning of period | 294,728 | 133,921 | 283,370 | 138,607 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 321,548 | $ | 135,075 | $ | 321,548 | $ | 135,075 | ||||||||
| CRANE CO. | ||||||||||||||
| Order Backlog | ||||||||||||||
| (in thousands) | ||||||||||||||
| June 30, | March 31, | December 31, | June 30, | |||||||||||
| 2008 | 2008 | 2007 | 2007 | |||||||||||
| Aerospace & Electronics | $ | 417,883 | $ | 407,398 | $ | 392,822 | $ | 393,708 | ||||||
| Engineered Materials | 11,892 | 15,941 | 14,802 | 18,544 | ||||||||||
| Merchandising Systems | 35,708 | 42,551 | 34,093 | 32,260 | ||||||||||
| Fluid Handling | 297,937 | 268,302 | 242,591 | 259,144 | ||||||||||
| Controls | 41,633 | 34,464 | 35,273 | 35,701 | ||||||||||
| Total Backlog | $ | 805,053 | $ | 768,656 | $ | 719,581 | $ | 739,357 | ||||||
| CRANE CO. | |||||||||||||||||||||||
| Non-GAAP Financial Measures | |||||||||||||||||||||||
| (in thousands, except for per share amounts) | |||||||||||||||||||||||
| Percent Change | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three and Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||
INCOME ITEMS: | |||||||||||||||||||||||
| Net Sales | $ | 693,482 | $ | 660,897 | $ | 1,372,350 | $ | 1,289,115 | 4.9 | % | 6.5 | % | |||||||||||
| Operating Profit (Loss) | $ | 86,271 | $ | 71,797 | $ | 161,620 | $ | 140,196 | |||||||||||||||
| Government Settlement - Pre-Tax (a) | 7,600 | 7,600 | |||||||||||||||||||||
| Environmental Reimbursement - Pre-Tax (b) | (4,444 | ) | (4,444 | ) | |||||||||||||||||||
| Operating Profit before Government Settlement and Environmental Reimbursement | $ | 81,827 | $ | 79,397 | $ | 157,176 | $ | 147,796 | 3.1 | % | 6.3 | % | |||||||||||
| Percentage of Sales | 11.8 | % | 12.0 | % | 11.5 | % | 11.5 | % | |||||||||||||||
| Net Income (Loss) | $ | 59,009 | $ | 45,736 | $ | 107,387 | $ | 89,381 | |||||||||||||||
| Per Share | $ | 0.97 | $ | 0.75 | $ | 1.77 | $ | 1.46 | |||||||||||||||
| Government Settlement - Net of Tax (a) | - | 5,396 | - | 5,396 | |||||||||||||||||||
| Per Share | $ | 0.09 | $ | 0.09 | |||||||||||||||||||
| Environmental Reimbursement - Net of Tax (b) | (2,889 | ) | (2,889 | ) | |||||||||||||||||||
| Per Share | $ | (0.05 | ) | $ | (0.05 | ) | |||||||||||||||||
| Net Income before Government Settlement and Environmental Reimbursement | $ | 56,120 | $ | 51,132 | $ | 104,498 | $ | 94,777 | 9.8 | % | 10.3 | % | |||||||||||
| Per Share | $ | 0.93 | $ | 0.84 | $ | 1.72 | $ | 1.55 | |||||||||||||||
| Average Diluted Shares Outstanding | 60,581 | 60,882 | 60,812 | 61,096 | |||||||||||||||||||
| (a) During the three months ended June 30, 2007, the Company recorded a settlement with the US Government. | |||||||||||||||||||||||
| (b) During the three months ended June 30, 2008, the Company recorded a $2.1 million reimbursement from the US Government and a $2.4 million reimbursement from a service provider, both related to environmental clean-up activities. | |||||||||||||||||||||||
| June 30, | December 31, | ||||||||||||||||||||||
| 2008 | 2007 | ||||||||||||||||||||||
BALANCE SHEET ITEMS | |||||||||||||||||||||||
| Notes Payable and Current Maturities of Long-Term Debt | $ | 3,648 | $ | 548 | |||||||||||||||||||
| Long-Term Debt | 398,390 | 398,301 | |||||||||||||||||||||
| Total Debt | 402,038 | 398,849 | |||||||||||||||||||||
| Less: Cash and Cash Equivalents | (321,548 | ) | (283,370 | ) | |||||||||||||||||||
| Net Debt | 80,490 | 115,479 | |||||||||||||||||||||
| Shareholders' Equity | 968,641 | 884,803 | |||||||||||||||||||||
| Net Capitalization | $ | 1,049,131 | $ | 1,000,282 | |||||||||||||||||||
| Percentage of Net Debt to Net Capitalization | 7.7 | % | 11.5 | % | |||||||||||||||||||
| Three Months Ended | Six Months Ended | Year Ended | |||||||||||||||||||||
| June 30, | June 30, | December 31, | |||||||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||
| (Estimated) | |||||||||||||||||||||||
CASH FLOW ITEMS | |||||||||||||||||||||||
| Cash Provided from Operating Activities | |||||||||||||||||||||||
| before Asbestos - Related Payments | $ | 59,921 | $ | 39,840 | $ | 106,111 | $ | 55,549 | 275,000 | $ | 243,031 | ||||||||||||
| Asbestos Related Payments, Net of Insurance Recoveries | (14,553 | ) | (5,972 | ) | (16,614 | ) | (16,292 | ) | (55,000 | ) | (41,698 | ) | |||||||||||
| Equitas Receipts | - | - | - | 31,500 | - | 31,500 | |||||||||||||||||
| Cash Provided from Operating Activities | 45,368 | 33,868 | 89,497 | 70,757 | 220,000 | 232,833 | |||||||||||||||||
| Less: Capital Expenditures | (11,321 | ) | (14,868 | ) | (20,401 | ) | (21,831 | ) | (50,000 | ) | (47,169 | ) | |||||||||||
| Free Cash Flow | $ | 34,047 | $ | 19,000 | $ | 69,096 | $ | 48,926 | 170,000 | $ | 185,664 | ||||||||||||
| 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 positive cash flow. 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.
Contacts:
Richard E. Koch, 203-363-7352
Director, Investor
Relations
and Corporate Communications
www.craneco.com
